If your business is not currently across the digital space and you need further evidence of digital’s reign over traditional advertising channels, recent data from IAB’s Online Advertising Expenditure Report drives home the argument. For the year ending June 30th 2016, online advertising expenditure reached it’s highest year on year growth to date, growing by 29.7% to total $6.8 billion, driven by the rapid rise of smartphone and tablet advertising. The figures are broken down below:
General display advertising accounted for the biggest increase in advertising expenditure, increasing by 43.3% to reach $2.5 billion, which was the highest year on year growth of the segment since the beginning of the Online Advertising Expenditure report in 2003.Mobile and video, two components of the general display total, recorded the highest growth, with mobile ad spend up by 72%, pushing the $2 billion mark while video reached $600 million, up by 55% from the previous year. Search and directories and classifieds also experienced strong growth, with search and directories growing by 24% to account for $3.1 billion of the share and classifieds experiencing a 21% growth to reach $1.2 billion. Of note, mobile was the primary driver of advertising expenditure in the search and directories segment, 67% across smartphones and 33% for tablets. While the search and directories segment accounts for the largest share of ad spend, if the growth trends that we are seeing continue, display advertising will take over as the largest area of advertising expenditure in 2017. If you want to learn more about how digital can work for your business, contact the team at Bang Digital on 9328 7000 or click here.