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Online advertising in NZ overtakes the $250m mark in 2010

Online advertising in New Zealand overtakes the $250m mark in 2010

All online channels experience double digit growth year-on-year

Monday, 14 February 2011

Total online advertising spend in New Zealand for 2010 was $257.46 million up 19.65% from 2009 ($213.89m).

For the first time, Display surpassed Search & Directories with year-on-year growth of 23.09%, thanks to the rise of internet video and social media advertising. This follows the global trend, as reported by ZenithOptimedia and eMarketer, that Display advertising is now the fastest-growing internet category.

Liz Fraser, IABNZ Chair says, “recovery of online ad spend in 2010 was significant, with all three segments showing increases year-on-year in double digits. Cracking the milestone of total online ad spend over the $250m mark puts this industry in line to surpass radio and magazines in 2010.”

Search & Directories is still the channel leader with a 36% share of total ad dollars in 2010 and will continue to hold this position while advertising dollars are transferred from the likes of Radio and Magazines and not taken from established channels such as Search which continues to return strong ROI for marketers.

“Who said the banner ad is dead? Display is back with double digit growth and with more sophisticated targeting, along with the rise in online video and social media, 2011 is bound to be kind once again to this channel. And let’s not forget Classifieds, which recovered from negative year-on-year growth in 2009 to finish 2010 up 17.26%.” says Alisa Higgins, General Manager, IAB New Zealand.

Total online advertising spend in Q4, 2010 was $71.11m up from $67.93m in Q3, 2010 and up 26.37% year on year.1

All channels showed positive growth when comparing Q4, 2009 to Q4, 2010 with Search & Directories almost increasing by a whopping 50%. Display figures now include estimated Facebook numbers which has helped enable more accurate reporting of the Display sector.

“The continued positive growth in digital media is no surprise when you consider the increase in time spent online by New Zealanders. There is a real confidence from advertisers that online environments do deliver on their marketing objectives. Simply put, the sophistication of digital ad-targeting technology leaves broadcast media audience segmentation tools for dead and the increased media spend in these tools proves it.” Says Laura Maxwell-Hansen, General Manager, Yahoo!Xtra and IABNZ Vice Chair.

“We are now at the end of our fourth year of the IAB/PwC Insight report, and what a journey the past few years have been! Thinking back to early 2007, when we began measuring internet advertising spend in New Zealand, the total reported for all channels for Q1, 2007 was $25.82m. Compare this to the $26.29m reported in just the Search & Directories channel in Q4, 2010 and you’ll agree the accelerating rise of online advertising phenomenal.

Today the internet is at the core of communication and consumption behaviour. As social networks continue to develop, the internet has become a place where a brand’s reputation and image is shaped. Hence the increasing proportion of advertising budgets going to online campaigns.

The ongoing growth in online advertising will be fulled by social media and online video, and mobile devices such as smartphones and iPads/tablets.

The future is exciting and there is a real opportunity this year to reach out to the market and for more contributors to come on board. We know the market is bigger than this study reflects – if you are reading this report and haven’t yet joined the Insight project; it’s time to get involved.” Chris Perree, Partner, PwC.

ENDS

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