Australian digital advertising up 24.2% on FY20 result
The Australian market’s penchant for digital advertising continues to grow, reaching $11.4 billion for the 12 months to 30 June 2021 (FY 2021). This represents an increase of 24.2% on the previous year, and the highest growth year-on-year since 2016.
The Interactive Advertising Bureau (IAB) Australia Online Advertising Expenditure Report (OAER) prepared by PwC, reports that all sectors of online advertising experienced double-digit growth in the 2021 financial year. For the June 2021 quarter, online advertising reached $3.271 billion*, an impressive 60.5% growth compared to the June 2020 quarter, which included the peak of the 2020 Australian COVID-19 lockdowns. It’s also a 13.4% increase on the previous quarter.
Video advertising jumped 38.8% year-on-year to reach $2.4 billion, general display grew 29.7% to $4.4 billion , search and directories grew 22.3% to $5.1 billion and classifieds grew 17.4% to $1.9 billion.
The report found that for FY 2021, retail was the top advertising category with 16% of all display advertising, up from 11.4% share in FY 2020. Across other categories, FMCG and technology expenditure increased share for the period to 7.2% and 6.4% respectively, while finance share remained flat.
Unsurprisingly given the impact of the pandemic, travel advertising expenditure both decreased year-on-year. Automotive advertising also fell, despite the industry posting bumper sales data.
Source: IAB [click to enlarge]
“While the evolution of retailing has become a major driver of investment in digital advertising and we expect some shopping will return to physical stores in the future, the broad reach, deep engagement and data rich offerings will ensure retailers continue to place digital at the heart of their advertising and marketing plans,” said Le Roy.
Connected TV spend saw an increase from 38% to 47% year-on-year, while desktop share decreased from 36% to 32% and mobile from 26% to 21% for FY 2021.
Programmatic trading continued to hold strong with slight growth from 41% to 43% share of expenditure for FY 2021, against 41% of inventory purchased via agency and 16% direct.
Source: IAB [click to enlarge]
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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