Record spend in May for NZ ad market

New Zealand’s media agency market continues its strong start to the new financial year with another month of record ad spend in May and the total value of media investment up 6.2 percent year-on-year to $ 99.2 million.

This has meant the New Zealand ad market continues to deliver record levels of investment over the first five months of the calendar year, with the total value of advertising investment now eight percent above the total for the same five months last year and six percent above the previous record period in 2017.

Jane Ractliffe, SMI AU/NZ Managing Director, says New Zealand seems to one of the few ad markets immune from the more cautious view being adopted in other countries.

“It’s quite incredible to see such a strong level of continued growth within the NZ ad market as we’re clearly not seeing any impact from rising inflation or any of the global issues that are creating uncertainty in other markets,” she says.

Ractliffe said the most recent updates to SMI’s Australian and US ad spend databases indicated softening ad demand in May, but the New Zealand market was clearly bucking that trend.

“In New Zealand we’re continuing to see the market underpinned by key product categories reinvesting post Covid, and this month it’s the Airlines/Travel Agents category which more than doubled its media investment compared to May 2021, and at the same time Government Category ad spend remains at record levels, up 40 percent year-on-year in May,” Ractliffe said.

This month the strongest performing major media were Digital (+20.1 percent YOY), Radio (+11 percent) and Outdoor (+16.7 percent). But traditional Television ad spend fell back by 6.8 percent as more investment instead went into Digital Video-based campaigns (+28.5 percent YOY).

This brings the market’s growth over the first two months of the financial year to a healthy 9.7 percent with the value of Digital media bookings up by 22.8 percent, Radio investment up 17.4 percent and Outdoor ad spend up 9.9 percent .

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