New Zealand’s Ad market worth $2.17bn in 2010 and online gets a bigger slice

The Advertising Standards Authority (ASA) today reported that advertising revenue across all main media was 2.137 billion dollars for the 12 months ended 31 December 2010. The 2009 total was 2.045 billion dollars.
The turnover includes data from newspapers, television, radio, magazines, outdoor, cinema, addressed mail, unaddressed mail and interactive media.

The big news was the movement of online advertising from 5th place up to 3rd in share of spend.

From the IAB – Online advertising has achieved a 12% share of total advertising spend in New Zealand moving up from fifth spot in 2009 to be the third largest medium in 2010.

Apart from Online and Television, all other media either lost market share or remained stagnant with Radio and Magazines slipping into 4th and 5th places respectively.
Liz Fraser, IABNZ Chair says, “Reaching the number three position in advertising industry turnover a year ahead of our own expectations might be considered a historic milestone for New Zealand’s digital sector. Contain your excitement for future reports, I reckon, because history will show that we’re only just warming up. The upside is huge and many opportunities lie untapped. The vibrations in agency land are good and strong and as they continue to bring new creative approaches to what is still a nascent medium, then we can reasonably expect additional quantum growth – 25 percent for 2011 isn’t out of the question.”

The full table showing ad spend by media is available on the ASA website by following this link: http://www.asa.co.nz/industry_turnover/media_turnover_with_explanatory_notes_2010%20final%20.pdf

 

February Media Update

Online ad spend is booming, magazine readership resuming and all eyes are on the special events at the end of the year.  This month our compilation of media stories contains a certain buzz of good news which has been missing from the market over the last 18 months

Latest Articles

Magazines: ACP Magazines, the leaders in the magazine market, have had a bumper increase in readership. Story here.

Television: Are you ready to meet U? It’s TVNZ’s new youth channel. Story here. Also, a brief update on Breakfast’s viewership under Petra Bagust and Corin Dann, here.

Interactive Marketing: The Interactive Advertising Bureau of New Zealand reports a 19% jump in online media revenue to $250 million.  See which parts of the industry have driven this growth. Story here.

Media Market Overview: Remember, remember, the election is in November, and there’s some kind of major sporting event prior to that. Read Dale’s thoughts here.

Campaign Profile: Unitec Institute of Technology initiate the “Change Starts Here” campaign in groundbreaking fashion. Story here.

Consumer Websites: Group discount websites are so hot right now – from a media owner’s perspective. Click here to see which fingers are in which pies.

For your amusement: Take your pick from a cynics guide to online marketing here, or media360’s Day on the Green photos here.

TVNZ announces U – a new youth channel

TVNZ today announced that it will launch U, a new commercial free-to-air digital channel on March 13th.  It will feature real life and factual entertainment programming targeted at kiwis aged 15 to 24.

One of the key features of the new channel is it’s close integration with social media website Facebook.

TVNZ’s Eric Kearlyey explained “the backbone of the U schedule is U live, a hosted block from 4pm to 7pm daily, featuring chat and commentary driven by a U live Facebook application.  Peoples comments, profile pictures and polling activity will be automatically pulled through in the broadcast.”

A showreel for U is available to view at http://www.u.tvnz.co.nz (you’ll need quicktime to view it) and the U Facebook page is here http://www.facebook.com/tvnzu?v=info

The TVNZ web page for U goes on to explain the channels premise:

Aimed at the 15-24 year old audience, U is social TV, featuring reality and factual entertainment programming.

Broadcasting from midday to midnight, it’s got everything you will need.

And from 4pm – 7pm seven days a week, there’s a live hosted show called U live which will take social networking to a new level.

Here’s how the channel’s going to break down:

4pm – 7pm: U live –  a daily live show with chat, interviews and music videos – as well as your input.

7pm – 8.30pm: General reality shows

8.30pm – 10.30pm: Each night will offer a different theme and experience:

• crush – shows about dating and relationships
• sound – music shows
• U tv  – the first chance you’ll get to choose which shows New Zealand sees
• guts – it’s all about the extreme sports
• dude – male skewed programming
• ursula – female skewed programming
• U win – competitive reality programmes

10.30pm – 11pm – Get your gaming on as U gives you an insight into the gaming world.

