OCT 2007 - NZ Online Advertising Hits $57 Million for First Half of 2007
10 October 2007
The online advertising market in New Zealand in the first two calendar quarters of 2007 exceeded $57 million according to the inaugural “IAB Insight” report released today by the Interactive Advertising Bureau (IABNZ) and PricewaterhouseCoopers(PwC). This confirms industry speculation that online advertising spending in New Zealand is greater than previous studies have indicated.
IAB Insight is based on revenue information gathered from 27 media companies representing dozens of sites across New Zealand, and is the largest study of its kind undertaken in this country.
Contributors to the report provided their online/interactive advertising revenue figures to PricewaterhouseCoopers for three main categories of advertising: Display, Classified and Search and Directories. Over 95% also broke down their display advertising into 15 industry categories.
Mark Evans, CEO of IABNZ, says “This is the first time such a robust, wide-ranging study of online spending has been available in this country, and it’s information the advertising industry has been crying out for. Now we can start to build a picture of exactly how big the online advertising industry is, how fast it’s growing, and where that growth is coming from”.
“We know from overseas reports that online advertising is by far the fastest growing advertising medium globally, and we wanted to be able to quantify that growth here in New Zealand as our local industry continues to mature”, Evans says. Lee Williams, IABNZ’s Chairman, and Head of Digital at ACP, says that the report will be an invaluable tool for media companies, advertising agencies, marketers and advertisers alike. “It will enable media companies to forecast where growth areas are going to be so they can make informed investment decisions. Advertising agencies and advertisers will be able to track where shifts in advertising spending are happening and see the increasingly important part online advertising is playing in the overall media mix”, says Williams.
IABNZ and PwC are already starting to collect data from Contributors for the Q3, 2007 Insight report, and will continue to collect data from more and more companies for future reports.
“One of the benefits of this report is its frequency”, says Evans. “This industry is extremely dynamic as new opportunities – such as search advertising or mobile advertising – emerge, and advertisers quickly realise the power of the medium to deliver real engagement with their customers. That leads to huge growth, and rapid changes in spending patterns. Having a quarterly report will allow us to keep on top of those changes in near real-time”.
John Deane, Director at PricewaterhouseCoopers, and project leader on PwC’s reporting team says this has been a fascinating project to be involved in. “There are so many different forms of online advertising and such a wide variety of companies active in the industry that collecting the data for this report has been challenging, especially in the Search & Directories category. The capabilities of our Data Management team were invaluable in achieving these results. We are delighted with the outcome and pleased to be working with this vibrant industry to provide the research needed to help it grow and mature”, he says.
“There are few industries that are growing as quickly and changing as fast as the online industry globally. PricewaterhouseCoopers is helping drive growth in the New Zealand market by providing the industry with the research needed to support decisions on interactive advertising investments.”
Chris Perree, the sponsoring Partner at PricewaterhouseCoopers says that the report will provide the foundation for measuring industry growth and change into the future, and he’s looking forward to the release of the figures for the whole of 2007, which will happen early in 2008. “Then we’ll start to see real quarter-on-quarter growth, and have a solid base of data for measuring changes over time”, he says. The next IAB Insight report, covering Q3, 2007, will be released in mid to late November.
To view the IAB Insight Q1 and Q2 report,
click here
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