A snapshot of advertising spend and trends.
The total Standard Media Index (SMI) ad spend for January 2023 was the second highest level of January ad spend in history, but the total was down 8.5 percent year-on-year to $63.5 million against last January’s record total.
To put this in context, the total ad spend for January 2022 was 16 percent above the previous January total.
As a result for January, SMI NZ is reporting lower bookings compared to January 2023 for most major media but that should be seen in the context as this year’s total remains almost 8 percent above that of January 2021.
The total ad spend variants for January 2023 are as follows:
- TV – 19.3%
- Digital – flat
- Newspaper – 27%
- Radio – 26%
- Magazines – 16%
- Cinema – 8.1%
- Total market – 8.5%
As for February, Jane Ractliffe, Managing Director, Australia & New Zealand says that the market will face another tough obstacle as ad spend in February 2022 was also at a record level.
“However, the forward pacings are looking stronger, with SMI showing 86 percent of last year’s ad spend on traditional media was already confirmed. So, there’s a good chance the market will return to a stable footing in February,” Jane says.
In January, Out of Home Media Association Aotearoa (OOHMAA) announced that its members’ 2022 revenue was up 10 ppercent year-on-year, with the total revenue rising to $131m.
Contribution from Digital Out of Home (DOOH) revenue share remained stable for the second year running, accounting for 67 percent of 2022’s total revenue at $88.8m. Programmatic Digital Out of Home (pDOOH) also steadily increased its share in 2022. OOHMAA began recording pDOOH revenue in Q2 2022 when it accounted for 2.6 percent of DOOH revenue. By Q3, that share had almost doubled, rising to 4.3 percent and stabilising at 4.1 percent in Q4, demonstrating the potential the sector sees in this channel.
Natasha O’Connor, OOHMAA General Manager, says, “COVID restrictions and closed boards in H1 proved challenging and resulted in slower-than-predicted growth of 3.2 percent in H1. However, with all COVID restrictions lifted and internal borders opened, advertisers’ confidence to spend returned, driving significant growth for Out of Home of 18.1 percent YOY in H2.”
“We know that 2023 is going to be a challenging year due to high inflation, Russia’s invasion of Ukraine, and the continued effects of COVID—especially in China impacting the supply chain; however, how challenging the year will be, differs hugely depending on what economist you listen to,” adds Natasha.
This article was originally published in the March/April 2023 issue of NZ Marketing. Click here to subscribe.