No surprises as Q1 online ad spend climbs 22 percent to $120.2 million

Interactive and mobile advertising spend continued its upward trajectory by growing 22 percent from last year, according to IAB’s Q1 results.

Although the organisation didn’t release a full report for this quarter, outgoing chief executive Alisa Higgins says that the total interactive and mobile spend was $120.2 million, up from last year’s $99.2 million.

The survey includes 40 New Zealand media companies and agencies, including APN New Zealand, Fairfax Media New Zealand, TVNZ, Ogilvy, Y&R and OMD.

While it has become somewhat predictable for the interactive ad spend figures to increase significantly each year as advertisers follow the audiences to the digital realm, there are some interesting insights to be taken from the results in each of the categories.

As was the case last year, the survey was broken down into the following categories: search and directories; classifieds; total display, which includes the online video, programmatic and email sub categories; social media; and mobile.

Once again, search and directories enjoyed that lion’s share of the ad spend by accounting for 48 percent of the total amount (up from last year’s 41 percent). Higgins says that the growth indicates that New Zealand is catching up with international markets, where this category is often over 50 percent.  

Video, which last year contributed 12 percent, grew its share to 17 percent, indicating an increased willingness on the part of advertisers to create promotional footage for online purposes. 

Higgins says the classified section “remained steady” at 31 percent of total ad spend, and added that this result “bucks international trends, [which show]this channel decreasing”.

The most significant year-on-year growth was recorded in the mobile category, which shot up by 122 percent and now contributes 1.8 percent of overall ad spend (up from 0.9 percent last year).

While Higgins admits that this growth is impressive, she says that it still lags well behind Australia, where the mobile category enjoyed year-on-year growth of 300 percent.

Here’s last year’s chart for comparison:




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