NZ: Online advertising spend grows 14% year-on-year in the first quarter

Total online advertising spend in New Zealand for Q1, 2012 was $79.21m up $11.09m year-onyear. Display, Search & Directories and Classifieds continued to show growth year-on-year.

Classifieds leads this quarter, up 17% followed by Search & Directories with a 15% increase and Display at 9%.

“14%* is fantastic year-on-year growth for online ad expenditure. But don’t just take my word for it, if you compare how this stacks up with other media in NZ, television released their quarterly figures with 4% growth in the same period up $4.4m on the first quarter of 2011 vs $11.09m for online.” Alisa Higgins, General Manager, IAB New Zealand.

Online video ad spend increase by 21%* year-on-year while the Investment, Finance and Banking, Travel and Accommodation and Government departments, Services and Communities sectors continue to be dominant in the Display channel. This group represented 40% of the advertising market in Q1, 2012 (37% in Q4, 2011 and 36% in Q1, 2011).

“The Classifieds category was the winner in Q1 2012 with $26.3m increasing year-on-year by 16.57% and quarter-on-quarter by 10.44%. Classifieds advertising accounted for 33% of online advertising spend, taking share from both Display and Search & Directories (29% and 38% respectively). Display spend of $23.15m grew at 9.07% year-on-year demonstrating modest growth over the last three consecutive quarters. The Automotive category moved up to fourth place at 10.77% share of Display ad spend which is the highest ever share for this category in New Zealand. Beautiful rich media ads help car manufacturers showcase new features and benefits and video display advertising should see an increase in ad spend during 2012.” Liz Fraser, IABNZ Chair & General Manager MSN New Zealand

“This quarter’s spend highlights the continuing growth in online advertising with 14% total market year-on-year growth, featuring double digit year-on-year growth for Classifieds and Search & Directories, and Display with 9% growth.

A key driver for growth is the increasing popularity of social media platforms, with the advancement of technology and its exposure to more consumers. As the New Zealand market continues to embrace online advertising, educating advertisers on the relevance and benefits of online advertising is crucial.

This is particularly relevant with advertising agencies providing marketing packaged solutions that deliver across the various channels within online advertising. Advertisers are leveraging from the benefits of each respective channel to deliver their messages to a targeted audience. For example, the use of social media supporting the brand and image of a company while using mobile advertising and location specific applications to deliver advertising to the customer.” Chris Perree, Partner, PwC.

Across the ditch, Australia grew 19% year-on-year while also experiencing increases within all the channels. While Search & Directories and Display lost some share to Classifieds this quarter in NZ, in Australia, both Search & Directories and Classifieds took share from Display.

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Note: some percentages have been normalised due to new contributors


Posted on May 16, 2012 - 01:36 PM