TV rules ad spends in NZ, Internet catching up fast

MUMBAI: The latest figures from the Advertising Standards Authority (ASA) show television captured the most advertising spending in 2011, pushing newspapers into second place. The internet is fast closing in on both in New Zealand.

The ASA revealed that TV accounted for 28.4 per cent of total advertising spend during 2011 and increased from $607 million in 2010 to $618 million in 2011.

Newspaper continued to be at No. 2 with 26.7 per cent share but registered drop in spends from last year’s $627 million to $582 million.

In 2011 online maintained its lead over radio, which it had established in 2010, as revenue jumped from $257 million (12 per cent of total ad spend) to $328 million (15.1 per cent).

As the emerging new media rose faster than old media, the total ad spending increased marginally in 2011 to $2.179 billion.

The report also added that search ads still account for the majority of spending in the new medium.

The figures for television consist of all cash revenue, including agency commission, excluding GST from free to air (including prime) and pay television.

The newspapers figure includes all cash revenue, including agency commission, excluding GST Goods and Services Tax) from all daily, Sunday and community newspaper titles in New Zealand. The revenue includes display, retail, classified and insert advertising.

The figures for online advertising expenditure are based on gross amounts charged to advertisers and inclusive of any applicable agency commissions. The 2011 figures include display Advertising which includes banners, skyscrapers, rich-media, streaming advertising, email, online video and other forms of interactive display advertising; classifieds, which include revenues from ads placed to buy or sell an item or service and search and directories advertising which includes revenues from online directories and search engine listings.

In case of radio the figure includes all cash revenue, including agency commission, excluding GST from members of the Radio Broadcasters Association (RBA). Actual returns comprised 99 per cent of the total radio advertising revenue for 2011. The total also includes an estimate for non-RBA members, Kiwi and student radio based on direct industry knowledge and projections based on market share.

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