Advertising Turnover Figures for 2009

16 03 2010

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.

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One response

23 03 2010
MG

Hi John,

I’m slowly catching up on all the commentary on the 2009 media turnover figures compiled and released by the ASA.

I agree with your assessment that Interactive is taking market share from other media, however your suggestion that this could be “a recessionary trend” warrants a friendly response.

My prediction is that it’s a structural shift rather than being a recession-driven trend, albeit advanced by the recession dictating increased accountability, as you assert. This is evidenced by the post-recession lift in online advertising spend which is now back to near-record growth levels.

Of course, increased marketing budgets and freedom to invest again will see the rising tide lift all ships, but I believe that, if submissions to the ASA continue to be recorded on the same basis and maintain their accuracy, Interactive will pass Magazines and Radio in advertising revenue in 2010. ( I personally believe that Interactive is already bigger than Magazines due to our growth in CQ1.)

This will make Interactive the third largest medium in New Zealand, which should be no surprise to anyone in this industry, given its stellar growth in other western markets.

Cheers,

MG

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