Advertising - New Zealand

New Zealand

Ad spending in the Advertising market in New Zealand is forecasted to reach €2,474.00m in 2024.
The largest market is Search Advertising with a market volume of €968.90m in 2024.
When compared globally, the United States will lead in ad spending with €394.90bn in 2024.
Within the Advertising market of New Zealand, 76% of total ad spending is expected to come from digital advertising in 2029.
The average ad spending per capita in the Search Advertising market is projected to be €183.90 in 2024 in New Zealand.
Moreover, Advertising market of the 87% revenue in New Zealand will be generated through programmatic advertising in 2029.
In New Zealand, the advertising market is seeing a shift towards digital platforms, with a focus on targeted online campaigns to reach specific audiences.

Key regions: United States, China, Europe, Asia, Japan

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Analyst Opinion

The Advertising market in New Zealand is experiencing significant growth and development in recent years.

Customer preferences: Customers in New Zealand have shown a strong preference for digital advertising channels. With the increasing penetration of smartphones and internet connectivity, consumers are spending more time online, making digital platforms an effective way to reach them. Social media platforms, in particular, have gained popularity among consumers, with a large number of New Zealanders actively engaging with brands on platforms like Facebook, Instagram, and Twitter. This shift in customer preferences towards digital advertising has led to a decline in traditional advertising channels such as print and television.

Trends in the market: One of the key trends in the advertising market in New Zealand is the rise of influencer marketing. Influencers, who have a significant following on social media platforms, are being leveraged by brands to promote their products and services. This form of advertising has proven to be highly effective in reaching target audiences and driving engagement. As a result, more and more brands are partnering with influencers to create authentic and relatable content. Another trend in the market is the increasing use of data-driven advertising. With the availability of vast amounts of consumer data, advertisers are able to target their campaigns more effectively. By analyzing consumer behavior and preferences, advertisers can create personalized and targeted advertisements that resonate with their target audience. This data-driven approach to advertising has proven to be more cost-effective and efficient, leading to its growing popularity in the New Zealand market.

Local special circumstances: New Zealand has a relatively small population compared to other countries, which presents both challenges and opportunities for advertisers. On one hand, reaching a large audience can be more difficult due to the limited population size. On the other hand, the smaller market size allows advertisers to have a more targeted approach and focus on specific segments of the population. This has led to the emergence of niche advertising agencies that specialize in catering to specific industries or demographics.

Underlying macroeconomic factors: The New Zealand economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has led to increased consumer confidence and spending, which in turn has boosted the advertising market. As businesses look to capitalize on the growing economy, they are investing more in advertising to reach potential customers and drive sales. Additionally, the government has been actively promoting New Zealand as a tourist destination, attracting more international visitors. This has created opportunities for advertisers to target both domestic and international audiences. In conclusion, the Advertising market in New Zealand is experiencing growth and development driven by customer preferences for digital advertising, trends such as influencer marketing and data-driven advertising, local special circumstances including a smaller population size, and underlying macroeconomic factors such as a strong economy and increased tourism.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).