Online advertising in the first quarter of the year grew 67.2 per cent from a year ago to new record $46 million, according to research published today.
IAB Insight said the advertising was up 17.91 per cent up on the previous quarter despite the first quarter traditionally beingslower than the fourth quarter.
The IAB report shows dramatic increases over last year in all three categories of advertising measured by the report. Display was up 68.3 per cent to $11.5m, classified up 52.4 per cent to $19.2m and Search & Directories up 93 per cent to $15.1m.
IAB chief executive Mark Evans said the increases were not unexpected.
"We've been saying consistently for some time that we expect strong growth as New Zealand plays catch-up with other markets, and that's what we're seeing here.
"This growth is clear evidence that more advertisers are starting to spend more money online, and we expect that trend to continue for some time to come as more and more advertisers start to spend more of their advertising budgets online."
IAB chairman Lee Williams said new advertisers were starting to spend online while existing advertisers were spending more, and there was growth right across the sector.
While companies overseas were spending 15-20 per cent of their advertising budgets online, in New Zealand online advertising was still less than 6 per cent of total advertising.
