AUCKLAND, Wednesday: IABNZ’s Internet Advertising Revenue Report for Q3 2018 was released today with total revenue reaching $266m for the quarter representing 13% YoY growth.
A survey is conducted independently by Staples Rodway on behalf of IABNZ each quarter. The results reported are considered the most accurate measurement of online advertising revenues since the data is compiled directly from information supplied by companies selling advertising online.
All-inclusive, the report includes data reflecting online advertising revenues from 16 New Zealand online publishers across their websites and commercial online services.
Highlights:
- 2018 Q3 – $265.8m 13% YoY growth
- Q3 Total Mobile Category (Smartphone, Tablet) – $18.8m 18% YoY growth
- Q3 Total Display Revenue (Across all devices) – $39.4m 3% YoY decrease
- Q3 Search Revenue $164.2m – 62% of the total a 20% YoY growth
- Q3 Social Revenue $10.2m – 4% of the total a 23% YoY decrease
- Q3 Fastest growing display channels:
- Sponsorship – $2.4m – 57%
- Native – $6.3m – 41% YoY
The total of mobile devices (smartphone, tablet and other) generated $19.6m, 7% of revenue across these three channels and achieved 21% year-on-year growth while desktop display revenue generated $71.9m (27%) of the grand total. Classifieds & Directories the largest channel on desktop, generated $48.3m (18%) of the grand total.
Smartphone revenue reached $16.5m or 6% of total revenue and 18% year-on-year growth. The Smartphone revenue reported reflects revenue generated by NZ publishers and is net of Search and Social.
Across all devices, Total Display advertising revenue reached $39.4m with General Display advertising reaching $20m a 19% year-on-year decrease.
Video generated just over $10m over the period a 10% year-on-year increase.
Sponsorship made up 6% ($2.4m) of the display category up 57% while Native contributed $6.3m to the Display number up 41% year-on-year.
“The data suggests that there is a move away from agency bookings of programmatic media to direct buying.”
Programmatic Revenue, which IABNZ sources from Standard Media Index (SMI) and is agency spend only, realised $19.1m in Q3 (48% of Total Display Revenue and net of Google Ad Ex).
The Association of National Advertisers (ANA) in the US estimates that around 40% of revenue booked programmatically is finally attributed to media owners. Using this benchmark some $7.6m of programmatic spend can be attributed to NZ publishers.
With a 26% YoY increase the data suggests that there is a move away from agency bookings of Programmatic media to direct buying.
The Search category topped $164m in the quarter and now forms 62% of total revenue.
Social media revenue which is also sourced from SMI captured by NZ media agencies reached $10.2m in Q3 (4% of total revenue). With a 23% decrease YoY the data suggests that there is a move away from agency bookings of Social media to direct buying.
Report Methodology
The IABNZ Revenue Report is formatted by Device and Channel.
The report filters revenue by device-type, that is, by mobile, desktop and tablet. An ‘Other’ category has also been included to capture revenue associated with smart TV apps, gaming consoles, wearables etc.
Each device-category is broken down into channels including general display; video, audio; sponsorship and native.
Programmatic Advertising revenue figures are now sourced from Standard Media Index (SMI). The reported revenue reflects the value of actual placements as reported by Agency Trading Desk bookings and bookings onto independent DSPs. The number reported is net of Google Ad Exchange.
Social Media and Search collection methodologies remain unchanged to last year. These figures are not included in the device and channel analysis.
Year on Year Comparisons, now into it’s second year, the report is able to show year-on-year comparisons.
Interactive Advertising is advertising viewed on a desktop PC, laptop or mobile device and accessed via an internet connection, 3G, 4G or Wifi.
About IABNZ
The Interactive Advertising Bureau of New Zealand (IABNZ) is the not-for-profit trade association for interactive and mobile advertising established in 2007. It promotes growth and best practice for advertisers, agencies and media owners. IABNZ is part of an international group of IAB organisations around the world, providing access to global resources. The IABNZ empowers the media and marketing industries to thrive in the digital economy, promoting growth and best practice for advertisers, agencies and media owners.
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