2013 Sees Kiwis Spending More on Online Advertising.

2013 Sees Kiwis Spending More on Online Advertising.

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New Zealands online advertising spending has gone up during the second quarter of 2013. In fact, when compared to 2012’s second quarter, an increase of 30 percent was noted according to figures collected from the Interactive Advertising Bureau (IAB). The IAB has gathered data from around 40 agencies and major media owners in New Zealand.

The following chart tracks first quarter ad revenue since 1996; dollar figures are rounded.


Total spending has reached $120.56 million, which is a 21 percent increase relative to the first quarter. This can be attributed to online advertising spending in various categories, such as social media, mobile ads, search engines, online directories, banner ads and online classifieds.

With increasing smartphone use, it should be no surprise that the sector which showed the most growth was mobile advertising. In fact, a 73 percent increase in mobile ad spending was reported compared to last year’s second quarter. Mobile ads grew by 15 percent from 2013’s first quarter. Even though mobile advertising is growing fast, it only represents 1 percent of the total spent on online advertising.

Spending on online video ads reached $4.37 million, which is up 20 percent from last year and 49 percent from the current year’s first quarter. Online video use is growing among residents of New Zealand, with 1.66 million people in the country watching video content on the Internet. The average person that watches online videos sees about an hour and a half of online video content each week.

Social media ads on sites like Facebook, Twitter and Tumblr has gone up by 17 percent. While the big players in the social media world are still Facebook and Twitter, other sites are picking up steam as well, which has attracted advertisers who are willing to use their platform to spread their message. Compared to last year, Tumblr has seen a 75 percent increase in membership. Pinterest grew by 253 percent during the same time period.

Even though mobile ads and social media are popular ways to advertise, search and directory spending isn’t seeing any signs of losing energy. In fact, a 54 percent growth in search and online directory advertising has been reported compared to last year. Display ads have gone up by 31 percent from the first quarter.

Chris Perree, one of PwC’s partners, has stated that more money was being spent on online advertising all over the globe, due to the fact that it is now becoming more common for people to own more Internet-enabled devices (smartphones, tablets, media players, etc.), which makes them spend a higher amount of time online.