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The Australian online advertising market has reached a $14.2 billion spend in 2022, according to a report released by Interactive Advertising Bureau (IAB), the peak trade association for online advertising in Australia.
All categories saw year on year growth with general display growing 7.7% ($5.5B), search and directories 8.5% ($6.2B) and classifieds increasing by 14% ($2.5B). Meanwhile, video advertising increased 12% year on year to reach $3.3 billion.
The total advertising expenditure is a 9.1% increase from last year. This is a record high for the industry, even if it is a significant slowdown from the 36% growth rate reported in 2021.
Top advertiser categories
The top five advertiser categories in general display advertising remained consistent year on year, with retail, automotive and fast-moving consumer goods stable, entertainment share increasing slightly and finance share decreasing slightly.
“2022 had two distinct growth phases, with 15% for the first six months compared to 2021 and 4% growth in the second half of the year. Despite this slow down, we are seeing encouraging signs including automotive advertiser’s share of display advertising returning to levels not seen since early 2021,” said IAB Australia’s CEO Gai Le Roy.
Digital audio now commercially viable
The report also included audio data due to the collaboration between IAB and Commercial Radio & Audio (CRA). The report found that marketers spent $221.2 million in 2022, with streaming earning 63% and podcasting attracting 37%.
This is equivalent to $138.7 million for streaming, and a cool $82.5 for podcasting.
“Digital audio has emerged as a category following soaring growth in listener numbers and strong interest by advertisers and is now one of the most significant growth markets in Australian media. It’s great to be able to confirm with IAB that this market has grown so quickly from nothing to over $220 million in an incredibly short space of time,” said Ford Ennals, CEO of CRA.
Le Roy said the significant increases in digital audio advertisement convinced them to give it its own category.
“With the increase in investment in both streaming audio and podcasting advertising it was important that we have an accurate picture of the market and we are pleased to have digital audio spend now tracked as a category in its own right. In 2022 digital audio represented 4% of the total digital display market. Digital audio revenue, including both agency and direct investment dollars, will now be included in our regular quarterly reports,” said Le Roy.
Paulo Rizal is a content producer for Comms Room. He writes content around popular media, journalism, social media, and more.
