Image credit: Markus Winkler, Unsplash
The Australian digital advertising market enjoyed a strong comeback in Q4, recording a 29.7% growth from Q3 to reach $2,935 million and a 20.3% year-on-year increase from the same quarter in 2019.
The IAB Australia Online Advertising Expenditure Report shows that all advertising categories have achieved growth for the second consecutive quarter as the industry rebounds after the pandemic induced declines earlier in 2020.
“Digital advertising saw a robust comeback in the second half of the year with an extraordinarily strong December quarter with marketer demand flowing across all inventory types,” said Gai Le Roy, CEO of IAB Australia.
“The combination of delayed marketing spend, traditional seasonal uplift, news of a COVID vaccine and increased consumer online media & commerce behavior all contributed to the stellar quarter.”
Both general display and search showed strong year-on-year growth up 26.8% and 21.1% respectively. The strong investment in display lifted its share of the digital ad spend to 41% compared to 39% in December.
All display formats saw an increase compared to the prior year showing strong diversified investment for the quarter. Again, video advertising investment led the way with a 41% increase compared to the same quarter last year.
Advertising by retailers held a record share of display investment representing 18.5% of the market compared to 11.7% for the prior year. Investment by auto advertisers continued to lag the rest of the market with share from 23.7% in 2018, then 14.7% in 2019 to 10.8% in 2020.
Total investment in digital advertising for 2020 reached $9.5 billion, up 2% from 2019.
Growth was suppressed by the impact of the pandemic on classified listings revenue, which declined 7.3% year-on-year. However, the display market saw a 5.4% increase supported by another strong year for digital video investment, which was up 17.2%.
Search advertising rose 2.8% to reach $4.3 billion which represents 45% of the total digital ad market. Content publishers saw more of the inventory purchased through programmatic methods with programmatic RTB, PMP, and guaranteed representing 44% of display revenue generated in 2020 compared to 36% in 2019.
CTV share of video continued to increase, up from 35% to 45% of content publishers’ video investment in 2020 compared to 2019.
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