The Advertising Standards Authority's annual media turnover figures have been released, and while there are a few significant changes, there are no real surprises, with a slight overall increase on 2010 for the whole industry, TV doing as expected and claiming first place for the first time, interactive and outdoor charting significant rises and the rest of the media channels remaining fairly static.
After the big $250 million decline between 2008 and 2009, any rise in the total is welcome news for the industry as a whole. And, although it's still well off the high water mark in 2007 of $2.33 billion, the total industry turnover went up $42 million to $2.17 billion in 2011.
TV maintained the same level of share at 28.4 percent, but took the top spot off the steadily declining newspaper industry, which went from 29.3 percent share in 2010 to 26.7 percent in 2011, a drop of $42 million. In 2002, it had 40.2 percent share and it has lost around $250 million in ad revenue since 2005 although the ASA notes "newspapers advise the figure reported is not a comparative measure with other main media which derive the majority of their revenue from National and Retail advertising sources".
Obviously, much of that spend has been directed towards interactive channels, which started off at $8 million in 2003 and is now third on the list with $328 million turnover (in the US, Facebook accounts for one in every four online ads and, according to a study by Pew Research Centre, the digital realm isn't helping traditional media because newspapers have made $1 of digital ad revenue for every $7 they've lost).
Outdoor also had a sizeable boost of $13 million from 2010 to reach its highest total yet of $83 million, primarily because of increased activity around the Rugby World Cup.
Both radio and magazines have remained fairly consistent since 2002, with mags dropping slightly from $216 million in 2010 to $209 million last year and radio increasing from $241 million to $247 million in the same period. Unaddressed mail, addressed mail and cinema rounded out the list and reported little change.
UPDATE: Here's some of the official post-announcement bluster.
Television is now New Zealand’s largest medium by ad revenue. Figures released today by the Advertising Standards Authority (ASA) show that advertisers spent $618 million on television airtime in 2011, an increase of $11 million from 2010. Television accounted for 28.4% of total spending across all media in 2011.
Television now tops the charts for the first time, moving newspapers into second place with revenue of $582 million, compared with $627 million in 2010. The biggest winner last year was digital and interactive advertising which rose $71 million to $328 million.
“The growth in television revenue is tied to the medium’s ongoing ability to grow audience numbers”, says Rob Hoar, General Manager of television industry body ThinkTV. According to TV rating research agency Nielsen, New Zealanders spent more time than ever watching television in 2011. Over three million New Zealanders now watch television every day, with each person watching on average three hours and 22 minutes a day.
Television’s growth also reflects New Zealand advertisers’ renewed confidence in the medium and the role that it plays in the modern marketing communications mix.
“Advertisers are using television to efficiently reach and engage a large audience and then drive that audience through other, increasingly digital, media channels direct to point of sale”, says Rob Hoar. “Television becomes the starting point for a brand’s deeper digital engagement with its consumers.”
This trend is echoed globally with Delloite, an international accounting and business consultancy, stating in their annual review of media and technology that “in today’s world, TV is the medium around which all others revolve”.
Gill Stewart, general manager, The Radio Bureau:
The Radio industry grew revenue by 2.5% and continued to enjoy a stable share of all advertising at 11.3% in Advertising Turnover figures for 2011 released today by the Advertising Standards Authority.
Over the same period, we are delighted to announce that The Radio Bureau experienced year-on-year revenue growth of 8%.
2011 was a sterling year for The Radio Bureau and our 8% growth reflects our ability to continuously generate innovative and effective advertising opportunities across all of radio’s platforms. Last year, station websites averaged over 1 million unique browsers and 8 million page impressions monthly, whilst radio stations and DJs gathered over ¾ of a million facebook fans.
As champions of radio, we pride ourselves on providing advertising solutions that tap into the popularity of station websites and social networking pages, combining the best of radio’s on-air and online products.
To showcase some of the multi-platform solutions that The Radio Bureau has created for our advertisers, we have added the ‘Integrated Showreel’ to our website www.trb.co.nz . We shall also be releasing a series of new video case studies to the market over the coming weeks.
Following on from our popular Axis Awards video created by Leigh Hart in 2011, we have once again partnered up with Leigh to create some superb, highly entertaining videos that showcase some of our most innovative and successful radio campaigns and promotions.
Interactive Advertising Bureau:
The ASA released total advertising spend for New Zealand today which increased from $2.137 billion in 2010 to $2.179 billion in 2011 with online advertising the biggest contributor to this growth.
