SMI figures: total agency spend exceeds $1 billion in 2017

  • Advertising
  • February 13, 2018
  • Erin McKenzie
SMI figures: total agency spend exceeds $1 billion in 2017

2017 was another record year for agency advertising spend, with data released from Standard Media Index (SMI) showing $1.048 billion was spent on major media across the year in New Zealand. 

Leading the way was TV, which continues to hold tight against the growing threat of digital, with one percent growth taking it to $389.6 million.

Digital followed, with 7.1 percent growth taking it to $338.9 million, ahead of outdoor’s $136.3 million—a total up 18.4 percent on 2016.

The 18.4 percent growth saw outdoor achieve the biggest jump in 2017, after its 22.2 percent growth in 2016.

SMI managing director for Australia and New Zealand Jane Ractliffe explains that momentum comes off the back of innovation in the industry. She says as long as outdoor companies continue to digitise their inventory, the category will continue to grow.

Continuing down the list of media, it’s then a significant drop to radio’s $83.1 million, which was up 2.1 percent on 2016. Meanwhile, newspapers and magazines are down 6.9 percent and 14.3 percent respectively.

Cinema’s 9.2 percent growth slowed the momentum it's previously showed as it grew 16.8 percent in 2016.

Also maturing is digital. The past few years have had industry poised to see digital overtake TV, however, with TV representing 37.2 percent of the media share compared to digital’s 32.2 percent, it still has a while to go.

Aiding TV’s retention of the top spot is the safe environment it provides brands, which digital is yet to meet.

“Marketers now are more concerned about brand safety issues,” Ractliffe says. “So it really comes down to whether or not digital media can provide enough safeguards to ensure there is no erosion in trust.”

That erosion came to light in the local market last year when Holden, Vodafone and Tourism New Zealand suspended their ads on YouTube due to concerns over ads appearing alongside racist, sexist or terrorist content. 

At the time, Tourism New Zealand general manager of corporate affairs Deborah Gray told StopPress it would continue to serve up advertising on YouTube in the future under tighter brand safety exclusions.

Similarly, Ractliffe says digital advertising requires greater policing than that on TV because, on TV, the content against which the advertising sits is known.

“If digital can do that, then maybe there’s a chance it can overtake TV, but is still has a while to go.”

TV's decline slowed in 2017 and Ractliffe explains that 2016’s decline in spend on TV would have been the result of a spike in 2015 associated with the Rugby World Cup.

She says sports events such as the Rugby World Cup provide opportunities for sponsorship and therefore, they’re associated with increased advertising spend.

This year’s Commonwealth Games is set to see similar opportunities and already, the Olympic Winter Games have seen the New Zealand Olympic Committee roll-out a campaign called ‘Earn the Fern’, on social media and outdoor. APN Outdoor is an official partner of the committee.

Comparing New Zealand’s agency spend to that of Australia, our neighbours have bigger spend but local growth is higher. 2017 was also a record year across the ditch, with media agency spend up 0.7 percent to reach $7.11 billion.

Its spend trends display the spend on the digital channels of each category as well as the traditional offering and showed that while traditional TV was down 0.7 percent in 2017, TV’s digital offerings (excluding programmatic) was up 3.4 percent.  

Spend was down 22.3 percent on newspapers and 20.8 percent on magazines, while digital (unaligned to traditional media) was up 12.3 percent.

Looking into the future, Ractliffe says the question for the New Zealand market is how the economy fares moving forward.

“You’ve just got a new government, there’s a lot of change – what impact does that have on advertiser sentiment?” she asks. “Are business still feeling confident and prepared to invest more in advertising to fuel their business growth?”

She says there is a strong correlation between advertising and confidence in the economy, and if confidence remains high then the advertising market will continue to grow. However, if something happens with the new government and that confidence falters, the expected course of events would be to see advertising start to fall away.

The new government and election saw government advertising spend up 9.9 percent last year, the third highest growth seen in the top 10 product categories.

Automotive brands achieved 11.9 percent growth and communications achieved 10.8 percent growth.

Meanwhile, airlines/travel agents saw the biggest drop, down 16.4 percent. Ractliffe says it was unusual to see the drop as it is usually one of the strongest categories in New Zealand given it’s a travel-orientated economy.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

Give the model some wit. Said no-one ever.

  • Voices
  • May 21, 2018
  • Angela Barnett
Give the model some wit. Said no-one ever.

Do you think the idea of women driving is niche? Do you pose on the beach rather than lie on it? Angela Barnett takes a critical eye to advertising to see how it continues to focus on beauty rather than wit or intelligence.

