NZ ad market recovery hiccup

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SYDNEY, Wednesday: New Zealand’s media agency market experienced a pause in its advertising recovery in January, reporting a slight decline in advertising expenditure after two months of growth, according to the latest report from Standard Media Index AUNZ.

SMI MD Jane Ratcliffe said: “Total media agency bookings dipped 0.8% despite a 13.5% increase in digital adspend and strong TV bookings (+8.2%) despite a much lower result for the subscription television market due to the Covid-related absence of the ASB Classic tennis broadcast.

SMI NZ: January 2021 Ad Spend Trends
Major Media Variance
Digital 13.6%
Television 8.2%
Outdoor -21.4%
Radio -12.6%
Newspapers -39.7%
Other -7.7%
Magazines -59.4%
Cinema -43.4%
Grand Total -0.8%

“Growth in Government category adspend (+52.5% in January) continues to underpin the NZ ad market but it was also great to see a return of some Travel-related advertising with the Tourism/Accom/Travel Services category emerging as the second fastest growing this month (+145%).

“The advertising market was poised to return to growth in February, with total adspend (excluding Digital media) so far back 6.1% with two trading days still to go.

“Already for February we can see higher TV bookings, and Radio also looks to be returning to growth with the very early February detail showing that media back just 4.7% due to strong spending from the Government and Utilities product categories.

“Indeed the early February data already shows Government adspend to have soared 42.5% (ex Digital) while the Non Alcoholic Beverages (+60%) and Utilities (+33%) categories are also delivering strong early growth across the media industry.

“The 13.5% increase in Digital ad spend for January was driven by higher demand among numerous Digital sectors, with the value of bookings to Social Media sites lifting 16.4%, Video Sites growing their adspend by 30.6% year-on-year and this month the Content Sites sector also reported significant growth.

“The Content Sites sector in NZ mostly comprises the websites of traditional news media and magazine content producers and this month we’ve seen the level of adspend to these sites collectively jump 26.4%.

“And the largest increases in this adspend was seen by NZME and Stuff, which indicates advertisers are delivering more of their premium Digital campaigns to these quality news media sites.”

About Standard Media Index
Standard Media Index was established in 2009 in Sydney and has offices in New York, London and Madrid. SMI partners with leading global media buying agencies to provide independent, accurate and timely advertising expenditure data to its clients to facilitate informed analysis of the media sector and product category expenditure. Data is sourced directly from advertising agencies’ billing systems and then aggregated to show the combined picture of media Agency adspend across all major media, media sectors, 40 product categories and more than 140 sub categories.

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