Published on the 31/08/2014 | Written by Newsdesk
The local online advertising market saw healthy growth in the latest quarter but the star performer differs from international trends.
New Zealand’s online advertising market, whose growth has been behind the trends overseas, has had an impressive April-June quarter, up an impressive $7.26m on the Q1, 2010 result. The total was $62.58m.
IABNZ’s chairman, Michael Gregg this as signaling the market reaching new maturity with the online sector moving from an emergent advertising choice to a mandatory mainstream medium.
Advertising from the telecommunications sector bounced back showing a big increase in proportion of spend to the display total. In fact, one way the local market differs from overseas trends is that the local star performer in the latest results was display, which increased 38.11 percent from Q1 this year and 25.84 percent from Q2, 2009. Internationally, paid search advertising, social media and mobile are the catalysts of growth.
Display overtook classifieds –but only just by $270k with a 25.84 percent year-on-year increase. The April-June 2010 quarter has seen the highest increase in the last six months, at 19.23 percent year-on-year for the same quarter, proving solid growth in the total online advertising market. The average total year-on-year increase for the last four quarters is 15.06 percent.
Search and directory advertising totalled $21.65m, up 8.69 percent from Q1, 2010, while over the same period classifieds remained flat, though recording 19.18 percent year-on-year growth.