Online advertising is also the fastest growing medium showing strong double digit growth over the last few years.
This reflects global trends with ZenithOptimedia forecasting the decline of Newspapers and Magazines to continue, predicting global magazine ad expenditure will shrink by 0.7% a year, while newspaper ad expenditure shrinks by 1.1%.1
Additionally, online advertising increased its share of total advertising spend in New Zealand from 12% in 2010 to 15.1% in 2011.
Liz Fraser, IABNZ Chair says, “Online advertising’s unabated growth won’t surprise anybody. Will it continue? No doubt about it. Look no further than the 24 percent share of time spent online compared to online’s 15 percent share of overall advertising. The disparity is getting tougher for advertisers and content providers of every persuasion to ignore. We can also look overseas, where online captures a bigger share of advertising revenue and, in the UK, Denmark and the Netherlands, already surpasses newspapers and TV. Closer to home, Australia online advertising revenue is expected to trump newspapers and TV this year. I’d expect the same to happen here. The only question is when. Give it two years and online will at least match newspaper advertising. Who knows, given the speed of smart mobile adoption and device upgrades we might get there faster, especially through the power of intelligent targeting capabilities and clever technology.”
IABNZ is predicting further growth of approximately 22% for 2012 taking online ad spend to the $400 million mark.
Laura Maxwell-Hansen, General Manager, of Yahoo!New Zealand says, “Online advertising is the sought-after channel to reach consumers effectively and efficiently and now commands 15.1% of the advertising dollar in 2011. It’s no wonder that press and magazines are finding it tough in the market to justify the spend in areas where audiences have already voted with their feet (and fingers) and moved on. In a tight economic market where you need to be nimble, attract audiences with great creative, engage in a two-way conversation and convert a sale - online delivers every time.”
In terms of market share, New Zealand sits in the same position as Australia however Australia are predicting they will overtake Press and TV by the end of the year.
Alisa Higgins, General Manager, IABNZ, is excited about online advertising's continued growth.
“We are estimating that online will take a 19% share of the total market by the end of 2013 however, it wouldn’t surprise me if we achieve this earlier what with the explosion of mobile devices, increased content integration opportunities, online video and social media continuing to provide more opportunities for advertisers.”
Outdoor Media Association of NZ:
The Outdoor Media Association of NZ (OMANZ) today announced a 15.2% increase in share of total advertising revenue for the Outdoor industry, with the ASA New Zealand advertising industry turnover figures for 2011 released. Out-of-Home was one of only two sectors to gain share, with total share of advertising turnover now increased to 3.8%, the highest share yet achieved for the OOH category.
Jo Davenport, the Marketing & Communications Manager for OMANZ said:
“2011 was a special year for Outdoor, assisted in part by the impact of RWC2011. It provided a great showcase of Out-of-Home advertising and reminded agencies and advertisers of the impact and creative potential of OOH. As the RWC hangover dissipates, OMANZ members expect those strengths to continue with growth anticipated through the second half of 2012 leading into another exciting year in 2013.”
A number of new OOH initiatives are planned for roll out into the market over the next few months, highlighting amongst other things the benefits OOH provides when added to an advertising campaign.
Television grew its share of advertising revenue by just under 2% in 2011 and TVNZ revenue grew at almost double that level, demonstrating that advertisers are seeing the value of this powerful medium in reaching New Zealanders.
In a release by the Advertising Standards Authority today, television ad spend increased by $11 million to $618 million in 2011.
Television is now the largest media in New Zealand, overtaking Newspapers in 2011 for the first time and followed in third place by online advertising which grew $71 million. Total online grew 24.16% with display advertising increasing 11.18%. All other media (except radio and outdoor) either lost market share or remained stagnant.
Paul Maher, TVNZ Head of Sales & Marketing says, “We are very pleased with the ASA results and especially with television moving into the number one place as the largest media in New Zealand. I believe we’re seeing a renaissance of the TV industry here and around the world, as markets become tougher and more competitive advertisers are turning to media that work. Our strategy is to drive content solutions across screensto offer more content integration and creativity which I believe will continue to drive growth.”
“As a major player in display and video online we also benefit from the growth in digital. I think in 2013/14 we will continue to see growth in screen media (both TV and online platforms) and decreases in static media as more campaigns use a multi-channel video approach.”