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Online advertising in New Zealand experienced one of its biggest year-on-year increases since 2008
Total online advertising spend in Q3, 2011 was $88.74million (m) up 26.5% year-on-year and up 5.3% from Q2, 2011 ($84.15m).
All channels experienced year-on-year growth: 
- Search & Directories up 53.4%;
- Classifieds up 14.6% and
- Display up 6.8%.
Alisa Higgins, IABNZ General Manager says, “Cross media efficiencies, online video, social media and internet access from mobile devices are some of the main factors driving this growth. IABNZ is predicting total online ad spend to grow to $398m by 2013 and increase its current market share from 12% to 19%.”
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Liz Fraser, IABNZ Chair & General Manager MSN New Zealand says, “The momentum is strong for annualised total online ad spend growth to reach 22% year-on-year. That’s an enormous increase considering the volatility in global markets and the Rugby World Cup having such an impact across many sectors. Growth in digital advertising demonstrates the strong return-on-investment offering for advertisers and with many publishers offering integrated client solutions this escalation will continue well into 2012.”
Almost half the Display spend comes from four sectors which make up 46%:
“For the first time since the PwC IAB report has existed, Q3 Display revenue contracted from the previous quarter. The global financial situation and the Rugby World Cup (RWC) have played significant roles in this spend reduction in online display advertising.
The European financial worries impacted the largest industry category of Investment, Finance and Banking, which reduced share on Display advertising by 17% compared to Q3 last year.
The RWC effect brought historical Q3 spend levels forward into Q2 for some categories, such as Travel and Accommodation which decreased share by 10% from Q3 2010 to Q3 2011.
For others, it was all about being in-market during the RWC, with Leisure, Entertainment and Media share growing a massive 45% from Q3 in 2010! For the Telecommunication category, who dropped their share 22% from Q3 2010, perhaps they decided that consumers were too focused on the games to consider changing mobile or ISP providers during the RWC!” Laura Maxwell-Hansen, General Manager, Yahoo!New Zealand and IABNZ Vice Chair.
Search & Directories is still the channel leader with a 43% share of total online ad dollars increasing from 41% in the last quarter taking share from Display and Classified:
“Online advertising is continuing its exceptional growth in the industry as shown by the Q3, 2011 total market figure of $88.74m, and the largest year-on-year increase since 2008. Total online advertising spend to date for 2011 is now $241m, which represents a remarkable 94% of the total 2010 spend. Advertisers are striving to stay relevant and engaging with ever more savvy consumers.
With the significant investment by the Government to increase access to high speed broadband across the country, the internet will be accessible to more consumers and at faster speeds, increasing the number of eyes viewing online content. Advertisers should analyse which platforms and technologies are right for them and their target audiences; whether it be through social media pages, online video, real-time ‘geotagging’ deals, or mobile advertising within smartphone applications.” says Chris Perree, Partner, PwC.
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