IABNZ’s Internet Advertising Revenue Report Q4: Desktop leads the way, smartphones follow

Interactive advertising revenue reached $234.9 million in quarter three of this year, with desktop leading the way according to IABNZ’s Revenue report.

The report, by Staples Rodway, is the second of its kind after the new format was first introduced when the revenue figures from the first half of 2017 were reported.

The new report format breaks each device-category down into channels including general display: video, audio; sponsorship and native.

This time for Q3, it shows 29 percent ($69 million) of display, classified and directories revenue is served on desktop devices. It’s similar to the 30 percent of display, classified and directories revenue that desktop generated in the first half of this year.

Also buoyant was the mobile devices total (smartphone, tablet and other) of $16.2 million, or seven percent of revenue, across these three channels. In the first half of this year, it reached 6.5 percent of revenue.

Meanwhile, smartphone revenue reached $14 million, or six percent of total revenue. The smartphone revenue reported reflects revenue generated by New Zealand publishers and is net of search and social.

Across all devices, display advertising revenue landed at $40.5 million with general display advertising reaching $24.6 million.

Making up 41 percent of display advertising revenue is programmatic revenue (net of Google Ad Ex), that generated $16.7 million in Q3 (sourced from Standard Media Index, SMI). The Association of National Advertisers (ANA) in the US estimates that around 40 percent of revenue booked programmatically is finally attributed to media owners. Using this benchmark, some $6.7 million of programmatic spend is attributed to New Zealand publishers.

Meanwhile, video generated just short of $10 million over the period, an increase on the revenue it generated in the first two quarters of this year given it generated $14.8 million across both.

The report isolates sponsorship and native advertising with the former reaching $1.5 million and the latter generating $4.5 million.

Also included in the report is search, which topped $136.4 million in the quarter and now forms 58 percent of total revenue.

Social media revenue captured by New Zealand media agencies is reported by SMI and reached $13.3 million in Q3 (six percent of total revenue).

Revenue generated by the industry year to date is now $667 million and a strong Q4 showing should push revenue to a record year. After revenue from the first half of the year was reported, IABNZ was expecting full-year revenue to reach $996 million.

It’s important to note that given the change in collection and formatting methodologies, the new report is unable to reflect year-on-year variances.

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