NZ ads up 8% in 2022 (so far)

AUCKLAND, Today: The advertising economy in New Zealand increased by 8% in 2022 to reach $ NZ3.5 billion ($ 2.5 billion), according to the latest Magna global report.

Australia’s ad market also grew by +8% this year to reach $ A22.3 billion.

The results reflect the economic growth environment, the report says.

GDP will continue its growth by +3.8% this year on a real basis, following a very strong economic rebound in 2021 of +4.9%. Mobility has returned to normal levels as inflation increases by +6.5% in 2022 and by +4.8% in 2023.

In 2023, total advertisers’ budgets will grow by another +7% to $ NZ3.7 billion.

The IMF forecasts an increase in global economic inflation by +3.9% in 2023 and real GDP up by +1.9%.

“By 2027, digital budgets will represent 71% of total advertising budgets.”

In this environment, linear advertising revenues are increasing by +3% – spending this year is at 93% of its pre-covid total.

TV pricing continues to increase as demand is significantly outstripping supply. Some price-sensitive brands have started to shift away from linear TV, but not yet to a significant degree.

Print is expected to stabilise at 0%, however out-of-home spending will see strong growth (+20%).

This year, global digital advertising revenues grew by +11% to reach $ US 1.5 billion.

Campaigns on mobile devices led ad spending, which will grow by +15% and represents 70% of total digital budgets.

By format, growth is being led by search (+16%), video (+12%), and social (+4%).

Looking forward, digital will continue to take share compared to linear advertising formats, and by 2027 digital budgets will represent 71% of total advertising budgets.

• More here
• magnaglobal.com
• Full report here