AUCKLAND, Today: NZ’s media agency market is reporting a good start to the new calendar year, with advertising demand lifting 2% to a market total of $58.2 million as key product categories delivered strong growth, according to the latest SMI data.
The positive market looks set to continue through February, where the value of advertising inventory is already 99.7% of the total achieved in February 2019.
SMI AU/NZ MD Jane Ractliffe (who’s based in Sydney) told M+AD: “The New Zealand market has returned to growth after three months of softer demand.
“It’s great to see the market back in the black after losing some direction following such a huge record month in September with the market buoyed by the Rugby World Cup and local elections,’’ she said.
“It’s also pleasing that the NZ advertising market is showing far more positivity than its Australian cousins with that market far more rattled by global business fears.
“As such Australian media agencies are seeing ad spend back 8.2% in January but in stark contrast NZ marketers are acting more like those in the US and UK where we have seen continued growth in advertising expenditure.”
“The NZ ad market shows much more positivity than in Australia, which is far more rattled by global business fears.”
“Radio was the greatest beneficiary of the higher January advertising demand in NZ, with its agency advertising bookings soaring 21.9% to $6.9 million.
“Television also remained strong (+2%) as did Outdoor (although somewhat more subdued than in recent months with growth of 0.2%) and the value of bookings to the Digital and Magazine media fell slightly (-0.8% and -1.7% respectively).
“Among the key product categories we have seen strong growth from the utilities/fuel/energy market (+28%), government adspend (+19.7%) and airlines/travel agents (+14.2%).
“Indeed, among the 10 largest categories in the NZ market the only one reporting lower January spend is Communications, where bookings are back 5.2% compared tothe same month last year.
“The strong January market also means that for the first seven months of this financial year we are seeing the ad market is now up 3% compared to the same period last year.”
About Standard Media Index
SMI 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 126 digital product categories.
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