Online advertising softened in the first quarter of 2019, falling 4.3% against the December quarter, but spending was still up 4.9% to $2.2 billion compared to the same three months last year, according to numbers from IAB.
The IAB Australia Online Advertising Expenditure Report (OAER) published by PwC showed video advertising up 15%, mobile 26% and classified advertising 7% with growth across recruitment, real estate and automotive.
“There is little doubt that the advertising market is tough across all platforms, but within the breadth of digital advertising there were still bright spots," says Gai Le Roy, CEO of IAB Australia.
"The classifieds sector again had a strong March quarter and the display market saw an increased share for government/political spend which will continue into the June quarter numbers. Yet again video continues to gain share in the display sector."
The IAB numbers at a glance:
Adland has been reporting tough trading conditions. Numbers from media agencies show seven straight months of ad spend decline. The April fall for SMI was double digits at 18.1%, according to preliminary figures.
But many in the industry are expecting a bounce in ad spend following the end of the federal election and the re-election of the Coalition Government.
The March quarter IAB numbers show search and directories maintaining overall share of online advertising expenditure at 44% to reach $977.6 million for the three months. Classifieds reached $426.2 million, a 20% share, and general display advertising is now 36% of spend at $799 million.
Video represented the largest share of general display expenditure at 46%, followed by content, native and in-feed at 35% and standard display formats at 18%.
Media agencies were the preferred buying method for display advertising viewed on publisher inventory with some 58% bought via media agencies via an IO / non-programmatic method.
For general display advertising, 29% was bought programmatically with either fixed CPM and guaranteed inventory (6%) or with a variable CPM based on real-time bidding via an exchange or private market place (23%). The share of general display advertising bought programmatically decrease 5% compared to the prior quarter.
The report also found that 32% of video advertising expenditure for content publishers was driven by viewing via a connected TV in the March quarter, with 39% viewed on a desktop and 29% via mobile.
Automotive, Real Estate and Finance lead the General Display advertising market revenue, representing 37% of the reported General Display advertising market for the March quarter.
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