Market Insights Advertising & Media Advertising

TV & Video Advertising - New Zealand

New Zealand

Ad spending in the TV & Video Advertising market in New Zealand is forecasted to reach €515.10m in 2024.
The largest market is Traditional TV Advertising, with a market volume of €313.30m in 2024.
When compared globally, the United States is expected to lead in ad spending with €134.10bn in 2024.
The average ad spending per user in the Traditional TV Advertising market is projected to be €46.53 in 2024.
By 2029, the number of TV Viewers in New Zealand is anticipated to reach 7.0m users.
In New Zealand, the TV & Video Advertising market is experiencing a shift towards digital platforms to reach tech-savvy audiences effectively.

Key regions: United States, India, China, Japan, United Kingdom

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The TV & Video Advertising market in New Zealand is experiencing significant growth and development.

Customer preferences: Customers in New Zealand have shown a strong preference for TV and video advertising. They enjoy the convenience and entertainment value that television and online video platforms offer. With the rise of streaming services and on-demand content, viewers have more control over what they watch and when they watch it. This has led to an increase in the consumption of TV and video content, creating a favorable environment for advertisers to reach their target audience.

Trends in the market: One of the key trends in the TV & Video Advertising market in New Zealand is the shift towards digital advertising. Advertisers are increasingly allocating their budgets towards online video platforms and social media channels, as they offer better targeting capabilities and higher engagement rates. This trend is driven by the growing popularity of mobile devices and the increasing amount of time people spend online. Advertisers are recognizing the importance of reaching consumers where they are most active, and digital platforms provide the perfect opportunity to do so. Another trend in the market is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to reach their target audience more efficiently. This technology has gained traction in New Zealand, as advertisers seek to optimize their advertising spend and maximize the effectiveness of their campaigns. Programmatic advertising also offers better measurement and analytics capabilities, allowing advertisers to track the performance of their campaigns in real-time and make data-driven decisions.

Local special circumstances: New Zealand has a unique market with a relatively small population compared to other countries. This presents both opportunities and challenges for advertisers. On one hand, the smaller market size allows advertisers to target their campaigns more effectively and reach a specific audience. On the other hand, it can be more difficult to achieve scale and reach a large number of viewers. Advertisers in New Zealand need to carefully consider their target audience and tailor their campaigns accordingly.

Underlying macroeconomic factors: The strong economic growth in New Zealand has also contributed to the development of the TV & Video Advertising market. A growing economy means more disposable income for consumers, which in turn leads to increased spending on goods and services. Advertisers are capitalizing on this trend by investing more in TV and video advertising to promote their products and services. Additionally, the stable political environment and favorable business climate in New Zealand have attracted foreign investment, further fueling the growth of the advertising industry. In conclusion, the TV & Video Advertising market in New Zealand is experiencing growth and development driven by customer preferences for TV and video content, the shift towards digital advertising, the rise of programmatic advertising, the unique market circumstances, and the underlying macroeconomic factors. Advertisers in New Zealand are adapting to these trends and leveraging them to effectively reach their target audience and drive business growth.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, internet users, consumer spending, and digital consumer spending.

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.