FOUR LAUNCH DATE ANNOUNCED

Source: Mediaworks Press Department

The new look channel FOUR will launch on Sunday February 6, Mediaworks TV confirmed today.Fans of The Simpsons can look forward to the long awaited All New Simpsons episode, ‘Elementary School Musical’starring The Flight of the Conchords, which will play up first on Sunday February 6 at 6pm as the show finds a newhome exclusively on FOUR.

 

The exciting new look FOUR will target 18-49 year-olds (previously 15-39) and will have wide ranging appeal with itsbroad line-up of programming. As the home of pure entertainment, FOUR has a host of key new shows that offersviewers a fresh and consistently exciting line-up.

 

Brand new shows to FOUR include Joel McHale’s comedy about returning to college – Community, Total Wipeout, aspinoff of Wipeout hosted by the ever popular Richard Hammond, Outsourced, a new comedy about a US cataloguebasedcompany whose call centre gets outsourced to Mumbai, and spy-drama Covert Affairs – starring Golden Globenominee Piper Perabo.

 

Other favourites moving exclusively to FOUR include America’s Next Top Model, (the one where they come to NewZealand), The Biggest Loser, all new episodes of The Simpsons and Top Chef: Just Desserts, a spin-off of theEmmy-winning Top Chef series.

 

Strong children’s programming sees the return of perennial favourite Sesame Street to New Zealand screens for thefirst time in over a decade. This will screen with a host of other shows in the dedicated FOUR Kids blocks that runfrom 6am-10am, and 2pm – 4pm weekdays.

Drew Neemia and Shannon Ryan will remain key talent on FOUR with a highly interactive new show screeningweekday afternoons.

 

Mediaworks TV CEO, Jason Paris says as promised, FOUR will be a channel which appeals to anyone looking forgreat entertainment.“We’re here to push the boundaries and freshen up entertainment.”

Happy New Year with The Naked and Famous and Strongbow Cider

Our favourite kiwi band, The Naked and Famous, seem to be finally reaping the rewards of their hitherto “indie-darling” career.

Adverts can provide a substantial cash injection to a band as well as positive word of mouth.

This latest Australian advert for Strongbow Cider – Summer Blossom – has our cousins across the Tasman asking the big question – What’s That Song?

Well Aussies, to answer your question, it’s “Young Blood” by The Naked And Famous. Now go out and buy it please.

Media Update – September 2010

Magazines: Major moves in the Magazine Market – NZ Mags takes over Pacific’s major titles and push  ACP for dominance. Story here.

Television: It’s reporting time and Sky TV have good news, despite not cracking the 50% penetration mark. Story here.

Websites: Does life stop at 49? We have a guest post from Richard Poole, co-founder of Grownups.co.nz  Story here.

Various: On the lookout for Cool New Things? We have some here including  Canadian Club stepping up on Facebook and Winkball explained.

Directories: They launched a chocolate bar earlier this year, now see what Yellow are doing with their more traditional products, directories. Story here.

Internet Advertising: Plateau? What’s a plateau?  The latest internet advertising figures are here.

Client Profile: Paper Plus wants to see you or your Daddy dance! Find out more here.

Social Media: LinkedIn growing fast in New Zealand. Story here.

July Media News

Cinema: The 3D effect is providing a boost for cinema groups in New Zealand.  See the numbers for the year so far and the lineup for the year ahead here.

Out of Home: With 12 locations and 1.6 million shopper visits a week, what can Westfield do for you? Click here.

Online: 11 years is a long time for an online brand to be around. Rather than rest on its laurels nzgirl.co.nz is pushing ahead with a new look and a more social approach. Click here.

Planning: The media360 2011 events calendar – you can’t get through the year without it. Download your copy here.

Rich Media Advertising: Eyewonder is the big name in rich, online display advertising creative. For some examples of what you can do with it click here.

Research: Nielsen has been reappointed as the supplier of Television ratings data in New Zealand. Click here.

Social Media: Had enough of Facebook yet?  Too tired to tweet? We ask if the social media marketing backlash has begun? Click here.

Obsessions: What oddball items are attracting our attention this month? Click here.

Media News for June 2010

Research: Nielsen is making moves to measure PVR usage in New Zealand. Client Services Director Rebecca Lloyd reviews their presentation. Click here.

New Technology: Foursquare is the latest social networking tool.  It’s got the social media community buzzing but how does it work and just how many kiwis are using it. John investigates. Click here.

