Television Advertising for 2006 declines 3.87

New Zealand Television Broadcasters’ Council

MEDIA RELEASE 1 February 2007

Television Advertising for 2006 declines 3.87%

Television advertising revenue totalled $640.664 million ($666.427m in 2005) for the 12 months to 31 December 2006. This was a decrease of $25.753 million or 3.87 per cent over the same period in 2005. Revenue improved for the three months ending 31 December 2006 and was up 1.36 per cent or an increase of $2.457 million over 2005. A total of $182.556 million was earned compared to $180.099 million in the same three months in 2005.

All revenue figures are for free to air (including Prime) and pay television.

Revenue for the six months ending 31 December 2006 was $350.062million, down 4.63 per cent on the $367.050million reported for the same period in 2005.

The New Zealand Television Broadcasters’ Council said that the decline for the year was the result of poor 2nd and 3rd quarters when the economy seemed to be slowing however the final quarter performance showed that the buoyant economic attitude amongst consumers and companies was reflected in airtime sales. The TBC’s executive director, Bruce Wallace noted that his members were reporting strong airtime sales into the year which underlined the trend begun in the 4th quarter ending in December.

Mr Wallace said that some outstanding programmes contributed to the strength of the television including the launch of Lost on TV2 and Dancing With The Stars on TVOne. CSI was TV3’s leading international show. Prime’s top series was Top Gear. The All Blacks and Super 14 attracted strong support.

Kiwi content performed well with shows such as Outrageous Fortune on TV3, Fair Go on TVOne and Shortland Street and NZ Idol on TV2.

Spending on television advertising in 2006, as reported by AGBNielsen, increased significantly over 2005 in the categories of clothing, computers, investment, finance and banking, and real estate. Strong growth was also reported as the result of competitive pre-Christmas advertising in telecommunications, automotive, household products, retail and foodstuffs.

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