FMCG brands leading the way with digital video to deliver brand uplift

Data from IAB PWC Online Advertising Expenditure Report shows screens are king

Sydney, 30 November, 2016: Total online advertising spend continues to grow, reaching just over $1.88 billion for the three months ending 30 September 2016 according to the latest PwC/IAB Online Advertising Expenditure Report.  The industry growth represents a 3.7 percent gain on last quarter and a 20.3 percent gain over Q3 2015.

The data is in line with the recently released Commercial Economic Advisory of Australia (CEASA) report which showed digital media represents over 48 percent of the total Australian expenditure for the first half of financial year 2016.

(Members can download the Report here.)

The PwC/IAB report shows that FMCG advertisers are continuing to shift their attention to digital video responsible for 23.5 percent of total video expenditure and spending almost three-times as much on video as General Display advertising (8.2 percent).  This shift in spend has been validated by Nielsen in its recent Pathmatics Q3 data, which reported Kimberly Clark, Unilever and Proctor & Gamble as the top FMCG advertisers in the digital video market.  

“The dominance of FCMG in video shows marketers are warming to the longer term effects of cross-device, and even cross-media campaigns that are underpinned by digital video,” said IAB CEO, Vijay Solanki.  “Marketers understand relationship building and its value and they are re-investing dollars where they can realise strong, measurable ROI and brand recall. The spend on digital video in these major industry categories speaks volumes in that regard.

“Screens deliver video and personalised, optimised experiences,” said Solanki. “We’ve seen almost two-thirds of the market going to screens, with digital also strengthening the outdoor ad industry.  Digital video can drive brand uplift in a targeted, immersive and measurable way. It can put the right creative on steroids.”

The PwC/ IAB report showed that all digital advertising categories experienced strong growth in the quarter against the comparative 2015 quarter, with Classifieds up 13.4 percent, Search and Directories showing a 22.8 percent increase and General Display increasing 21 percent.

Expenditure on mobile advertising grew to reach $570.7 million in the September quarter, a five percent increase on last quarter and a 56.6 percent jump compared to Q3 2015. Smartphones continue to attract a majority of the mobile dollars, making up 64 percent of the total mobile expenditure.

OAER FINAL CATS

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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:
 
Nina Nyman
Director, Marketing and Operations - IAB Australia
T: (02) 9211 2738
E:nina.nyman@iabaustralia.com.au
 
Pru Quinlan
Einsteinz Communications
T: (02) 8905 0995
E: pru@einsteinz.com.au