Media ad spend figures shows increase

Interactive advertising was catapulted from fifth to third biggest advertising earner. Photo / Thinkstock

Advertising figures for last year show there has been a recovery from the 2009 media spending slump.

Interactive and online media passed magazines and radio to be the third largest recipient of advertising revenue, according to figures from the Advertising Standards Authority.

Advertising consultant Martin Gillman said that even media which had lost market share had increased ad revenue.

The increases in revenue were often by small amounts but the fact that it was up indicated that the recovery of the ad market had been better than expected.

Total spending last year was $2.137 billion compared with $2.045 billion in the 2009 slump and $2.317 billion during 2008.

Interactive advertising - which has enjoyed a strong rise off a relatively low base since 2003 - was catapulted from fifth to third biggest advertising earner - behind newspapers and television.

Interactive's share was 12 per cent compared to 10.5 per cent in 2009.

The total advertising spend on media increased by around 4.5 per cent or $92 million last year.

Of that increase, $43 million went to interactive including display and classified which makes up about one third of interactive revenue in this country.

The Interactive Advertising Bureau said that ad spending on interactive was up 20 per cent year and predicted growth exceed would exceed 20 per cent this year.

Newspapers continued to slide in market share - from 30.5 per cent share in 2009 to 29.3 per cent share last year.

But news websites nzherald.co.nz and stuff.co.nz - owned by newspaper publishers APN News & Media and Fairfax Media - would likely both have benefited from a boost in interactive revenue.

Newspaper revenue peaked in 2007 at $826 million and last year was $627 million.

In comparison, TV revenue has not slid so rapidly and its market share was up last year.

Television revenue last year was $607 million or 28.4 per cent share, compared to $570 million and 27.9 per cent and $647 million and 27.9 per cent in 2008.

Radio's market share was $241 million (an 11.3 per cent share) last year compared to $236 million (an 11.5 per cent) in 2009.