New Zealand – New Zealand’s advertising economy will be increasing by 8% in 2022 to reach NZ$3.5b, according to data from Mediabrands’ MAGNA.
The report found that the country’s economy will be growing by more than 2.7% on a real basis in 2022, levelling out from the rebound in 2021 with more than 5.6%. In this environment, linear advertising revenues are increasing by over 2%. The linear advertising spending this year is at 90% of its pre-COVID total.
Meanwhile, television revenues are increasing by over 2% and are expected to continue their decline at -3-5% from 2023 to 2026, while print is shrinking by -1%, however, out-of-home spending will grow over 13%, reaching about ~90% of its pre-COVID total. With this, MAGNA predicts home to surpass pre-COVID measures by 2023.
The report also revealed that TV pricing continues to increase as demand is significantly outstripping supply. Some price-sensitive brands have started to shift away from linear TV, but not yet to a significant degree.
For digital advertising, the data shows that revenues are growing by 13% to reach NZ$2.2b, while campaigns on mobile devices are leading ad spending, which will grow by more than 17% and represents 70% of total digital budgets. By format, growth is being led by video with over 15%, search with over 15%, and social with over14%. Looking forward, digital will continue to take share compared to linear advertising formats, and by 2026 digital budgets will represent 70% of total advertising budgets.
