The drive by businesses to leverage the internet in the hope of connecting with increasingly tech-savvy consumers has continued to accelerate this quarter, according to figures from the Interactive Advertising Bureau of New Zealand (IABNZ) and PwC.
The country’s total spend on online advertising reached $88.74 million in the third quarter, up 5.3% from the previous quarter and 26.5% compared with the same period in 2010.
IABNZ predicts the country’s annual online ad spend will grow to just under $400 million by 2013. With TV and newspaper spending in decline, this could equate to 19% of the overall market.
PwC partner Chris Perree says the latest jump was the largest year-on-year increase since 2008.
"Total online advertising spend to date for 2011 is now $241 million,” Perree says, "which represents a remarkable 94% of the total 2010 spend.
"Advertisers are striving to stay relevant and engaging with ever more savvy consumers.”
The government’s investment in Ultra Fast Broadband is expected to widen the audience further, as well as creating opportunities for more interactive, cross-platform campaigns.
"Advertisers should analyse which platforms and technologies are right for them and their target audiences," Perree says, "whether it be through social media pages, online video, real-time ‘geotagging’ deals, or mobile advertising within smartphone applications.”