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Programmatic spend on the rise in Australia but lockdowns impact growth

The automotive and travel sector saw declines, due to supply challenges and lockdowns

The digital advertising market in Australia is on an upward trend, reaching $3.232bn for the September quarter of 2021, up 42.1% year-on-year.

There was double-digit growth across the board, with search and directories increasing 41%, general display increasing by 45.6%, and classifieds up 37.3%, according to IAB Australia’s “Online Advertising Expenditure Report (OAER)”.

However, the total market dipped by 1.3% on the prior quarter due to the return of Covid-19 pandemic lockdowns.

“The September quarter had a mix of highs and lows with Olympics activity encouraging investment but the travel market pulling back again with local lockdowns,” said Gai Le Roy, chief executive officer of IAB Australia.

“Overall though investment in digital advertising market continued to impress, with the September quarter increasing 42% on the Covid impacted September 2020, but also increasing 36% compared to the 2019 September quarter.”

What does the report find?

  • The top advertiser category continues to be retail advertising as 14.4% of spending went to display investment and video advertising. The largest increase of 7.8% went to the technology sector advertising.

  • The automotive and travel sector saw declines, due to supply challenges and lockdowns.

  • Video advertising’s share of general display advertising peaked this quarter at 62%, an increase of 72% year-on-year to reach $784.1m.

  • In-feed/native advertising grew 30% year on year, while standard display advertising fell 21% year on year.

  • Programmatic trading of content publishers inventory again increased in the September quarter, delivering 45% of the total expenditure, versus 40% bought through agency insertion orders.

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