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Online ad spend up 18 per cent in 2012

27 Feb 2013

Total online ad spend was $3.3 billion in the 12 months to December 2012. This exceeded a previous forecast by PwC which had put the figure at $3.04 billion for the year. PricewaterhouseCoopers and IAB Australia have released figures on Australian online advertising spend which increased 18 per cent to hit $3.3 billion in 2012, fuelled by mammoth growth in mobile and digital.

Mobile advertising saw an uplift of 220 per cent to $86.2 million while video increased 30 per cent to $90.3 million.

IAB director of research Gai Le Roy said: "The inexorable rise of mobile, video and search is showing little sign of abating and we are delighted that the online industry is continuing to beat all reported market predictions about lower growth rates.

"While mobile is currently experiencing a surge, we expect it will settle onto strong and sustained growth rates, just as general online advertising expenditure did in 2000 after an extraordinary period of growth."

Based on figures from publishers, IAB said 58 per cent of mobile ad spend was allocated to smartphones while 42 per cent was to tablets in the fourth quarter of 2012. Fifty-six percentage of mobile ad spend was dedicated to general display while 44 per cent was spent on search.

Search and directories still claimed the lion's share of the online industry with $1.79 billion in spend and grew four share points to 54 per cent. Search and directories increased 27 per cent in revenues.

General display grew 10 per cent to $876 million while classifieds increased 9 per cent to $673 million.

Source: AdNews

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