Digital Advertising Surpasses $7B in 2016

Sydney, 13th March 2017: Underpinned by solid growth across Display, Search and Classifieds, online advertising expenditure has grown to $7.4 billion in calendar year 2016, a 23 percent gain on expenditure in CY15. Results for 2016 and quarter ending Dec 31 2016 have been released in the latest publication of the IAB/PwC Online Advertising Expenditure Report. The full report is available for IAB Australia members.

 2016 again saw the largest growth seen in Display, bolstered by strong gains in video and mobile advertising, even while desktop display dipped due to shifting consumer device habits. The Video segment of the General Display market was the fastest growing area of digital in CY16, representing 28 percent of digital General Display. Search and Directories remains the largest sector in online advertising, representing just under half of all digital advertising dollars.

The quarter ending Dec. 31 2016 showed growth of 15.3 percent to reach $1.97 billion. Despite a 4.6 percent increase on the previous September quarter, the market did not experience the normal level of seasonal growth expected for the December quarter. In part this was due to retail’s share of digital display spend remaining flat, though overall, retail increased with the growing market and the total ad spend was still up on the previous quarter and year.

The December quarter saw shifts in device expenditures, with the tablet share of device revenue dropping as advertisers move more money into smartphones to shadow changing consumer device habits.


Members can view the Online Advertising Expenditure Report here.

Members can view the latest Device Ownership and Trends report here.

Information on becoming an IAB member is available here, or by emailing annette@iabaustralia.com.au.

For further information about IAB Australia please visit www.iabaustralia.com.au.