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Television Advertising Down As Predicted

Wednesday 27 March 2002

Television advertising revenues for the calendar year 2001 were $479 million (2000 $501 million), a reduction of 4.4 per cent. The returns include revenues from all free to air channels and Sky Pay television.

The New Zealand Television Broadcasters’ Council, representing the television industry, commented that the fall in revenues came as no surprise.

Executive Director Bruce Wallace said that 2001 started slowly, as advertisers pulled back on brand advertising, a traditional strength for television, and focused on shorter term plans in a sluggish economy. “The second half of the year has seen a noticeable shift back to television as the economy started to improve. Major television categories such as telecommunications, real estate, autos and packaged goods all showed decreases in 2001."

He said that television companies were already noticing improved returns in 2002 and were optimistic that domestic economic growth would persuade advertisers to spend more on branding and sales campaigns.

Mr Wallace said that New Zealand television offered advertisers one of the most competitive markets in the world with five free to air national channels, regional television and a large number of pay television channels.
The Television Broadcasters’ Council represents the non-competitive interests of the broadcast television industry and its members are Television New Zealand, CanWest New Zealand, Prime Television New Zealand and Sky Television. Its associate members are West Media and Canterbury Television.

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