Online advertising revenues headed for record

JOSH MARTIN
Last updated 14:38 22/11/2013

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Companies are spending more of their advertising budgets on interactive, online campaigns than ever before.

Advertising spend in New Zealand's interactive market, on websites like stuff.co.nz, TradeMe and Facebook, will surpass a record $400 million by year-end, according to a report by the Interactive Advertising Bureau (IABNZ) and PwC.

For the three months to September 30, advertising spending totalled $120m, a 27 per cent jump for the same period last year.

The year-to-date total for online advertising spending of $328m, is already more than double the $137m spent in 2007.

However, the $400m target for the year is still well below the $614m spent in 2012 on television advertising, or $540m in newspapers.

The online advertising surge is in line with global industry average annual growth rates of 13 per cent, compared to traditional media advertising growth rates of only 1.6 per cent a year.

Search engines and directories accounted for the largest share of online advertising spending, $52m in the September quarter, followed by classifieds, $33m and total display, $30m, which incorporates advertising on YouTube and "on-demand" video streaming ads.

Mobile advertising had its largest period gain to date, more than doubling year-on-year, as more people access news and content on their smartphones and tablets the report found.

Government services, investment and banking services, travel and tourism, and food and beverage made up a combined 45.8 per cent revenue share.

Traditional advertising clients like retail and real estate made up only 6.9 per cent and 1.2 per cent of the total online spend per industry.

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- Fairfax Media

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