Interactive ad spend exceeds $900 million

Interactive ad spend continues to boom with a record $923 million in 2017 according to IABNZ’s Ad Spend Report Q4 – a seven percent year-on-year increase.

Looking at devices, desktop services dominated with 29 percent ($266.5 million) of total revenue for the year, while mobile devices (smartphone and tablet) attracted seven percent; with smartphones at 54.7 million (six percent) and tablet with $8.4 million (one percent). The smartphone revenue reported reflects revenue generated by New Zealand publishers and is net of search and social.

The ‘other’ category, at $1.5 million (0.2 percent), has also been included to capture revenue associated with smart TV apps, gaming consoles, wearables etc.

Across all devices, display advertising revenue landed at $150 million, general display advertising reached $94.3 million, and video generated just short of $35 million over the year. The sponsorship category earned $5.5 million (four percent) while native contributed $16 million (11 percent) to the total display number.

Programmatic revenue (net of Google Ad Ex) realised $60 million in 2017, which was 40 percent of display revenue.

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 $24 million of programmatic spend is attributed to New Zealand publishers.

The classifieds and directories category produced $181 million for the year, 20 percent of total revenue, while the search category topped $541 million in the year and now forms 59 percent of total revenue. Together, search and directories captured $722 million (79 per cent of the total interactive spent) which is a giant increase from $490.71 million in 2016.

As reported by Social Media Index (SMI), social media revenue captured by New Zealand media agencies reached $51 million in 2017 (six percent of total revenue).

Last year, IABNZ announced it would be updating the format of the New Zealand Interactive Revenue report in an effort to keep the report up to date with changes in the industry.

IABNZ chief executive Adrian Pickstock said as the industry continues to evolve at a rapid pace, it’s important the report continues to keep pace with these changes in order to provide the most relevant and accurate reporting possible.

Given the changes in collection and formatting methodologies, it’s important to note the new report is unable to reflect year-on-year variances at a granular level.

Nevertheless, for an indicative year-on-year comparison, IABNZ asked contributors to submit their 2016 totals using the new format. Total online advertising for 2016 using the new format was $860 million therefore the like-with-like 2016/17 comparison reflects a seven percent increase.

The social media and search collection methodologies remain unchanged to last year. These figures are not included in the device and channel analysis.

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