Market Insights Advertising & Media Advertising

Social Media Advertising - New Zealand

New Zealand

In New Zealand, ad spending in the Social Media Advertising market is projected to reach €346.30m in 2024.
The ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 11.47%, leading to a projected market volume of €596.00m by 2029.
In a global context, the majority of ad spending will be generated China, which is expected to reach €78,490.00m in 2024.
Within the Social Media Advertising market in New Zealand, 71% of total ad spending is expected to be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in New Zealand is anticipated to reach 5,188.0k users by 2029.
New Zealand's social media advertising landscape is increasingly prioritizing authentic local content, reflecting a growing consumer demand for genuine engagement and community connection.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in New Zealand has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing importance of digital advertising. Customer preferences in New Zealand have shifted towards online platforms, with social media becoming a popular channel for communication and entertainment. This has led to an increased demand for social media advertising, as businesses recognize the potential to reach a large and engaged audience. Additionally, consumers in New Zealand are becoming more receptive to targeted advertising, as they appreciate personalized content that is relevant to their interests and needs. One of the key trends in the Social Media Advertising market in New Zealand is the rise of influencer marketing. Influencers, who have a large following on social media platforms, are increasingly being used by brands to promote their products or services. This trend is driven by the desire to reach a specific target audience and leverage the trust and credibility that influencers have built with their followers. In New Zealand, where word-of-mouth recommendations are highly valued, influencer marketing has become an effective strategy for businesses to increase brand awareness and drive sales. Another trend in the market is the growing importance of video content. With the rise of platforms like YouTube and TikTok, video has become a popular format for consuming content. This has led to an increased demand for video advertising on social media platforms, as businesses seek to capture the attention of their target audience. In New Zealand, where internet penetration is high and mobile usage is prevalent, video advertising has proven to be an effective way to engage consumers and convey brand messages. Local special circumstances in New Zealand also contribute to the development of the Social Media Advertising market. The country has a relatively small population compared to other markets, which means that businesses need to be more targeted in their advertising efforts. Social media advertising allows businesses to reach specific demographics and geographic areas, ensuring that their messages are seen by the right audience. Additionally, New Zealand has a strong culture of supporting local businesses, which has led to the growth of social media advertising as a cost-effective way for small and medium-sized enterprises to promote their products or services. Underlying macroeconomic factors also play a role in the development of the Social Media Advertising market in New Zealand. The country has a stable economy and a high level of internet penetration, which provides a favorable environment for digital advertising. Additionally, the government has been supportive of the digital sector, investing in infrastructure and initiatives to promote innovation and entrepreneurship. These factors have contributed to the growth of the Social Media Advertising market in New Zealand and are expected to continue driving its development in the future.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.