Digital ad market worth $13.9bn in FY22, up 22%, but IAB Australia says market slowing

News 5 Sep 2022 - 3 min read

Digital ad market worth $13.9bn in FY22, up 22%, but IAB Australia says market slowing

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IAB Australia's CEO, Gai Le Roy.

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Tags: IAB Gai Le Roy

The online advertising market grew 22 per cent in the 2022 financial year, IAB Australia says, fuelled by a Federal election and Olympic Games events. Classified ads surged, as did video advertising. But growth has begun to slow.

What you need to know:

The digital advertising market was worth $13.9 billion in the year to June 30, per IAB Australia. But the organisation signalled growth has begun to slow.
The June quarter saw growth slow slightly to 10.6 per cent – slower than the previous three quarters, IAB CEO Gai Le Roy said.

Australia’s digital advertising market grew 22 per cent to reach $13.9 billion in the year to June 30, 2022, per IAB Australia figures.

The IAB’s Online Advertising Expenditure Report, prepared by PwC, found a Federal Election and the summer and winter Olympic Games meant all online categories jumped by double digits. But there are signs the growth is slowing.

Top-line figures:

General Display - $5.4bn, up 21.8 per cent on FY21 (39 per cent share).
Classifieds - $2.4bn, up 30.1 per cent on FY21 (17 per cent share).
Search and directories – $6.1bn, up 19.1 per cent on FY21 (44 per cent share).
Mobile - $7.1bn, up 15.6 per cent on FY21.
Video - $3.1bn, up 30.8 per cent on FY21.

“Although revenue for the Australian digital advertising market in the June quarter was softer than the previous three quarters, growth was still robust at 10.6 per cent,”

Gai Le Roy, CEO of IAB Australia said.

“There were strong results across the market for the financial year, with growth of 22 per cent versus 2021, buoyed by investment for the Olympics, Federal Election, and an incredibly strong bounce back for classified listings.”

In the quarter ending June 30, online advertising was worth $3.631 million – a 10.6 per cent increase on the June quarter in 2021.