Market Data

Mobile Ad Spend Stakes Place In Digital Ad Market

Mobile ad spend remains the compelling force behind soaring digital investments, and the current ad market overall in Australia. A recent CEASA (Commercial Economic Advisory Service of Australia) report combined ad revenue from all major paid media channels with data sources including IAB Australia, ThinkTV, Outdoor Media Association, and other agency groups. Its findings revealed nearly half of all ad investments are made digitally, thanks in part to the relentless climb of mobile and what seems to be a last-minute surge in video. The main points pertaining to mobile are:

  • Digital advertising spend accounted for 48.6% of all advertising spend in 2016, up 6.1% from 2015, and largely thanks to the mobile advertising subset.
  • Online ad spend exceeded $1.88 billion in Q3 2016 – a 20.3% increase on last year during the same quarter.
  • While general display ads increased by 21% year-on-year, directories and search elevated by 22.8%.
  • FMCG advertisers are spending three times as much on video advertising as they are on display ads.
  • Mobile ad spend increased to 15% of the entire paid media market for 2016 (up from 11% the year previous).
  • Digital video continues to grow, from 3% of the market in 2015 to 5% in 2016.

“The latest consumer data shows that over 20 million Aussies are online and 15 million are on their mobiles.  As consumer penetration increases and immersion deepens, it’s inevitable that smart marketers would want to follow.  All the data suggests that deepening consumer immersion into mobile and video will continue to drive revenue.”
– Vijay Solanki, CEO of IAB

Mobile has created the ultimate content portability, and encouraged a surplus of opportunities ranging from geofenced outdoor advertising to social media. As the digital ad dollars follow, brands that elect cross-media campaigns backed with strong mobile and video content initiatives will bypass much of the noise created by otherwise impersonal ad content. An International Ad Spend Forecast by Warc reveals similar figures, and expects that online ad spend will grow even further by 10.4% this year.

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