Published on the 24/08/2011 | Written by Newsdesk
Online advertising in New Zealand experienced double digit growth for year-on-year ad revenue in Q2 says a new report, as mobile devices, video and social media continue to attract advertisers…
A new report from the Interactive Advertising Bureau (IAB) says that total online advertising spend in Q2 2011 was $84.15million, up 19.46 per cent year-on-year and up 22.94 per cent from Q1, 2011 ($68.12m).
“The fastest growing channels for online advertising this quarter are Display and Search & Directories,” says Liz Fraser, IABNZ Chair & General Manager MSN New Zealand.
“Display experienced a quarter-on-quarter increase of 29.63 per cent mirroring the trend we saw this time last year when Q2, 2010 increased with double digit growth of 38 per cent.
Growth drivers for the overall market include an increase in online video and social media as well as an escalation in the number of consumers accessing the internet from mobile devices. IAB predicts 2011 will finish with approximately 20 per cent year-on-year growth.”
This is the second quarter the survey has separated out email and video spend from the total display figure, revealing that email is showing a 47 per cent increase quarter-on-quarter with video increasing by 41 per cent.
APN Online, Sales Director, Donna O’Keeffe says that “online display is going from strength to strength, both globally and locally. The significant increase of brand activity we are experiencing in New Zealand is a pointer to a maturing market that is beginning to see beyond the click through rate as a measure of success….We’re also seeing the emergence of new categories, such as Leisure & Entertainment and FMCG, which presents publishers with exciting opportunities to develop new environments and products to meet the needs of these brands.”
Search & Directories is still the channel leader with a 41 per cent share of total online ad dollars jumping up from 38 per cent in Q1, 2011 while Display also increased from 29 per cent to 31 per cent leaving Classifieds with a 28 per cent share, down from 33 per cent in Q1.
“With quarter-on-quarter growth of 22.94 per cent, the online advertising industry is picking up pace, allowing advertisers using this channel greater opportunities for exposure,” says Chris Perree, Partner, PwC. “Advertisers continue to increase their focus on online technologies and re-aligning business strategies towards more innovative ways of advertising online.”
Perree also says that mobile technology as an advertising channel has captured the attention of advertisers.
“People accessing the internet and social media through mobile devices could over time exceed the usual desktop access. It will be interesting to see how local advertisers capture the audience especially with the influx of overseas smartphone users attending the Rugby World Cup. Mobile social networking enables users to share, compare and contrast their experiences, views, entertainment, travel, fine dining, shopping and much more.”
