Online advertising in Australia grew 10%  in the September quarter to $813.25m – and is on track to exceed both newspaper and TV advertising spend in 2013, according to the latest IAB/PwC report. Search and Directories is the dominant online advertising sector with 53% share of spend, and also the most dynamic with 15% growth.

Classifieds ads were up 7% for the quarter, while General Display was flat with 1% growth.

Mobile advertising grew 24% quarter on quarter to $22m, while email advertising almost halved – falling to $5.8m in Q3 2012 from $10.5m in 2011.

“It’s clear that the search by marketers for new ways to engage with consumers is fueling mobile advertising growth rates,” said Maria Martin, Partner at PwC.

CPM is now the dominant pricing methodology, with 62 percent of general display advertising expenditures, and 38 percent being direct response based.

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