NZ online ads grew 24% in 2011; mobile appears on radar

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Total online advertising spend in New Zealand for 2011 was $328.11 million up 24.16% from 2010 ($257.46m, according to the IABNZ/PwC Insight report, now in its fifth year and released today to Interactive Advertising Bureau New Zealand (IABNZ) members.

For the fourth quarter 2011 total online advertising spend was $87.11 million, up 20.52% year on year.

Display advertising increased by $1.27m (4.80%) from the previous quarter (Q3, 2011) making it the biggest quarter for Display since PwC started measuring in 2007.

“IABNZ estimates that online ad spend will increase its share of the total ad spend market from its current position of 12% to 19% by the end of 2013," said IAB general manager Alisa Higgins.

Click table to enlarge.

Mobile ad spend tracked for first time
IABNZ and PricewaterhouseCoopers have released a figure for annual mobile ad spend for 2011 for the first time, IABNZ said.

In 2011, mobile ad spend in New Zealand was $632,092, not including Google Ad spend, IABNZ said. 

In Australia, PricewaterhouseCoopers was predicting that spend on mobile display advertising, excluding search, apps or subscriptions, would reach $AUD37 million in 2011, rising to $AUD219 million in 2014, it said.

Total online ad spend in Australia for 2011 was $A660 million, giving mobile a 1.39% share, it said.

IABNZ general manager Alisa Higgins told NBR in an email that New Zealand was a developing market when it came to mobile, and it had a long way to go to catch up to markets such as Australia and the United Kingdom.

"Australia are expecting mobile ad spend to increase by almost 500% in the next few years and I would happily put a stake in the ground and say New Zealand will follow suit, although we won't be talking hundreds of millions."

PricewaterhouseCoopers partner Chris Perree said compared with five years ago, the total online advertising expenditure of $328 million for 2011 had increased 143% in dollar value and represented the largest year on year growth since 2008 at 24%. 

"Online continues to be an effective advertising medium for organisations with all channels experiencing double digit year on year growth."

Mr Perree said the mobile platform opened up more opportunities to connect with consumers on the go.

"We believe New Zealand will follow the international trends of mobile online advertising spend increasing as the population of smartphone and tablet users continues to grow."

Fourth quarter highlights
In the 2011 fourth quarter display advertising was up 4.8% compared with the third quarter 2011 at $27.03 million, its biggest quarter yet, IABNZ said.

Email and online video spend increased over the period of the first to fourth quarter 2011, from $0.24 million to $0.61 million and frpm $1.9 million to $2.64 million respectively.

RAW DATA: Online ad spend by industry (PowerPoint)

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2 Comments & Questions

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This just shows how far NZ is behind the rest of the world. Most countries embraced Online many years ago - they made getting the internet cheap and really pushed online Media and businesses. Sadly in NZ our Govt thinks online involves getting 50MB broadband haha so useless. Escpecially since mobile downloads have hit 9 times faster than that this year already!

Biggest waste of time.

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Why do they include search spend along with directories? Is it just to hide Yellow's haemorrhaging of revenue? Surely it's more relevant to include directories with classifieds.

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