Australian Online Advertising Spending Surged in 2015

Online ad spending in Australia is on the rise as marketers tap into an increasingly digital consumer audience. The International Advertising Bureau and PricewaterhouseCoopers released Online Advertising Expenditure Report on Wednesday, which revealed total spending reached $5.9 billion in 2015; a 24 percent increase from 2014.

“This is an outstanding result for the industry,” said IAB Australia CEO Alice Manners. “When the IAB first started recording online ad expenditure just nine years ago it was at $1.3 billion and today we are poised to break the $6 billion barrier.”

Mobile advertising also experienced massive growth in 2015, surging to $1.55 billion from just $695 million in in 2014. Of this total spend, smartphones comprised 65 percent, while 35 percent was dedicated to advertising on tablets.

Tapping into the Always-On Lifestyle

Advertising spend in Australia rises alongside the country’s increasingly connected consumers. As Signal’s most recent infographic illustrates, purchases of smartphones and tablets have increased 38 and 78 percent since 2013, respectively. As a result, Australians spent 164 minutes daily on the Internet in 2015, which was a 19 percent increase from 2012.

Marketers in Australia view the connectivity of their customers as a valuable opportunity to reach them through the most relevant channels. In fact, in 2015, Australian marketers had the highest digital ad spend per Internet user in the world. And this trend will continue: By 2018, Australia is set to become one of the first countries in the world where more than 50 percent of its total ad spend is invested in digital channels.

Marketers Must Succeed at Engagement

As advertisers continue to invest their budgets in online media, customer engagement and relevance are both integral to using this spend effectively, especially in the face of growing viewability challenges and adoption of ad blockers. Our infographic reveals 82 percent of Australians prefer tailored ads. This translates to a challenge marketers face to effectively target their ads toward consumers who have already transacted with them.

To gain more value from their digital investments, Australian marketers should tap into technology solutions that enable better addressable media. As budgets continue to grow and consumers become more device-oriented, people-based marketing has the power to help advertisers in Australia spend their ad dollars more efficiently.



Originally published March 11, 2016

Warren Billington

Warren is the former Managing Director for Australia, New Zealand, and Southeast Asia.

Subscribe for Updates