Online advertising spend was up 12.1 % to $4.2 billion in the September quarter compared to the same three months last year, according to data released today in the IAB Australia Internet Advertising Revenue Report prepared by PwC Australia.
Robust growth was reported in video, classifieds, search & directories and audio.
The video market, boosted by strong Olympics activity, increased 19.5% to $1.15 billion.
Classified expenditure was up 13.8% to $700 million.
Search was up 9.8% to $1.8 billion and represents 43 cents of each dollar of internet expenditure.
Audio advertising increased by 16.2% to $79 million, while display advertising increased just 2.5% to $500 million.
"While the advertising investment market is still mixed, the strength of an audience engagement driver like the Olympics can have a major impact on ad spend and for the September quarter this was a key contributor to the year-on-year growth for video inventory," said Gai Le Roy CEO of IAB Australia.
"Search and social continues to experience solid growth, putting the calendar year for the digital ad market on track for low double-digit growth.”
Video advertising overtook audio as the fastest growing general display sub sector this quarter, thanks to the Summer Olympics spend.
Desktop devices significantly increased its share of the video advertising expenditure to 45%, while connected TV spend slipped back to 44% and mobile video share of spend also decreasing to 11%.
Video displayed on social platforms now represents one third of total video expenditure. Within audio internet advertising, podcast advertising had a strong quarter, increasing its share of total internet audio advertising to 40%, representing a 26.5% increase year on year.
Retail maintained its hold on general display advertising expenditure, with travel, finance and entertainment also seeing increased spend.
Automotive stayed in the top five general display industry categories despite a decrease in its share against the September 2023 quarter.
The telecommunications experienced the largest increase in share this quarter following the launch of new mobile devices, while home products, services and utilities showed the strongest preference towards video advertising.
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