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NZ Online advertising grows 23% to $41 million in Q3
Auckland, Tuesday November 27th, 2007
Online advertising grew sharply again in Q3 according to figures released today in a report from the Interactive Advertising Bureau and PricewaterhouseCoopers.
Download a full copy of the report here
Overall growth of 22.9% from Q2, 2007 takes the total spending for interactive/online advertising to $98.6 million for the year to date. The total for the year to the end of September 2007, suggests spending for the whole year is likely to exceed $120 million according to IABNZ.
Display advertising was the fastest growing category, with growth of almost 40% over Q2 figures. But Search & Directories, and Classified advertising also grew strongly from Q2 to Q3 with growth rates of 15.5% and 21.5% respectively.
Mark Evans, CEO of IABNZ, says “We’ve been saying this market’s growing at a phenomenal rate, now we can see just how fast. With the release of the first report, we saw big increases from Q1 to Q2. This latest report shows even bigger increases between Q2 and Q3”.
Evans says that the increase in spending to $41 million in Q3 was not a complete surprise. “Q3 has always traditionally been to heaviest quarter for online spending in New Zealand, but we didn’t know until now how big it was. I suspect Q4 will probably not be quite as high as Q3, but we’ll know for sure in a couple of months when the next report is released – that’s the great thing about having a quarterly report in such a dynamic, fast growing market.”
Lee Williams, IAB Chairman, and Head of ACP Digital, says the growth in online advertising is staggering and exciting. “You have to remember that these growth rates are quarter-on-quarter! In any other market you’d be happy with annual growth this good”, he says.
Williams says publishers have been expecting growth at this level for a while, as the New Zealand online advertising market plays catchup with international markets. “But you have to remember”, he says, “while New Zealand is catching up with the rest of the world, online advertising in those countries is growing at double-digit levels as well. So I expect this growth we’re seeing will be sustained for quite some time to come yet.”
John Deane, Director at PricewaterhouseCoopers, and project leader on the IAB/PwC reporting team says he’s pleased to see additional media companies contributing to the Q3 data collected. “In the Q3 report we’ve included these new contributors, but “normalised” the growth rates to make sure that the growth we’re reporting is true quarter-on-quarter growth.” Deane says the number of contributing companies, and sites represented means that the IAB Insight report represents a huge portion of the total New Zealand market.
The next IAB Insight report, covering Q4, 2007, will be released in mid to late February 2008, and will cover the total online advertising figures for 2007.
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Contacts
IAB
Mark Evans
CEO
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m: +64-21-494 850
Lee Williams
Chairman
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m: +64-275-533 660
PricewaterhouseCoopers
John Deane
Director
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m: +64-29-415 8220
Chris Perree
Partner
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m: +64-21-358 004
