This week Interactive Advertising Bureau New Zealand released, prepared together with PwC, its Q2 2014 online advertising spend summary. The latest report is very important for two reasons. First of all – for the first time NZDMI are the official data contributors to this analysis. And secondly – Q2 2014 was the largest quarter ever, with over $142 million invested in online adverting over the last 3 months alone. That equals to a 24% growth year-on-year, and shows once again there doesn’t seem to be a limit on how much can be invested in this channel. So what contributed to this significant growth?
Search dominates Q2 2014 online advertising spend
That’s right – search and directories now account for more than 51% of all dollars invested in online. With $72m spent on this category alone, paid search continues to be that opportunity area when it comes to online activity, with a record 38% YoY increase. Driven largely by demand, the size of this category changes proportionally to the change in our online habits. The more we search, the more smart devices we use – the more opportunities we create for advertisers to bid on. That’s why it is safe to assume the level of search investment will continue to expand as we turn to Google more and more often.
The online video growth
This scenario doesn’t apply only to search. The scale of growth for online video advertising might not be the same, but is enough to be the second fastest expanding channel. We recently highlighted the importance of online video as a part of your future content and advertising strategy and the Q2 2014 online advertising spend figures only prove that. With over $7m spent on video ads alone, this, without a doubt, is the fastest growing visual channel. Between YouTube, TVNZ and TV3, we see more and more original video content available online only. Similarly to search demand, Video creates more opportunities for advertisers to invest in this channel – driving the recorded high 32% YoY increase.
What does it mean for your business?
Luckily for you search and online video are our main focus areas. In Q2, we delivered nearly 500,000 paid search clicks for our clients, across national and international campaigns. And this month alone our video campaigns already generated over 5,000 video views on YouTube, Facebook and other platforms. Thanks to our targeting techniques we are able to find the perfect size opportunity for your budget, so if you’re ready to start exploring the fastest growing channels in online advertising – talk to us today.
*All figures come from the IABNZ and PwC Ad Spend Q2 2014 report