Achieves 3.8% growth year on year with video the star performer at 18% growth
Embargoed for publication Tuesday 19th May 2020: Total online advertising growth slowed in the first quarter of 2020 to deliver overall year-on-year growth of 3.8% according to the IAB Australia Online Advertising Expenditure Report (OAER). The Report compiled by PwC, found that the drop in expenditure traditionally experienced after the December holiday quarter was more pronounced this year, with the total advertising in Q1 reaching $2,286m in expenditure.
IAB Members can download the report here.
The Report, which captures data until 30th March 2020, reflects the traumatic summer season of bushfires and drought, as well as the traditional post Xmas decline, but only includes a couple of weeks of data when the country was seriously impacted by COVID-19 lockdown.
Gai Le Roy, CEO of IAB Australia commented: “While this report captures the zeitgeist of the tough start to the year we experienced Australia wide, it precedes the real impact of COVID-19. There is no doubt that the current quarter will be tougher for all in the industry but we are seeing shoots of hope in some sectors.”
Additional findings from the IAB OAER Report from PwC
- All online advertising categories showed growth year on year, but general display and search & directories declined from the preceding December quarter (12% and 4% respectively. Classifieds grew 2% from the December quarter. Video advertising continued to grow, increasing to 53% share of general display advertising, an 18% growth on the same quarter last year.
- The skew towards programmatic advertising continued, with 43% of all advertising bought programmatically versus 38% being bought from agencies using insertion orders (IOs). The percentage of inventory bought directly from advertisers increased to 19%. Some 56%, the bulk of content publisher’s video inventory, was bought programmatically in the March quarter.
- For the first time, the entertainment category entered the top five industry categories, joining retail, finance, real estate and automotive, despite all recording declines against the previous quarter. The technology sector experienced the largest increase in share quarter on quarter, while the travel sector experienced the largest decline.
- The Report also found that in Q1, content publisher’s desktop video inventory revenue share increased slightly to 36% with an increase in people working from home, up from 34% the preceding quarter, while viewing via connected TVs was 38% and 26% viewed via mobile video advertising.
Second wave of Ad Impact Research
IAB is working on the second wave of its ad impact research to understand the investment intentions of advertisers and agencies for the coming months. Data to date shows that approximately 50% of advertisers who had previously pulled spending are now back in market investing, though at mostly at a reduced level. The number of those who have reduced or stopped their spending all together appears to have reduced though a significant number continue to delay investment or completely withdraw.
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About the Interactive Advertising Bureau
As an independent industry association with more than 150 members in Australia and nearly 9,000 globally spanning media owners, publishers, technology companies, agencies and advertisers, IAB works to align industry stakeholders to develop solutions for the issues faced by the market and develop standards that are integral to the operation of digital advertising.
IAB Australia also works closely with other industry associations including MFA and AANA to help shape the rules of play around measurement, Australian Digital Ad Practices, mentorship, global tech and policy work, Tech Lab standards, standardising terminology and supporting the broad media and marketing community.
For further information about IAB Australia please contact:
Gai Le Roy
CEO – IAB Australia
T: 0408 431 455
Pru Quinlan
Einsteinz Communications
T: (02) 8905 0995
