The Australian online advertising market neared $13bn in calendar year 2021, showing 35.8% growth on 2020, according to data from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC.
It follows two years of slower growth for the industry, at 2.4% for 2020 and 5.6% for 2019
Video advertising retains the crown for the format driving the most growth in the market, up 48% year on year to reach $2.88bn.
However, Classifieds which had been the hardest hit digital advertising revenue stream over the last couple of years, had a strong bounce back in 2021 increasing 41.5% compared to 2020 to reach $2.2bn.
General display advertising was up 38.2% to reach $5.1bn, while search and directories increased 31.7% to reach $5.7bn.
Gai Le Roy, CEO of IAB Australia: “The exceptional growth in the Australian digital advertising market in 2021 has been driven by a combination of two key factors.
“Businesses have accelerated their digital transformation and investment over the last two years, but we’ve also seen a resurgence in marketing spend by businesses to drive economic growth as we exit COVID lockdowns and restrictions.”
Retail retained the number one advertiser category for the full year, representing 16.3% share of the general display market up from 15.6%. The auto category dropped back in share yet again to 10.7% from 12.9% in 2020, however there are indications of slightly stronger auto investment in early 2022.
Although the overall share of investment in content site inventory via programmatic didn’t experience a major change for 2021, with total programmatic spend stable at 42%, investment via programmatic guaranteed (PG) increased significantly, reaching 13% in 2021, up from 11% in 2020 and just 7% in 2019.
December Quarter Results
- Online advertising revenue for the final quarter of the 2021 calendar increased 21.3% compared to the December quarter in 2020, to reach $3.58B.
- Classifieds bounded back with an increase of 43.4% supported by a strong employment, real estate, and second-hand car market.
- The general display market was worth $1.47B up 21.3% versus the comparative quarter in 2020. Video inventory represented 55% of all money invested in the general display category and was up 25% versus the December quarter in 2020.
- Connected TV represented 43% of content publishers video investment followed by desktop on 32% and then mobile at 25%.
Travel industry ad spend picked up in the December quarter to reach 4.5%, almost doubling the share in Dec 2020, but still at half of the spend share it had in 2019.
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