By Luís Daniel Rijo in Video News — Apr 8, 2019

Australian online advertising market hit $8.8bn in 2018

The Australian online advertising market hit $8.8bn expenditure in calendar year 2018, an increase of 11.6% on 2017 according to the IAB Australia Online Advertising Expenditure Report (OAER) published last month by PwC.

IAB Australia says these are strong results for the digital advertising market in 2018 is underpinned by the continuing shift in consumer media consumption. Australians now spend nearly 100 hours a month on desktop, smartphone and tablets and nearly five million people access internet content on their TV screens daily.

For the full calendar year 2018, the General Display Advertising category experienced considerable growth, reaching $3.3bn for the year, a 15.8% increase on 2017. This places the category at 37% of total online advertising – the strongest share of the overall online ad market to date. Search and Directories hit $3.9bn for 2018, a 9.2% increase, while Classifieds increased 9.5% to reach $1.6bn spend in 2018.

For the quarter ending 31st December 2018, the General Display Advertising category grew 5.4% to a market total of $2.3B and according to new data points captured in the OAER report for content publishers for the first time,

According to IAB Australia, 51% of the General Display inventory was bought via media agencies using either an insertion order or another non-programmatic method. Of the balance, 34% of general display advertising was bought programmatically with either fixed CPM or guaranteed inventory (9%) or a variable CPM based on real time bidding via an exchange or private market place (25%), while 9% of all display advertising was bought directly.

23% of video advertising revenue is already on connected TV

In Q4 2018, 23% of video advertising revenue for content websites was generated by connected TV inventory, while 48% of video advertising revenue for content websites was via desktop; and 29% via mobile video advertising.

“Marketers continue to reinvest their budgets in a range of digital advertising options because they know it helps grow their businesses. 2019 will see the IAB demonstrate to marketers how they can increase the effectiveness of their spend across a wide range of digital formats and how it can work together efficiently with other media channel investments.”Gai Le Roy, CEO of IAB Australia

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23% of video advertising revenue is already on connected TV

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