Singapore – Online advertising has continued to grow despite the challenging economic conditions, reaching $3.732b for the Q3 2023, according to data which was drawn from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC, showing how online advertising increased by 7.8% year-on-year and 2.1% over the preceding quarter.
Specifically, the data suggests that total expenditure by category in Q3 2023 quarter was $1.630b for search and directories, $1.451b for general display and $649.2m for classifieds.
Furthermore, general display advertising increased 2.7% over the June 2023 quarter and 8% year-on-year from the September 2022 quarter. Search and directories also softened by 1.6% from June 2023 but increased 10.6% year-on-year from September 2022.
Within general display advertising, audio advertising expenditure recorded no growth quarter over the June quarter reaching $68m for the September quarter, but it increased 16.2% year-on-year from September 2022. Video advertising recorded a 5% growth quarter-on-quarter to reach $968.1m for the September quarter and 15% growth year-on-year from September 2022.
Additionally, the retail, automotive, and health & beauty sectors all reported strong growth in Q3 2023, with retail reaching 17.1% share of general display advertising, automotive increasing to 15.4% and health and beauty reaching 7.9%. Finance (8.7%) and FMCG (5.7%) remain in the top five industry categories for expenditure.
Lastly, connected TV continues to yield the greatest share of content publisher’s video inventory investment, increasing from 45% in Q2 2023 to 54% in Q3 2023 buoyed in part by Women’s Football World Cup activity. Desktop reduced from 38% to 25% in the same period, while mobile investment increased from 17% to 21%.
Talking about these results, Gai Le Roy, CEO of IAB Australia, commented, “It is encouraging to see marketers continue to invest in advertising to drive growth. However, investment in different media environments was not universal and the market was tough for many organisations.”
“Retail continues to be the number one advertiser category with investment from local and global retailers. It is also pleasing to see the uplift in automotive advertising with the share of spend in the general display category above 15% for the first time since September 2020,” she added.
