NEW ZEALAND AD SPEND – WHAT’S DRIVING REVENUE IN 2018

Recently the Interactive Advertising Bureau New Zealand (IABNZ) released a report and analysis of advertising spend in New Zealand for Quarter 1 (Q1) of 2018.  The interactive industry being defined as advertising viewed on any screen using an internet connection (3G, 4G or WIFI).

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TOTAL ADVERTISING REVENUE

Overall advertising revenue is up for the first quarter of the year at a reported $244.5m in Q1 of 2018, an increase of 17% YoY.

WHICH DEVICE TO ADVERTISE ON?

Of the $244.5m revenue generated in Q1, 26% came from desktop which remains the dominant device bringing in $62.9 million, the YoY comparison shows this is down a slight 1%.

Mobile (smartphones, tablets & other) came in second accounting for 8% of revenue contributing $19.5m and a 50% YoY increase.

Within mobile, smartphones make up 87% of total mobile, ahead of tablets and other devices at $17m and a massive YoY increase of 65%.

The trend of increasing advertising revenue from mobile is expected to continue as more consumers spend time on mobile devices and less on desktop.

MOBILE APP ADS VS MOBILE WEB ADS

Within mobile, it is mobile apps that are driving advertisi3ng revenue as users spend more than 80% of their time on their mobile devices within apps, instead of on mobile websites.

Ads within apps are generally tolerated more by consumers, as they are often very similar to user-generated content and users don’t even notice they are being shown ads (i.e. Instagram carousel). As a result, these ads have a higher rate of engagement.

On the other hand, with no need to download the app, the ads on mobile websites are available for everyone who browses for the wanted content.

Mobile web ads have the upside of allowing advertisers to reach more diverse audiences and unlike in-app ads which often have network and platform-specific formats, advertisers can reach audiences on mobile web using standard ad formats.

CHANNEL PERFORMANCE – SEARCH, DISPLAY & SOCIAL

Search continues to dominate channel performance bringing in $151.1m in the first quarter of this year and making up 62% of total revenue.

Total Display advertising revenue landed at $35.7m up 13% YoY, with video at $7.5m up 15% YoY and native advertising 5.4m up 91%.

Social makes up 5% of total channel revenue at $11m.

In summary 2018 is looking like a record year with strong revenue figures across all channels & devices and it would appear with mobile use and video ads both on the rise, mobile video advertising is predicted to become very popular!

 

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All data and images are from IABNZ.

By |2018-06-13T12:15:05+00:00June 13th, 2018|Categories: Digital Advertising|

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