Search Still Dominates But Mobile on the Rise – Q2 IAB Digital Ad Spend Report

The Q2 2016 IAB NZ ad spend report is out and mobile advertising is the big mover again.

Digital had overall year-on-year (YOY) growth of 14% when compared to the same period last year; mobile leading the way with 65% growth.

Summary of Q2 2016 quarters results:

• $218.76m for the Quarter – largest Q2 Ever!
• 2016 Q2 — $218.76m  13.55% YoY growth 2016 H1 Revenue – $422.26m 11.34% YoY growth
• 2016 Projected Interactive Revenue — $850m to $900m
• Mobile is the fastest growing channel (but still lags behind US, UK and Australia)
• Online Video will soon account for 12.8% of the total Interactive ad spend market by 2017
• Mobile Internet advertising to overtake Desktop in 2017
• Mobile Internet consumption to grow 28% in 2016

Mobile may have had the biggest growth but Search & Directories still dominates with 54% and $118.8M in ad spend. While this channel may have slowed to 13% growth, that 13% growth is greater than the entire mobile ad spend.

In a chart that looks scarily like that of the growth of the Auckland housing market, digital ad spend has increased by around 250% over the last five years.

A closer look at mobile shows an 86% increase in ad spend on tablets.

Display Advertising is up slightly and, not surprisingly the Food, Government, Travel and Finance sectors lead the way in ad spend.

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