Video advertising, driven by growing interest from FMCG brands, has seen a 76 per cent jump in spending in the latest Interactive Advertising Bureau figures complied by PWC released today.
The figures for the full 2013/2014 financial year saw spending online surge 22% to a total of $4.387 billion.
The growth in video pushed it to a total of $196 million for the year, with the report revealing that FMCG's were spending on video at more than twice the rate they were spending on display advertising.
The video sector was being further supported by the retail and finance sector, which between the three of them represented 43% of all video advertising.
It is the first time that video spending has been included in the data.
Search and directories continue to dominate the numbers, accounting for 52% of all spending, ahead of display advertising which made up 29.2% of the total with the remaining 18.8% attributed to classifieds.
Mobile has been another stand out performer in the past 12 months, more than doubling its contribution to the to general display expenditure year on year.
The mobile space is now more valuable than the total magazine market.
IAB CEO Alice Manners said combination of video and mobile had been a revelation.
“The fusion of video advertising with mobile has been transformational for advertisers and publishers alike,” Manners said.
“Mobile inventory has been somewhat undervalued, but the cross-platform opportunity that video advertising brings to it has unlocked considerable value and potential for both sectors.”
One of the biggest surprises was the strong growth in retail, rising to a 9.1% share of total advertising.
“The categories that are spending in video, FMCG and retail, are very similar to TV spend and that in itself, that message of confidence in the medium says a lot because historically it was the FMCGs that were a little bit more conservative in video, so that is a nice sign,” Manners said.
The automotive sector remained the biggest player in the market however, its share slipped to 19.1%, while finance saw its share slip to 11.3 per cent.
IAB 2014 Financial Year Overall
IAB Video Advertising Growth
IAB Top Five Sectors
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