Mobile Ad Spend Exceeds TV Ads in Australia

Posted by Mark Chapman MSc, MBA on September 29, 2016

This year, for the first time, mobile ad spending will exceed outlays on TV in Australia, according to eMarketer’s latest worldwide ad spending forecast. 2016 mobile ad spending will total $2.71 billion, or 25.3% of total media ad spending in Australia. Meanwhile, TV ad spending in the country will amount to $2.58 billion, or 24.2% of the total.

“Digital and mobile ad spending saw stronger-than-expected growth in 2015, driven by a significant increase in digital video advertising,” said eMarketer forecasting analyst Shelleen Shum. “Australia boasts one of the highest smartphone and tablet penetration rates in the Asia-Pacific region and ad dollars have followed consumers’ eyes to mobile.”

eMarketer has lowered its growth projections for TV ad spending and increased its estimates for digital, including mobile, spending since its last forecast. This is because data from some of the commercial TV networks showed lower-than-expected growth due to the growing popularity of various subscription video-on-demand (SVOD) services launched this year and last.

Digital vs. Mobile* Ad Spending as a Percent of Total Media Ad Spending in Australia, 2015-2020

“Traditional TV is facing strong competition from digital streaming subscription alternatives like Netflix that have appealed to consumers who are drawn to the ability to stream content anywhere, on-demand,” added Shum.

Next year, digital will account for more than half of all ad spending in Australia, or $6.94 billion. By 2020, eMarketer estimates, this share will have risen to more than 57%.

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