Online ad revenue passes $800m in 2015

Interactive advertising generated more than $800m in revenue last year, according to the Interactive Advertising Bureau’s (IAB) latest ad spend report (see the ASA's most recent annual report for total advertising spend across online, TV, newspapers, radio and other media here).

Total spend across all interactive channels increased 31% on 2014’s figures, largely due to a huge spike in mobile, social and search/directory spend. Interactive – or digital – advertising is any ad viewed on a screen via an internet connection.

Search grew 31% year-on-year and holds the largest slice of the interactive advertising pie with a 56% share.The biggest revenue growth was seen in mobile, which generated $123m with a sharp increase of 122%.

“Overall, mobile advertising expenditure now makes up 3.4% of total online advertising expenditure and continues to present an open goal for marketers,” an IAB spokesman says.

Perhaps surprisingly given industry scorn, banner and display advertising increased its revenue, growing by 16% on last year’s figures to reach $145m.

Video spend increased overall but, in the last quarter of 2015, fell 2% short on the previous year’s fourth quarter.

An interesting figure, given every mainstream media organisation in this country – MediaWorks, TVNZ, Fairfax and NZME – bolstered their video capabilities at the tail end of 2015.

Programmatic on the rise
Programmatic advertising – the automation of online ad purchasing via a self-service auction system – continued to increase its revenue stream by more than 100%, garnering $22.8m last year.

The practice is ramping up in this country. NZ’s first advertising exchange launched in November last year, bringing together four of this country’s top publishers: NZME, Fairfax, MediaWorks and TVNZ.

The Kiwi Premium Advertising Exchange (KPEX) allows clients and brands the opportunity to purchase inventory across all participating publishers in one transaction.

It recently hired its first permanent chief executive, ad man Richard Thompson, and is gearing up for further expansion.

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