Digital advertising growth highlights platform dominance

Digital advertising surges 8.6% in FY24 as search and display reach $12.4bn, entrenching platform market power.

David Kennedy · Venture Insights6 September 2024Period: FY243 min read

$14.9bn↑

Total Australian digital advertising spend (FY24)

10.1%↑

Growth rate of search advertising (FY24)

Locked

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Abstract

The Internet Advertising Bureau (IAB) Australia published data on digital advertising spend this week. The full year figures show strong digital ad growth, led by search and display. This data will be ammunition for those pushing the federal Government to enforce the news bargaining code, and rein in platform economic power more generally.

Key Takeaways

Australian digital advertising spend grew 8.6% to $14.9bn in FY24, outperforming the broader sluggish economy.
Search and display remain the primary growth engines, reaching $6.9bn and $5.5bn respectively.
Video advertising is the dominant display sub-sector, growing 18.6% to $4.1bn when including BVOD.

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Frequently Asked Questions

Digital advertising spend grew 8.6% to $14.9bn in FY24, significantly outperforming the broader sluggish Australian economy. Growth is concentrated in search and display, which reached $6.9bn and $5.5bn respectively.

Video advertising is the primary engine within display, expanding 18.6% to $4.1bn. Conversely, non-video display advertising spend contracted by 1.1% in FY24, signaling a decisive shift in advertiser preference toward high-engagement formats.

The competition has shifted to the home television set, with Connected TV now accounting for 55% of all video inventory spend. This dominance in the living room is a key factor in the overall 18.6% growth of the video sub-sector.

The $14.9bn total spend provides the Australian Government with critical evidence to enforce the News Media Bargaining Code against dominant platforms. This follows Meta's refusal to renew news compensation agreements, which directly threatens the viability of local news reporting.

Digital advertising growth highlights platform dominance

Abstract

Key Takeaways

Frequently Asked Questions

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