Online advertising: growth, growth and, yawn, more of it

  • Advertising
  • May 25, 2010
  • StopPress Team
Online advertising: growth, growth and, yawn, more of it

Figures released today show New Zealand online advertising spend experienced healthy growth in the first quarter of this year, keeping pace with, and in some cases outstripping, international trends.The Interactive Advertising Bureau of New Zealand (IABNZ) and Pricewaterhouse Coopers online advertising expenditure figures for Q1 2010 show that total spend for the first quarter was $53.32m, up 12.31 percent from Q1 2009 ($49.26m).

Display and classifieds were the star performers, rebounding from last year's recession to record lifts of 15.27 percent and 16.74 percent respectively year on year. Search and directories advertising also showed a healthy increase of 10.85 percent from Q4 2009 spending.

The seasonal summer holiday quarter-on-quarter drop in display was 2 percent less than in 2009.

As calculated by the Advertising Standards Authority earlier in 2010, online advertising now makes up over 10 percent of all domestic media spend.

"This is a great result especially when you look across the water at Australia's latest online ad revenues which grew 17 percent year-on-year,” says Alisa Higgins, IABNZ marketing manager. “While the U.S. hit $5.9 billion for the first quarter of 2010, representing a 7.5 percent increase over the same period in 2009."

A ZenithOptimedia report shows that global ad expenditure is accelerating as confidence in the economy returns. The internet increased its share of the global ad market from 10.5 percent in 2008 to 12.6 percent in 2009, overtaking magazines for the first time, with an expectation this share will increase to 17.1 percent in 2012.

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