Advertising boom set to continue

By IRENE CHAPPLE

A resurgence in brand advertising and confidence in the economy delivered an extraordinary 2003 for the advertising industry, and the boom is expected to continue this year.

Television advertising figures released yesterday by the Television Broadcasters Council show a record year, with revenue up 14.7 per cent to $516 million.

The gain was swelled by a December quarter with 16.5 per cent growth.

The increase came largely from price rises as the channels responded to high demand.

Double-digit growth in revenue is expected across most media advertising outlets.

January bookings and revenue are already up substantially compared to the same time a year ago.

But industry commentators are waiting for the so-called bubble to burst.

John McClintock of the Magazine Publishers Association says publishers "are cautiously optimistic [about 2004]".

"But they certainly won't be going out and buying a Versace suit or anything."

The figures for magazine revenue last year are not yet out, but McClintock expects a rise from around $173 million to around $190 million.

At the New Zealand Herald fat employment supplements have helped push advertising volume for the first three weeks of the year up by 17 per cent.

Marketing manager Pip Elliot said: "Demand outstripped supply ... In six weekends leading up to Christmas we had to turn ads away. And we have the same problem going into February."

Newspaper advertising last year is expected to add at least 11 per cent on its sales in 2002, coming in at well over $700 million.

Newspaper Advertising Bureau executive director Sonya Crosby said the revenue gain was being driven by demand rather than rate increases, which were minimal.

Given the demand, prices were expected to rise this year.

David Innes, executive director of the Radio Broadcasters Association, said he expected radio revenue last year to show an increase of 11 to 12 per cent over 2002.

Martin Gillman, of Total Media, said: "The strong media revenue is a sign of real confidence of the local economy. It bodes well ... It night be a bit of a catch-up on 2000/2001 when the media market was down."

Gillman - like many others in the industry - expected a slow-down by the second half of this year.

One of the main issues for advertisers in the year ahead, he said, was "coming to grips with the media inflation".

"They will be facing a tougher market. They've got to be a bit smarter in how they spend their money."