NZ online ad spend up 15.8% during record quarter
Print, TV and other traditional media may still be starved of advertising. But on the web, the recession’s not touching the sides.
Total online advertising spend was up 15.8% over the year-ago quarter to $57.69 million for the three months ending September 30, according the latest Interactive Advertising Bureau/PricewaterhouseCoopers survey of major sites.
Quarter-on-quarter, spending was up 9.91%.
The survey’s trailing 12-month total also hit a new high of $207 million.
NZ online ad spending by category (Q3, 2009)
Category: Total spend (growth over year-ago quarter)
Search & Directory: $22.36m (38.76%)
Classified: $18.11m (6.15%)
Display: $17.22m (8.6%)
IAB chairman Michael Gregg notes that : “Performance across the online advertising market was mixed”.
And certainly, the stats are not necessarily good news for traditional publishers with websites.
Easily the highest growth came in the Search & Directory category, which includes Google search and the likes of YahooXtra and Yellow.
Display - which includes banner and medallion ads - grew at single digits.
And classified was the dog, especially in the sub-category of recruitment ads, which were hardest hit by the slow down.
Mr Gregg - whose day job is sales director at TradeMe - said he'd personally seen an uptick in classified business over spring. (TradeMe's "verticals" such as Motoring, Property, Cars and Livestock are included in the IAB's classified total, but not general auction listings.)
The big question now, the IAB chairman told NBR, is whether 2009 will be the year that online (or "interactive") advertising passes that of the most vulnerable traditional media categories: magazines and radio.
The ASA’s next update of its media vs media survey (covering the calendar year 2009) is due early next year.
The IAB is confident that online advertising will seize a 10%-plus share of total advertising expenditure, said Mr Gregg.
The only question now is whether magazines and radio will fall below that mark.
The IAB is pushing a ZenithOptimedia survey that predicts a similar pattern worldwide, with the internet ad spend surging while traditional media wilts:
PricewaterhouseCoopers NZ partner Chris Perree said while the current report "iillustrates the soaring growth of online advertising in the New Zealand market", there is more growth to come, "particularly in the mobile space".