TV advertising revenue hits record $516m

By IRENE CHAPPLE

Television advertising revenue reached a record $516 million last year.

The Television Broadcasters Council said the figures were a result of strong economic growth and successful television programming.

Revenue was up 7.7 per cent - or $37 million - on 2001.

Council executive director Bruce Wallace said last year was a big year, with excellent audiences for local programmes such as Mercy Peak, The Strip and news and current affairs.

He said advertising was strong in banking, motoring, telecommunications and fast-moving consumer goods.

Rate card prices were last year increased on the back of demand and could increase again this year.

Colin Caldwell, director of sales at TV3, said "where there is a demand there will be an increase", but that prices were aligned with audience performance.

Lynne Clifton, of the Communication Agencies Association, said the increase was about confidence.

"We had that awful 2001 where we had a horrible first half and then September 11 happened. Then the industry has had uncertainty about the [TVNZ] charter ... TV got really booted around."

The industry had settled and that was being reflected in the advertising figures, said Clifton.

Caldwell said advertising bookings this year were already "well ahead" of the same time last year.

Advertisers were keeping watch on the possibility of war being declared on Iraq. A short-term war would have minimal affect on advertising in New Zealand, but a lengthy war would hit industries such as cars and travel.

Caldwell said any impact would have a "lag factor" of about six months.

Figures for radio and print for last year are not yet out, but television does not appear to have cannibalised other advertising mediums. Instead, the pie appears to have grown bigger.

Clifton picked that overall advertising spending would increase 5 per cent on the 2001 total of $1.6 billion.