Digital advertising revenue will overtake newspapers in 2016, the Interactive Advertising Bureau says.
IAB chair Daniel Robertson made the announcement this morning, while presenting a quarterly report on online advertising produced by IAB and PwC New Zealand.
Robertson says the organisation’s estimate may even be conservative, and digital could be king as early as Christmas 2015.
“It’s a hugely exciting time to actually be in the market for online at the moment,” says Robertson.
“Globally, in the US within the year digital will overtake TV for time spent. We’re seeing a similar pattern in New Zealand where online is the only major media to see an increase in time spent.”
Overall, online advertising spend in New Zealand reached just over $120 million in the second quarter of this year, up 31 percent year-on-year.
For the year to date, online ad spend is nearly $220 million.
Robertson says the numbers mean online advertising has just seen its biggest quarter ever in New Zealand.
Growth has been driven by better measurement of exposure to advertising, greater localisation, and integration with mobile devices, he says.
Smartphone penetration has reached 53 percent in New Zealand, and Robertson says it’s expected to reach 70 percent early next year.
“For years we’ve been asking, ‘When will be the year of the mobile?’ Well I can say we’re very much in it now,” he says.