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Interactive advertising experiences continue to rule: IAB/PwC report

Interactive advertising has just had its biggest quarter ever according to the latest IAB/PwC report. Total spend in New Zealand was $142.37 million, with the second quarter up 24 percent year-on-year.

The report showed mobile advertising was the biggest mover, jumping 198 percent from  $2 million to $4.7 million. Search and directories jumped 38 percent and video 32 percent.

Interestingly, comparing the first half of this year to the first half of last year, New Zealand agencies are not spending very much at all on social media – it dived drastically from $4.9 million to just $900,000.

According to the ASA, in 2013 interactive spend jumped from $366 million the previous year to $471 million (for the entire year)  (that’s 16.9 of total advertising spend to 20.7 percent), which seemed to indicate that marketers are transferring their expenditure from traditional to online channels.

IABNZ chair Spencer Bailey says: “No one should be surprised that interactive advertising continues its strong growth, however when you compare us internationally we still lag behind. In markets like the US and UK, we are seeing television losing market share to brand building on the internet and mobile the main driver of ad spend growth.”

Spending on search engines made up the lion’s share of online advertising spend for the second quarter of this year, at 51 percent.

Classifieds followed at 25 percent, down from 31 percent in quarter one. Of the quarter one result, then-CEO Alisa Higgins said at the time the classified spend “remained steady” on the last quarter, which “bucks international trends, [which show]this channel decreasing”. Evidently New Zealand is now catching up with international trends.

For Q2 2014, mobile spend was only 1.8 percent of total online advertising spend, and social media only 0.4 percent.

The IAB/PwC Report was established in 2007, with interactive and mobile advertising spend provided by more than 35 advertising agencies and publishers.

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