Online advertising revenue on the rise

Online advertising spending rose 10.06 per cent last year, less than a quarter of the growth registered in 2008, according to a report released today by the Interactive Advertising Bureau of New Zealand and PricewaterhouseCoopers.

IABNZ and PwC said total online advertising spending for 2009 rose to $213.89 million from $193.15m in 2008.

However, the year-on-year growth recorded was only 10 per cent compared to 43 per cent in 2008.

Although online search and directories and display advertising spending rose, classified spending fell by $3.89m, or 5 percent, to $$71.43m.

Alisa Higgins, IABNZ’s marketing manager attributed the fall to the recession with lower volumes of employment and job opportunities advertised.

Search and directories revenue rose 31.64 per cent year-on-year and display advertising climbed 7.67 perc ent to $64.3m accounting for 30 per cent of all interactive spend in 2009.

For the final quarter of 2009 New Zealand online advertising spending rose 12.9 per cent, slightly higher growth than for the full year, versus the same period of 2008 to $54.45m.

Michael Gregg, IABNZ chairman, said although 2009’s 10 per cent growth could be viewed as modest compared to previous years, the year had demonstrated marketers’ confidence in online as a medium that delivered results at a time when budgets were being cut in other media.

"This clear structural shift to prudent, results-based online advertising is anticipated to accelerate in 2010 with IAB and its members striving to provide return on investment driven campaigns no matter what the channel,” Gregg said.

- © Fairfax NZ News