Industry View on 2009 NZ Advertising Figures

Industry Perspective on the 2009 New Zealand Advertising Figures

The Advertising Standards Authority (ASA) has just released New Zealand advertising turnover figures for 2009, showing an overall decrease in spending of nearly 12%.

The changes to the New Zealand market over the past year are comparative with trends being experienced in international markets, a recent Nielsen Company report has shown that the US market experienced a 9% decrease in 2009.

It is important to remember that despite the decrease in spending since late 2007, we have experienced significant growth (over 23%*) over the last ten years, from $1485 million in 2000 to $2045 million in 2009.

“While these figures are excellent for understanding how advertising budgets are being spent, it is also important to consider these figures in relation to return on investment and cumulative brand value.

“Over the past few years, we have seen how measurability and accountability, as key contributors to innovation and excellence in marketing, are driving outstanding business success. As part of best practice marketing, we encourage our members to consider the return they are getting from their advertising spend when making decisions about how to best use their budgets,” says Sue McCarty, Chief Executive, New Zealand Marketing Association.

The figures released by the ASA show interesting trends in how advertising dollars are being spent. Not unexpectedly, there has been a decrease in advertising spend across newspaper, television and radio over the last two years. However these mediums continue to hold the majority share of the market.

The interactive category has continued to prove its potential for growth, growing from 0.4% market share in 2003 ($8 million spend) when recording of this medium began, to 10.5% market share in 2009 ($214 million spend). Potential for growth in the interactive space is reflected by findings just released from AUT University’s New Zealand World Internet Project. The Project findings reveal that of the 1200 New Zealanders surveyed, 83% are now using the internet (up from 79% in 2007) and 82% of users have access to broadband.

The NZMA has examined the ASA’s New Zealand Advertising Industry Turnover figures and has put together several graphs showing spend by medium, split of spending and share of market by medium. These are available on the NZMA website: http://www.marketing.org.nz/cms/lib/2344.pdf

The Marketing Association also acknowledges the support of TVNZ and New Zealand Post as Principal Business Partners. Through their support the NZMA is able to continue facilitating a vibrant community of engaged marketing and business professionals that together foster the evolution of successful, market-led New Zealand businesses.

*Total spend figures for interactive, unaddressed or addressed mail are only available for 2003 – 2009.

ENDS

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