AUCKLAND, Thursday: New Zealand’s media agency market has had a difficult start to the 2019 year with total national marketer adspend falling 5.2% from the same quarter last year as the market remains plagued by a lack of business confidence.
SMI NZ reported that the lower March result continues almost 10 months of reduced advertising demand.
Defying the trend are Outdoor and Cinema that are reporting higher bookings in this period.
SMI says domestic banks were the largest investor in Digital Outdoor followed by communications advertisers then Food/Produce/Dairy and Consumer Electronics advertisers.
But the overall market continues to be pulled down by lower Government category adspend from last year’s election-related high with the total for the March quarter back 15.5%. Banks are also reducing their media investment with their bookings back 10% and the Food/Produce/Dairy category has also significantly reduced its media investment by 17% this quarter.
“Defying the trend are Outdoor and Cinema that are reporting higher bookings in this period.”
SMI AU/NZ managing director Jane Ractliffe said the April data will also be affected by the long Easter and Anzac Day period, so the market was unlikely to return to positive territory until May.
Ractliffe said the release of the Outdoor Ad Format data was very significant given the market has never before been able to know the degree to which the digitisation of Outdoor inventory has grown the media.
And we can see in the data that there’s still plenty of room for further growth in Outdoor given more than 30% of the advertising expenditure on Billboards, for example, is still for static inventory,” she said.
“This data also gives our subscribers a clear view of the product categories growing this media which delivers a new layer of knowledge to sales teams across the media spectrum.”
About Standard Media Index
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. SMI works with media agencies in more than 15 global markets.
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