AUCKLAND, Today: The advertising economy in New Zealand increased by 8% in 2022 to reach $NZ3.5 billion ($2.5 billion), according to the latest Magna global report.
Australia’s ad market also grew by +8% this year to reach $A22.3 billion.
The results reflect the economic growth environment, the report says.
GDP will continue its growth by +3.8% this year on a real basis, following a very strong economic rebound in 2021 of +4.9%. Mobility has returned to normal levels as inflation increases by +6.5% in 2022 and by +4.8% in 2023.
In 2023, total advertisers’ budgets will grow by another +7% to $NZ3.7 billion.
The IMF forecasts an increase in global economic inflation by +3.9% in 2023 and real GDP up by +1.9%.
“By 2027, digital budgets will represent 71% of total advertising budgets.”
In this environment, linear advertising revenues are increasing by +3% – spending this year is at 93% of its pre-covid total.
TV pricing continues to increase as demand is significantly outstripping supply. Some price-sensitive brands have started to shift away from linear TV, but not yet to a significant degree.
Print is expected to stabilise at 0%, however out-of-home spending will see strong growth (+20%).
This year, global digital advertising revenues grew by +11% to reach $US 1.5 billion.
Campaigns on mobile devices led ad spending, which will grow by +15% and represents 70% of total digital budgets.
By format, growth is being led by search (+16%), video (+12%), and social (+4%).
Looking forward, digital will continue to take share compared to linear advertising formats, and by 2027 digital budgets will represent 71% of total advertising budgets.
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