|Online advertising spend in New Zealand increased by almost 25 per cent in 2011 to NZ$328.11m with the biggest growth coming from search and directories. The IAB is predicting that online ad spend will increase its share of the total ad market in New Zealand from 12 per cent to 19 per cent by the end of 2013.
The total increase for the last 12 months was 24.16 per cent compared to 2010, according to figures from the IAB NZ and PwC Insight report.
Spend on search and directories was up 45.6 per cent to $135.33m, with classifieds up 15.5 per cent to $94.23m. Display advertising increased by 11.2 per cent to $98.56m.
Liz Fraser, IABNZ chair and general manager MSN New Zealand said: "The full year results are exceptional with 24.16 per cent growth year-on-year for total online revenue. No other media will be reporting growth anywhere near this figure, which shows advertisers are shifting their marketing budgets rapidly to online. Even with a softened economy, digital advertising is making tremendous gains. Online's share of total advertising spend is likely to be 15 per cent in 2011 (final figures to be released on 21 March 2012), which is slowly catching up to the internet's share of the time people spend using this medium, at 24 per cent."
For the first time the IAB released figures on mobile ad spend which stood at $632,092. Online video increased from $1.9m in the first quarter of 2011 to $2.6m in the final three months of the year.
In the last quarter of 2011 total ad spend rose by 20.5 per cent to $87.1m. Display advertising increased by 4.8 per cent to $1.27m on Q3 - the biggest quarter for display since PwC started measuring in 2007.
Sandra King, group sales and marketing manager at Fairfax Media said: "Another great quarter, and the full 2011 year, with a significant set of firsts for the online industry. The biggest change being revenue in display advertising overtaking classifieds for the first time. This highlights online display advertising becoming a destination for brand, driven by the new innovative advertising opportunities on offer by publishers. In 2012, we expect advertisers to further utilise these options, plus add online video and mobile to the mix, especially because of the strong audience performance of these. New Zealand still lags investment in video and mobile advertising when compared to the rest of the world and we believe is set to change."