Online advertising bigger than previously thought: Industry Org

By NZPA

Thursday 8th November 2007

Online advertising in New Zealand is greater than previously indicated, according to an industry organisation which says it has carried out the largest survey of its kind in this country.

The IAB Insight report, released today by the Interactive Advertising Bureau (IABNZ) and PricewaterhouseCoopers, put online advertising spending for the first half of 2007 at $57.6 million.

That was based on revenue information from 25 media companies representing dozens of sites across the country.

IABNZ chief executive Mark Evans said it was the first time such a robust, wide-ranging study of online spending had been available in this country.

"Clearly the online advertising market in this country is bigger than past studies have reflected," Evans said.

"Over the next few quarters, we expect this report will show just how fast this market is growing."

The survey put June quarter online advertising spending at $31.8m, up 23.2% on the $25.8m in the March quarter.

The increase between the quarters was not unexpected due to traditional seasonal weakness in the first quarter due to the Christmas and summer holiday season, the report said.

Because total advertising expenditure across all media was only measured annually, a calculation could not yet be made as to what proportion of the total was represented by online advertising.

That was expected when an industry-wide report was published early next year.

The Insight survey found that search and directories advertising accounted for 26% of the total in the March quarter and 25% in the June quarter.

Display was 26% and 31%, and classified 48% and 44%.

The dominance of classified advertising in this country was different from the position in the US, Britain and Australia.

The comparisons with overseas markets would suggest the search market in this country was poised for significant growth in market share, assuming the local market mirrored international trends, the survey said.

Overseas, all categories of online advertising had grown quarter-on-quarter, with search advertising showing the fastest growth.

No data was available in the market which would allow a comparison with the same quarters from 2006 to allow a like-for-like quarterly comparison, the survey said.

"Since there can be significant variation in spending quarter to quarter, a same-quarter comparison with the previous year would yield the most accurate picture of market growth."

Comments from our readers

No comments yet