TV on top of ad spend despite year-on-year shrink—UPDATED

  • Advertising
  • March 20, 2013
  • StopPress Team
TV on top of ad spend despite year-on-year shrink—UPDATED

Television is still the top earner in ad land raking in $614 million and accounting for 28.4 percent of all advertising in 2012, according to the Advertising Standards Authority's annual industry turnover statistics.

Despite shedding $4 million in revenue, television maintained its top spot in a year of decline for the overall industry. In total there was $2.16 billion of advertising revenue in 2012, around $15 million less than the previous year.

Online advertising continues to grow rapidly (up 11.6 percent), accounting for around 17 percent of all ad spend with $366 million. This is a significant cooling off from the gains made between 2010 and 2011, but more than double the figures from five years ago.

  • More info on the interactive spend and how it's being split here

Radio and magazines saw modest growth (0.4 percent and 0.5 percent respectively), while cinema advertising remained unchanged at $7 million.

Following international trends, newspaper advertising was hit hard with a 7.2 percent drop in revenue worth $42 million, although this doesn't include online advertising for news brands (check out the Pew Research Centre's latest rather harrowing figures on ad revenue in print vs. digital). Outdoor advertising was the hardest hit, losing almost one fifth of its revenue in a year, although this was coming off the high of the Rugby World Cup. 

Here are the various releases: 

News Works: 

The 2012 Newspaper Advertising Revenue results are in and the findings show newspapers continue to command a strong share of the advertising market.

The total newspaper advertising turnover for 2012 was $540 million, not including revenue generated from newspapers’ online editions.

At 24.9 per cent of advertising market share (down 1.8 per cent on 2012), the results reflect the enduring strength of the newspaper medium as an advertising tool despite ongoing media fragmentation as newspaper readers access content in a multiplicity of ways to suit their needs.

Of note, nzherald.co.nz and stuff.co.nz are the most popular news websites in the country. Their success is testimony to the fact that online formats share the same brand values and journalistic standards as their ‘parent’ newspaper brands - readers trust newspapers irrespective of format.

Currently, 2.44 million people, or 70 per cent of the adult population 15+,  read a paper once a week and nearly 1.5 million people are reading each day*.

The advertising revenue results reflect the power of this huge reach for advertisers and the significant role newspapers play in the wider advertising market.

NPA Chairman Michael Muir says the figures characterise continued evolution in the newspaper business.

“The 2012 result reflects a strong stable industry that is continuing to find new ways to grow share of revenue into the future.”

2012 was a major year for innovation across New Zealand’s newspaper groups. The weekday New Zealand Herald came out in a compact format with a redesigned website and new mobile applications. APN’s new online food hub became a Mecca for foodies, bringing together recipes from magazine and newspaper titles across the group. 

Fairfax launched Stuff Nation to engage consumers and build citizen journalism while parenting site Essential Mums was launched to offer news, views and community for women thinking about parenting.

Fairfax also launched refreshed iPad and iPhone apps and both the Ashburton Guardian and Westport News installed pay walls on their new websites.

IAB: 

The ASA released total advertising spend for New Zealand today which decreased from $2.179billion in 2011 to $2.164billion in 2012 however interactive advertising showed positive year-on-year growth especially compared to Television and Newspapers over the last couple of years. 

Interactive advertising earned a 17% share of all ad spend while TV remained static and Newspapers decreased compared to 2011. 

Alisa Higgins, IABNZ, general manager, says “it was a tough year for all media with everyone feeling the pinch however this shows that more and more advertisers are turning to interactive advertising as it continues to prove its effectiveness in delivering cost efficient ROI.” 

IABNZ is predicting interactive advertising’s share to increase to 19% at the end of this year following total market growth of 11%. 

Laura Maxwell-Hansen, General Manager, of Yahoo!New Zealand and IABNZ Chair says this reflects the latest Roy Morgan figures which illustrate that “in total the internet accounts for 27% of our time spent with any media each week. This is up from 17% in 2007 while Television, Newspapers and Magazines have all declined.” 

MPA: 

ASA released their 2012 advertising spend figures, showing that magazines continue to be highly stable, holding their own in a contracting ad market. While the overall advertising market decreased by 0.7% ($15 million), the magazine industry increased by 0.5% ($1 million).

This increase has also contributed to a small increase in market share to 9.7% (up 0.1%).  It should be noted that these figures do not include revenue generated by newspaper inserted magazines.

Ten year trends show magazines’ share has been extremely stable with very little movement (down only 0.7 percentage points). So, while 2012’s increase was seemingly modest, this is a win for magazines, demonstrating the industry’s resilience in a year that continues to be tough for advertising expenditure.

This result, combined with solid readership increases has made 2012 a positive year for magazines. Our brands are durable and transcend channel definition, so the power of our mastheads continues to resonate with advertisers and readers, regardless of the media vehicle they are distributed within.

OMANZ: 

The Outdoor Media Association of NZ (OMANZ) today announced total outdoor industry revenue of $67m, with the ASA New Zealand advertising industry turnover figures for 2012 released.

Jo Davenport, the Marketing & Communications Manager for OMANZ said: “While the results are disappointing for the outdoor industry, they’re not surprising, considering the exceptional growth achieved during 2011. Out-of-Home achieved more than its fair share of RWC dedicated advertising revenue during 2011 and as a result was one of only two sectors to gain share. So it was to be expected that spend would be retrenched during 2012 in light of the RWC hangover.”

“However the last half of 2012 saw OMANZ reported outdoor revenue bounce back 18.6% over the first 6 months of the year. And we’ve seen positive growth continue into 2013, so we’re confident in the future for OOH. At the end of the day advertisers want to ensure their advertising spend gets results and this will become increasingly relevant as media habits of consumers continue to fragment. Research supports that OOH motivates consumer action and links strongly with both traditional media and newer social & mobile activity. So by adding OOH to the media schedule, marketers can improve the effectiveness and impact of their campaigns.” 

With focused activity by both OMANZ and the member media operators in the pipeline a positive year is expected for the OOH sector during 2013. 

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