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Ad economy in NZ sees over 18% growth in 2021: report

by Jean Cabico

-

December 8, 2021

magna advertising economy nz

New Zealand – As New Zealand ramps up its vaccination efforts against the COVID-19 pandemic, brands continue to spend aggressively on advertising, enabling the advertising economy in the country to increase by more than 18% in 2021 to reach US$2b (NZ$3.1b), according to a report by IPG’s media investment and intelligence arm, MAGNA.

In this environment, linear advertising revenues also increased by over 8.2%, which do not yet offset the declines suffered for linear ad formats in 2020, and linear advertising spending in 2021 was just 87% of its pre-COVID total. 

Moreover, the same report revealed that television revenues increased by over 15%, completely offsetting the pandemic crisis losses, and is also the strongest growth for television since 2003. Meanwhile, print continued to shrink by more than 6%, while OOH spending grew slightly by over 5%, but it is still just 68% of its pre-COVID total.

According to MAGNA, digital advertising revenues in New Zealand grew by +26% to reach US$1.2bn (NZ$1.9b). The spending was led by campaigns on mobile devices, which grew by +34%, representing 67% of total digital budgets. By format, growth was led by search with over 33%, social with more than 31%, and video with over 21%. 

“Digital will continue to take share compared to linear advertising formats, and by 2026 digital budgets will represent 72% of total advertising budgets,” said MAGNA.

Related Tags Report anz New Zealand MAGNA Advertising Economy
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