Australian online advertising grew 6.5% to $3.45 billion in the September quarter compared to the same three months last year, according to data from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC.
Compared to the June quarter, overall online advertising growth softened by 4.9% with advertiser spend across general display and search being pulled back driven by uncertain macroeconomic conditions.
Only classifieds saw spend increasing 4.7%, driven by record job ad volumes. General display advertising fell 4.9% in spend for the quarter, while search and directories decreased 8.4%.
Classified advertising held 19% share of spend ($644m), with search & directories at 42% ($1.475m) and general display held at 39% ($1.336m).
While video advertising outperformed the overall general display market, its growth decelerated as advertisers pull back their spend in response towards market conditions. Connected TV continued its steady increase in share of content publishers video revenue, increasing to 49% of spend, while desktop decreased slightly to 31% share and mobile held at 20% of expenditure.
Gai Le Roy, CEO of IAB Australia: “Overall the results for digital advertising investment were positive for the September quarter, with classified listings market being the standout performer driven in a large part by the employment market.
"The display market was softer than we have seen in previous quarters and while we are seeing some caution around marketing investment, the comparative quarter in 2021 was bolstered by Olympic related ad dollars.”
Retail advertising held its leading position of expenditure, while real estate and automotive also held their top five ranking. Entertainment was the standout for the quarter, entering the top five for expenditure, while spend in the finance category decreased.
Agency’s share of content publishers inventory increased for the quarter across standard display, infeed, and video advertising. While programmatic trading and agencies buying via an IO still dominate the buying methods, this quarter showed the steady shift in towards programmatic guaranteed deals is continuing, overtaking direct sales.
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