Read more
topics
Beneath the Surface
Beneath the Surface
In this series, brought to you by Microsoft, we talk to a conceptual photographer, illustrator ...
Insight Creative
Insight Creative
Insight Creative specialises in shaping business stories out the core insights that often lie under ...
20/20 (tele)vision
20/20 (tele)vision
Media consumption is changing. But by how much?
The Hot List
The Hot List
Our rundown of the hottest shows, brands and creators in New Zealand media. 1. magazine ...
Cannes Lions 2017
Cannes Lions 2017
All the winners, the shortlists and the drama from this year's edition of advertising biggest ...
Merger Mania
Merger Mania
All our stories on the nation's two failed mergers in one place
Bauer Beyond the Page
Bauer Beyond the Page
When it comes to creating branded content, there are few better in the Kiwi market ...
The Indies
The Indies
Over the course of this series of articles, we look at how always-nimble indy agencies ...
AdRoll on automation
AdRoll on automation
Marketing automation is tipped to eventually become the only way advertising is traded in the ...
Game Changers
Game Changers
It’s all about PEOPLE. Join us as we discuss global insights, ideas and innovations from ...
TVNZ-NZ Marketing Awards 2015
TVNZ-NZ Marketing Awards 2015
Celebrating all the winners of the 2015 TVNZ-NZ Marketing Awards.
Future Tense
Future Tense
In a new series, StopPress talks to a range of newsmakers currently trying to shine ...
Beyond the Page
Beyond the Page
In conjunction with the MPA, the Beyond the Page series shows how some of the ...
Up Country
Up Country
In conjunction with News Works, the Up Country series talks with some of New Zealand's ...
Sounding off
Sounding off
As part of a content partnership with MediaWorks, we've asked a few of the company's ...
StopPress Podcasts
StopPress Podcasts
We sit down for a chat with industry leaders to find out what they're up ...
Beyond the Page 2018
Beyond the Page 2018
In conjunction with the MPA, the Beyond the Page series shows how some of the ...

Movings/Shakings: 18 May

  • Movings/Shakings, brought to you by Marsden Inch
  • May 18, 2018
  • StopPress Team
Movings/Shakings: 18 May

Industry happenings at Colenso BBDO, ChristchurchNZ, Dentsu, The Warehouse Group, Harvey Cameron Group and TVNZ.

Read more
voices

Deadpool 2 takes over TVNZ

  • Advertisment
  • May 18, 2018
  • StopPress Team
Deadpool 2 takes over TVNZ

With Deadpool 2 currently on cinema screens, lead star Ryan Reynolds has lent his world-famous character to a Broadcasting Standards spot for TVNZ as part of a campaign for the film in collaboration with 20th Century Fox, TVNZ and MediaCom.

Read more

Industry shows support for Bowel Cancer Awareness in pro bono campaign

  • Advertising
  • May 18, 2018
  • Erin McKenzie
Industry shows support for Bowel Cancer Awareness in pro bono campaign

Next month is Bowel Cancer Awareness Month and to get the message out there, this weekend a campaign showing that bowel cancer can affect young people is rolling out. It will hit our screens, radios, streets and papers thanks to the goodwill of agencies and media companies offering pro bono creative and media space.

Read more
Sponsored content

All the tech, none of the pitch: KBR founder Grant Hyland puts collaboration first

In business, it's almost a cliche: Everyone talks about the importance of building relationships. But for digital media services company KBR Digital, it's not just lip service. It's an obsession.

Creating a digital personality: How a kiwi creative agency won big with Huff Post

  • Media
  • May 15, 2018
  • Findlay Buchanan
Creating a digital personality: How a kiwi creative agency won big with Huff Post

Gladeye has won big for its collaboration with Huff Post Highline to deliver FML; an interactive new age form of digital story-telling. The Kiwi digital agency has pipped finalists New York Times, National Geographic and ESPN to accept awards for Web Feature Design, Web Animation, and Innovative Practice at the 53rd Annual American Society of Publication Designers Awards gala in New York. It’s one of the many polarising stories Gladeye has collaborated on including America’s Most Admired Lawbreaker, Out Here, No One Can Hear You Scream and Four Quitters Walk Into a Bar, to name a few. We sit down with the brains of the business, founder and creative director Tarver Graham, to hear about how Gladeye is transforming news stories from across the globe.

Read more
Next page
Results for
Topics
Jobs
About

StopPress provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise

Contact Vernene Medcalf at +64 21 628 200 to advertise in StopPress.

View Media Kit