Interactive advertising leads the way in 2009
Source: IAB
Interactive advertising continued its growth in New Zealand and stood out among the nine advertising sectors as the only one to increase its revenue in 2009, according to figures released today by the New Zealand Advertising Standards Authority (ASA).
The ASA’s New Zealand Advertising Turnover scorecard for 2009 highlighted the impact of the recession on advertising spend last year, and the interactive sector’s resilience.
Interactive (or “online”) advertising spend by New Zealand advertisers increased from $193m in 2008 to $214m in 2009, and its share of overall advertising grew from 8.3% to 10.5% year-on-year. It is the first time interactive’s share has breached the 10% threshold.
The $21m increase in interactive advertising spend bucked the trend which saw a massive decline for the total industry of $272m as it dropped to $2045m in 2009 from $2317m in 2008. Interactive advertising grew by more than 10% against a total industry decline of 12%.
New Zealand Interactive Advertising Bureau (IAB) chairman Michael Gregg said times had been tough.
“The entire advertising sector was affected in 2009 and online wasn’t exempt from these challenging trading conditions – in particular, classified advertising was hit pretty hard. At the other end of the spectrum, search and display advertising experienced strong annual growth.”
Gregg said he was “bullish” about online continuing to chip away at securing market share from other advertising sectors.
“Advertising online is steamrolling forward. My take is that we’ve already passed magazine spend in the first quarter of 2010, and we should be seriously threatening radio for third position by the end of 2010, chasing print and television.”
Gregg said the IAB had previously predicted this good news for interactive in its November 2009 analysis of the New Zealand advertising market. He said search and directories advertising led the way with year-on-year growth of 32%, and spend in the classified and display sub-categories is also on the rise.
“Overseas, the ongoing trend toward online is compelling. For example, in the first half of 2009, UK companies spent more money on interactive advertising than they did on television advertising for the first time. Put simply, the internet is currently the UK’s biggest advertising medium.”
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