Desktop computers, smartphones, tablets, wearables – we live in an age where the majority of people own at least one, if not multiple, of these electronics. Because of increased adoption in consumer technology, it’s no wonder that the total online advertising spend for Q3 2018 increased by 13% YoY to $265.8M. While this figure is split amongst various advertising mediums, the overall increase in digital ad spend by companies throughout New Zealand is significant – businesses are spending more on growing their online presence to reach consumers across multiple devices and channels.
Global Trends vs. Local Landscape
ZenithMedia’s quarterly research report for Q3 2018 estimates that global social media adspend will continually increase by 16% YoY until 2020. This is opposite to what we saw locally in New Zealand: there was a 23% decrease in social media adspend nationwide YoY in Q3 2018. In addition to paid social ads, Zenith notes that “dark social” is rapidly growing; this term is used to describe private chats via social messaging apps like Messenger, WhatsApp and WeChat. Brands are using chatbots to increase their presence in these “dark” channels and need to rethink their analytics to keep track of content being shared within messaging apps.
While there was a steep decline in paid social adspend in New Zealand YoY, the dollar figure is not insignificant; kiwi companies still spent $10.2M on social media ads in Q3.
Q3 New Zealand Online Advertising Spend Summary
The total online advertising spend in New Zealand for Q3 2018 was $265.8M, bringing the estimated total YTD to a whopping $765.7M. Further, we saw steady growth QoQ this year, starting with a 4.46% increase from Q1 to Q2, and now a 4.07% increase from Q2 to Q3.
Digital Advertising Spend by Device
IAB splits devices into four categories: Desktop (PC or laptop via internet connection), Smartphone (smartphone device via 3G, 4G or wifi), Tablet (tablet device via 3G, 4G or wifi) and Other (devices like Smart TVs, Connected TVs, wearables or gaming consoles). While all four device categories experienced YoY growth, the most significant growth was in the Other category at 272% increase YoY. While Other still only accounts for 0.25% of total revenue, this staggering growth makes this category one to watch.
Digital Advertising Spend by Channel
Channels are reported across all devices and split as Display (all general banner ads, video, audio, sponsorship and native ads), Social (paid social media platforms), Search (paid search) and Classifieds & Directories (commercial, personal and other classified ads and directory listings). As mentioned earlier, there was a 23% decline YoY in paid social media spend which is contrary to the global trend. Display overall saw a 3% drop YoY due to a 19% decline in general display ads, though New Zealand saw growth in all other segments, most notably 57% increase in sponsorship and 41% increase in native ads.
We’re looking forward to receiving the Q4 and 2018 reports from IAB so we can see how last year fared compared to previous years. In the meantime, contact us today to discuss your 2019 digital marketing strategy.