Online advertising growth slows but market reaches total spend of $14 billion

On February 26, 2023 Media Releases

Monday 27th February 2023:   The Australian online advertising market reached $14.2bn spend for the 2022 calendar year according to data released today in the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC Australia.   Total advertising expenditure increased 9.1% year-on-year, which while strong, was a slowdown from the growth rates of 36% reported in 2021.   

All categories saw year on year growth with general display growing 7.7% ($5.5bn), search and directories 8.5% ($6.2bn) and classifieds increasing by 14% ($2.5bn).  While video advertising increased 12% year on year to reach $3.3bn. 

Total advertising expenditure by calendar year ($million)

For the first time, the Report also included digital audio data thanks to an industry collaboration between IAB and Commercial Radio & Audio.  It found that digital audio ad spend hit $221.2 million for calendar year 2022, with streaming attracting 63% of the expenditure and podcasting 37%.

 Gai Le Roy CEO of IAB Australia commented: “2022 had two distinct growth phases, with 15% for the first six months compared to 2021 and 4% growth in the second half of the year. Despite this slow down, we are seeing encouraging signs including automotive advertiser’s share of display advertising returning to levels not seen since early 2021.”

The top five advertiser categories in general display advertising remained consistent year on year, with retail, automotive and FMCG stable, entertainment share increasing slightly and finance share decreasing slightly. 

The share of content publishers inventory bought via an agency insertion order has increased from 42% in 2021 to 44% in 2022. Programmatic guaranteed deals share increased from 13% to 15% driven in particular by video investment.

 Commenting on the inclusion of digital audio data in the OAER, Ford Ennals, CEO of CRA said “Digital audio has emerged as a category following soaring growth in listener numbers and strong interest by advertisers and is now one of the most significant growth markets in Australian media.  It’s great to be able to confirm with IAB that this market has grown so quickly from nothing to over $220 million in an incredibly short space of time.”

 December 2022 Quarter Data

  • $3.639bn with overall growth softening to just 1.2% against the same quarter in 2021.
  • Classifieds share of the digital ad market dropped 3% points compared to the previous quarter reflecting changes in the job and real estate markets.
  • Video investment represented 60% of all display advertising up from 56% compared to the same quarter in 2021.
  • Retailers’ investment in digital display advertising represented 18% up from 15% against the same quarter in 2021.



IAB Members can download the full report here.