Mobile leads the way as digital advertising continues to grow according to independent industry report

SYDNEY, 1st May 2017: Digital advertising spend has continued its inexorable climb reflecting increasing consumer consumption of digital formats, reaching 48.6% of all advertising spend for calendar year 2016, up from 42.5% in 2015, according to the 2016 Report from CEASA (Commercial Economic Advisory Service of Australia).  The CEASA report is the only industry report to capture ad revenue from all major paid media channels, using authorised data sources from industry bodies including ThinkTV, Outdoor Media Association, IAB Australia and Commercial Radio Australia; as well as data from all agency groups.

Download the CY 2016 Australian ad market Infographic here.
 
Gai Le Roy, Research Director at IAB Australia commented:  “As the stakes increase it is important that cools head prevail and we rely on independent data from organisations such as the CEASA for media planning decisions rather than from incomplete sources. To understand the whole media market we must have data on direct advertiser spend and not just selected agency data. Without this we are missing almost all SME advertising spend as well as that of the larger advertisers that are taking more of their buying and planning in-house.”
 
Traditional FTA TV spend dropped from 24.0% to 21.6% of total ad spend in 2016 according to CEASA, however ThinkTV has recently reported a shift to digital formats, noting that AVOD (video on demand) spend increased 48% year on year.

Mobile advertising, a subset of the digital advertising spend, increased to 15% of the whole paid media market in 2016 up from 11% in 2015; while digital video also continued to grow, representing 5% of the total ad spend in 2016 up from 3% in 2015
 
CEASA ad spend data versus SMI data at a glance:

  • CEASA includes ad revenue from all major paid media channels, using authorised data sources from industry bodies including ThinkTV, Outdoor Media Association, IAB Australia and Commercial Radio Australia; including spend from both agencies and direct advertisers.  Data is released bi-annually with January to June data released in September; and July to December released in April.
  • SMI includes ad revenue from most large media agency groups but excludes all IPG Mediabrands agencies including UM, Initiative, Cadreon and Ansible.  SMI does not include any direct advertiser spend.  Data released mid-month the following month with incomplete digital data.  The second release of data with additional digital data is issued at the end of the following month.

Vijay Solanki, CEO of IAB added, “The latest consumer data shows that over 20million Aussies are online and 15million are on their mobiles.  As consumer penetration increases and immersion deepens, it’s inevitable that smart marketers would want to follow.  All the data suggests that deepening consumer immersion into mobile and video will continue to drive revenue.”
 
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About the Interactive Advertising Bureau 
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 43 IAB offices globally, and with a rapidly growing membership, IAB Australia's principal objective is to support and enable the media and marketing industry to ensure that they thrive in the digital economy.
 
The role of the IAB is to work with its members and the broader advertising and marketing industry to assist marketers to identify how best to employ online as part of their marketing strategy, to better target and engage their customers and build their brands.
 
By addressing the core pillars of growth of the online advertising industry - simplified and standard online audience measurement, research, and online operational standards and guidelines, and regulatory affairs, IAB Australia leverages the skills, experience and commitment of its members to advocate the benefits of online advertising by acting as an authoritative and objective source for all online advertising issues whilst promoting industry-wide best practice.
 
IAB Australia is a registered not-for-profit organisation; membership fees and revenue generated is invested back into the IAB's membership benefits such as resources, events, reporting, and industry representation.
 
For further information about IAB Australia please visit: www.iabaustralia.com.au
 
For further information please contact:
 
Vijay Solanki
CEO - IAB Australia
E: Vijay.Solanki@iabaustralia.com.au
  
Pru Quinlan
Einsteinz Communications
T: (02) 8905 0995
E: pru@einsteinz.com.au