Online ad spend up 9 percent to $363 million: IABNZ/PwC

Online ad spend up 9 percent to $363 million: IABNZ/PwC

New Zealand's total online advertising spend in 2012 was up 9 percent from the previous, to a new high of $363 million, according to the Interactive Advertising Bureau New Zealand Insight report.

The IABNZ report, conducted by PwC, is in its sixth year. It surveys advertising agencies and direct customers, with this year's report including information on mobile and video.

The largest growth in online spend was seen in classified services, such as Trade Me and Seek (up 22 percent), followed by display (up 11 percent), and search (up 8 percent).

Mobile advertising was at its highest in 2012, with an annual growth of 176 percent.

Mark Cooplestone, chair of IABNZ's Mobile Advertising Council, says increasing smartphone penetration will see mobile advertising continue to rise in 2012.

"With over 50% of New Zealand consumers owning a smartphone, and tablets increasingly impacting screen time, we will continue to see hockey stick growth through 2013 as New Zealand starts to fall in line with international markets," he says.

IABNZ says online advertising growth in 2013 will come largely from paid search and display (including video and social media).

β€œFor 2013 we are forecasting an increase of 11% for the total market, erring on the conservative side compared to global predictions by ZenithOptimedia that interactive advertising will grow by 14.6% in 2013, while traditional media only increases by 1.7%,” says  Alisa Higgins, general manager of IABNZ.