The New Zealand media agency advertising market has finally returned to growth in May with a 2.3 percent year-on-year increase in agency bookings to $87.3 million.
Standard Media Index’s (SMI) Forward Pacings data – which shows the value of confirmed advertising already within the payment system – shows the momentum is set to continue with the value of June 2019 advertising bookings (excluding digital) already 5.2 percent ahead of June 2018 at $60 million.
Among the major media, the outdoor industry reported the strongest growth for the month with a robust gain of 31.9 percent while digital media finally returned to growth with its total ad spend was up 4.3 percent. Radio bookings lifted 3.7 percent while cinema’s grew 42.5 percent.
The banking sector provided the largest dollar growth in any category, up 40.5 percent or by $2 million from the same month last year. Banking was also one of the biggest spenders on online video ads in February according to digital ad format data released by SMI.
The Tourism-Accommodation-Travel services category also maintained its recent record of largest increases in demand with the value of May bookings growing 143.8 percent year-on-year.
SMI Australia/New Zealand managing director Jane Ractliffe says it was clear a substantial lack of business confidence had stymied New Zealand’s advertising market for a full year, but that was finally now beginning to change.
“Looking at SMI’s Product Category ad spend data, we can see that this calendar year only a third of the categories we track have grown the value of their media investments and that figure reduces again when we look at the financial year-to-date data.”
She says thankfully that’s begun to change in May with the total market finally back in the black, with more than half the product categories growing their advertising investment.
“And SMI’s forward bookings show that trend is continuing in June with the value of guaranteed advertising payments already 5.2 percent ahead of June last year despite the payment data being extracted at least four working days prior to the end of the month.’’
“And a full month before we start reporting on the July advertising market we can already see the total value of market bookings to be 75.4 percent of last year’s total, which clearly indicates the market should see three consecutive months of growth.’’
Meantime, for the first five months of this calendar year, the New Zealand Agency market is reporting a 3.5 percent decline in the value of media agency bookings.