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Australia online ad spend reaches A$2.65bn

IAB says we really love video ads

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Australian online advertising recorded its biggest ever spend in the last quarter, peaking at $A627.75m, a 22 per cent increase from the Q4, 2009. Total online advertising expenditure for 2010 was $A2.265bn, according to the IAB Australia Online Advertising Expenditure Report (OAER).

IAB Australia says the market is on track to reach $3bn by 2012. Search and directories advertising took the lion’s share of spend at 50 per cent of total expenditure for the year ($1.1bn), followed by display advertising at 27 per cent and classifieds at 23 per cent. Cars, money, shopping and beauty are key sectors driving the online display ad spend.

Australians are watching nearly 1 billion videos online each month, driving the demand for rich content and associated advertising. Video based advertising continued to strongly increase, with total advertising spend of $A9.7m in Q4, representing 83 per cent year-on-year growth. The total ad-spend for video advertising in 2010 was $A33.4m.

According to Paul Fisher, CEO of IAB Australia, “consumers’ voracious appetite for content, services, social connection, search and video online is growing dramatically every year". Fisher continued: "We are experiencing a structural shift in Australia and globally in the advertising and marketing industry as advertisers and agencies restructure their organizations and their budgets to better equip themselves to reach, engage and influence their customers online.” ®

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