NZ online advertising shows excellent growth

Wednesday 15th February 2012

New Zealand’s total online advertising spend had its largest year-on-year growth since 2008, while mobile internet ad spending was measured for the first time, in a report released by IAB New Zealand and PwC.

Total online advertising spending grew 24 percent to $328 million in 2011, from $257 million a year earlier. Mobile ad spend was about $632,000, attributed largely to an increase in smart-phone penetration that now accounts for about 30 percent of all handset usage, the report said.

“The variety of platforms and technologies available for businesses to reach out online to their customers provide organisations with strong investment strategies,” said Chris Perree, partner at PwC. “ The mobile platform opens up more positive opportunities to connect with consumers “on the go”, and we believe New Zealand will follow the international trends of mobile online advertising spend increasing as the population of smart-phone and tablet users continues to grow.”

The biggest change in revenue was display advertising overtaking classifieds for the first time, highlighting that online display advertising is becoming a destination, the report said.

“In 2012, we expect advertisers to further utilise these options, plus add online video and mobile to the mix, especially because of the strong audience performance of these,” Sandra King, group sales & marketing manager at Fairfax Media, said in the statement. “New Zealand still lags investment in video and mobile advertising when compared to the rest of the world and we believe is set to change.”

Email advertising rose to about $610,000 in 2011, from $240,000, while online video advertising increased to about $2.6 million from $1.9 million.

(BusinessDesk)

BusinessDesk.co.nz

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