Growth of digital advertising revenue continues

Total digital advertising revenue in New Zealand reached $313.4 million in Q3 2019, which is up 12 percent on the same quarter in 2018 and makes eight consecutive quarters of double-digit growth.

The data is drawn from the IABNZ’s Digital Advertising Revenue Report released today by the IABNZ and Baker Tilly Staples Rodway.

This time, the methodology has been reviewed to better measure social media revenue; and this has been reflected in the report.

According to the announcement, using both Facebook ARPU (Average Revenue Per User) and Nielsen Online Rating Monthly Unique Audience for Facebook (does not include exclusive app usage), it has estimated Facebook revenue in New Zealand.

The announcement says that using the revised methodology, retrospectively applied, reported social media revenue in the IAB New Zealand Digital Advertising Revenue Report has increased on average approximately 150 percent over the past six quarters, from that previously reported, as at Q1 2018.

Nielsen NZ Connected Consumer Report (2017) indicated that about one fifth of Facebook users exclusively visit Facebook via mobile app each month (that is, not using a browser). Therefore, whilst the revised methodology indicates a substantial increase in reported Social media revenue, it is important to note that this is likely to be under-reporting by a further 20 percent.

Using the new methodology retrospectively applied, Social revenue topped channel growth, up 24.5 percent on Q3 2018, with revenue of almost $30 million in Q3 2019. Search followed, growing by 17.1 percent on the same quarter last year.

Classifieds and directories reported a decline in growth, down -3.7 percent on the same period last year, however total display increased by 4.5 percent on Q3 2018. General display increased by 19.5 percent on the same quarter last year, however audio topped this channel, with growth of 53.6 percent on Q3 2018.   

The largest shift in Total Display variance by advertising category, again was travel and accommodation, recording a year-on-year increase of 220 percent in Q3 2019.    

Total mobile (smartphone and tablet) grew by almost 24 percent Q3 2019.  

The IABNZ’s quarterly Digital Advertising Revenue Report is compiled from a survey conducted independently by Baker Tilly Staples Rodway on behalf of IABNZ each quarter. The results reported are considered the most accurate measurement of online advertising revenue since the data is compiled directly from information supplied by companies selling online advertising. All-inclusive, the report includes data reflecting online advertising revenue from 15 New Zealand online publishers across their websites and commercial online services.  

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