Online advertising industry breaks through $3b barrier with growth across all categories

Posted by IAB Australia On August 13, 2012 Media Releases

12th August 2012: Online advertising has sustained its strong growth and surpassed the $3b expenditure mark for the financial year ending 30th June 2012. The results, which were announced today by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC), show total online advertising increased 21 percent year on year, with revenues for the financial year reaching $3,135.95m, an increase of $549.1m (or 21 percent) on the 12 months ended 30 June 2011.

The increase reflects growth experienced in all categories, with a 30 percent increase in Search and Directories advertising, 15 percent increase in General Display and Classifieds increasing by 11 percent from the prior year.

The total online advertising expenditure for Mobile Advertising for the 12 months ended 30 June 2012 was $47.5m, with growth over the twelve months of 212 percent. Of the mobile advertising, general display advertising accounted for 60.3 percent, and search advertising accounted for 39.7 percent for the three months ended 30 June 2012.  In the same quarter, smartphone advertising accounted for 67.7 percent, and tablet advertising accounted for 32.3 percent.

The IAB Online Advertising Expenditure Report (OAER or Report) for June 2012 adopted a new approach, supplementing the data collected from industry participants with the inclusion of estimates for Google display, video, and mobile advertising as well as Facebook display advertising.

Additionally the report uses a refined methodology for estimating Google search and it also includes historical mobile advertising data collected from industry participants from March 2011 and combined with estimated Google mobile advertising, to give a picture for the first time of the aggregated Mobile advertising market and the growth trends.

Paul Fisher, CEO of IAB Australia said “this report captures the truest picture of the online advertising industry in Australia with the inclusion of methodical estimates for Google and Facebook, and the inclusion of mobile advertising. The total advertising expenditure exceeding $3 billion is on track with our forecasts and trends and we expect online advertising will surpass free TV in calendar year 2013 and print in FY1314.

“As marketers and media buyers seek to reach, engage and influence fragmenting audiences in a challenging economic environment, this data should underpin their budgetary decisions to grow their investment in online advertising. The growth in mobile advertising over the past 6 quarters shows that for a minor investment relative to TV, print and other media spends, marketers can add mobile audience reach and executions to their online search and display campaigns.”

Maria Martin, Partner, PricewaterhouseCoopers added “With the continuing explosion in online and mobile we thought it was essential to include an estimate of advertising revenue for Google and Facebook, together with mobile advertising expenditures, to provide what we believe is now the most accurate data capture of the Australian online and mobile advertising market. The growth is strong and consistent with forecasts and trends in other major markets such as the US. This report provides a comprehensive data set intended to inform marketers, media and creative agencies, media owners, and technology providers and assist their business decisions.”

Comparative data for the period from September 2010 has been restated to be consistent with the methodology changes.

Search and directories dominates the online advertising sector overall with 52.3 percent share of spend reaching $1,639 million.  Classifieds holds 20.5 percent with $643 million and General Display reaching $853 million and holding 27.2 percent market share.


About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 40 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to increase the share of advertising and marketing dollars that interactive media captures in the marketplace.

IAB Australia’s board includes representatives of AIMIA, APN News & Media,, Fairfax Media, Google, Mi9, Network Ten, News Australia Sales, REA Group, SBS, Telstra Advertising Network, TressCox Lawyers and Yahoo!7. It has four objectives:

• To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
• To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers, and the press
• To be the primary advocate for the interactive marketing and advertising industry
• To expand the breadth and depth of IAB membership while increasing direct value to members 
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IAB Australia

IAB Australia is the peak trade association for online advertising in Australia. As one of over 43 IAB offices globally and with a rapidly growing membership, the role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia.