Online Advertising now third largest medium in New Zealand

Online Advertising now third largest medium in New Zealand

Online advertising has achieved a 12% share of total advertising spend in New Zealand moving up from fifth spot in 2009 to be the third largest medium in 2010.

Apart from Online and Television, all other media either lost market share or remained stagnant with Radio and Magazines slipping into 4th and 5th places respectively.

Liz Fraser, IABNZ Chair says, “Reaching the number three position in advertising industry turnover a year ahead of our own expectations might be considered a historic milestone for New Zealand’s digital sector. Contain your excitement for future reports, I reckon, because history will show that we’re only just warming up. The upside is huge and many opportunities lie untapped. The vibrations in agency land are good and strong and as they continue to bring new creative approaches to what is still a nascent medium, then we can reasonably expect additional quantum growth – 25 percent for 2011 isn’t out of the question.”

“On other fronts we see continued growth of performance (cost-per-click) advertising. Video advertising – massive in other markets – is beginning to take a foothold, and the introduction of AdExchanges will substantially change the way our medium is transacted. Scope for innovation is endless.”

“Back at base, IAB continues to turn up the volume on industry learning, and in this regard I’m pleased to announce two upcoming events that promise to further illuminate the potential of our medium: The Wave of Online Video, on 30 March, and Marketing Strategies and Insights from the NZ Tourism industry, on April 14.”

Online Advertising in New Zealand still has a lot of growth ahead of it says IAB’s General Manager, Alisa Higgins. “The Internet soaks up around 82 percent of our media consumption time in NZ, the second highest after TV. People are now spending more of their waking days interacting with media than any other activity including eating, working and sleeping with two thirds of total media consumed through our monitors and screens. This rapid consumption only stands to intensify as devices such as smartphones & tablets become more ubiquitous.”

Internationally, New Zealand sits in the same position as Australia where latest figures place online advertising third in terms of share of advertising dollars, behind newspapers and television.

Yael Milbank, Head of Advertising for Trade Me, is excited about online advertising’s jump in market share and the bright future moving forward. “While some of the growth is a natural development as consumers spend more time online and advertising dollars follow, the demand for online video, new ad products and new targeting models has helped the market take a big step forward over the last year. We are expecting strong growth again in 2011, and I wouldn’t expect the speed of innovation to slow down either.”

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