Australia: Dale finds a silver lining for online retail in the big island to our west. Click here.

Ambient Advertising: Stuck for ideas?  View our gallery of ambient advertising creative. Click here.

Television: Viewer numbers are reaching record levels – so what content can we expect from the networks. Click here.

Mobile Advertising: iPhone, iPad, iAds – is Steve Jobs shaping the future of advertising? Click here.

Team News: Welcome to our new team members. Click here.

Obsessions: What oddball items are attracting our attention this month? Click here.

Apple to Debut iAds on July 1

Apple to Debut iAds on July 1

Over US$60 Million in 2010 Commitments from Leading Global Brands

AUCKLAND, New Zealand – 8 June, 2010 —Apple® today announced it will debut its iAd mobile advertising network on July 1 on iPhone® and iPod touch® devices running its iOS 4 software platform. iAds combine the emotion of TV advertising with the interactivity of Internet advertising, giving advertisers a dynamic and powerful new way to bring motion and emotion to mobile users. iAd will kick off with mobile ad campaigns from leading global brands including AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios. Apple has iAd commitments for 2010 totaling over US$60 million, which represents almost 50 percent of the total forecasted US mobile ad spending for the second half of 2010.*

“iAd offers advertisers the emotion of TV with the interactivity of the web, and offers users a new way to explore ads without being hijacked out of their favorite apps,” said Steve Jobs, Apple’s CEO. “iAds will reach millions of iPhone and iPod touch users—a highly desirable demographic for advertisers—and provide developers a new way to earn money so they can continue developing free and low cost applications.”

“iAd will allow Citi to reach millions of people on their iPhone and iPod touch,” said Lisa Caputo, executive vice president and CMO, Citigroup. “iAd gives us a remarkable level of creativity for creating ads to connect with our current and future customers in a more interactive style than ever before.”

“iAd is going to revolutionise mobile advertising,” said Rob Master, North American media director, Unilever. “With iAd, we’ve been able to create some of our most powerful and compelling ads ever. iAd is the perfect mobile format to reach and engage with our customers.”

iAd, which is built into iOS 4, allows users to stay within their app while engaging with the ad, even while watching a video, playing a game or using in-ad purchase to download an app or buy iTunes® content.

Developers who join the iAd Network can easily incorporate a variety of advertising formats into their apps. Apple will sell and serve the ads, and developers will receive an industry-standard 60 percent of the iAd Network revenue, which is paid via iTunes Connect.

iAds require iOS 4, which will be a free software update via iTunes 9.2 or later for iPhone and iPod touch customers. iOS 4 will work with iPhone 3G, iPhone 3GS, iPhone 4, and second and third generation iPod touch (late 2009 models with 32GB or 64GB).

*Percent of forecast based on an annual run rate basis, starting on July 1. US Mobile Display Advertising forecast from the report by JP Morgan, “Nothing But Net—2010 Internet Investment Guide,” January 3, 2010.

Apple ignited the personal computer revolution with the Apple II, then reinvented the personal computer with the Macintosh. Apple continues to lead the industry with its award-winning computers, OS X operating system, and iLife, iWork and professional applications. Apple leads the digital music revolution with its iPods and iTunes online store, has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.

Advertising Turnover Figures for 2009

The Advertising Standards Authority today released the official figures for advertising spend in New Zealand.  This compilation of revenue figures, broadly based on actual revenue rather than rate card, contains a number of interesting developments (see attached file media_turnover_final_2009)

Overall the advertising market contracted with spend reducing from $2,317 million in 2008 to $2,045 million in 2009 (calendar year).

Newspaper revenue continued to decline with a $137 million drop year on year. Advertising in newspapers was at $623m, its lowest level since 2001 and well off the high of  $830m in 2005.

Interactive media grew by $21m year on year but this was not enough for it to overtake magazines as the 4th largest area of media spend.  Magazines managed to attract $217m, $32m less than the previous year.

Television spend also declined to $570m, a drop of $77m over the previous year.

In summary, the overall decline of 13% while significant, was not as radical as some commentators had supposed. The key element in these numbers is the confirmation that interactive is taking market share from traditional media. We feel this may be a recessionary trend  as one of the key benefits of interactive is its measurability and accountability compared to other media.

For commentary contact John Buckley, General Manager, media360 on 09 918 7718.