By 
The Interactive Advertising Bureau of New Zealand (IABNZ) and PricewaterhouseCoopers (PwC) has just released online advertising expenditure figures for Q1, 2010.
The report supports the Advertising Standards Authority (ASA) findings earlier this year:
- online advertising is now over 10% of all domestic media spend
- all other media reported declines in 2009
So there's a definite structural shift of traditional media spend moving to online marketing spend.
This global shift is occuring right here in Hawke's Bay and the last 6 months at Mogul have given us front-row seats to what is almost certainly the biggest period of transformation in the media since the advent of broadcast radio and TV. Increasingly, our clients are demanding integrated strategies for the new interactive marketing channels, especially blogs, Facebook, and Twitter.
The idea of instant success in social media through one-off 'viral campaigns' is a dangerous myth. An effective social media strategy depends on a long-term attitude change amongst marketing staff. I ran a workshop this week where the phrase 'ambient awareness' was used (by EIT's Joyce Seitzinger) to describe the effect you want to achieve in this new marketing space. Ambient awareness is the feeling of being physically close enough to someone to pick up changes in their mood from subtle cues. The ultimate aim of a social media marketer is to engage the customer at this deep level. In the past, this has been extremely difficult to do online because of the lack of interaction and real-time updates. A steady stream of well-organised, relevant, and original content delivered through the social media channels is key to building and maintaining your ambient awareness.
OK, I digress. Back to the report...
PricewaterhouseCoopers partner Chris Perree said:
"The 'buzz' around the online advertising industry continues to grow and we are noticing more knowledge sharing within the industry, and insights into what works well. It is encouraging to see how business decisions and the approach to online spend are changing. These insights translate into greater investment in the industry. The consistent growth in the total market year-on-year highlights the increased support for the industry. Breaking the 10% market share in 2009 for total advertising market spend paves a positive path for the year ahead."
I'm interested to hear thoughts from all of you marketing, PR, advertising, and web gurus out there. You can read the article here:
22:33, 27.05.2010
Well actually Matt the increase is nearer 11%
Interactive revenue in New Zealand increased $21 million or 10.9 per cent in 2009 compared to 2008. Interactive’s share of the local market rose from 8.3 per cent to 10.5 per cent. That’s a HUGE increase.
The total media spend for 2009 tumbled by $272 million, or 11.7 per cent, from 2008, dropping from $2.317 billion to $2.045 billion.
Nearly half of the fall was from a $137 million, or 18 per cent, drop in newspaper advertising revenue.
Last year was a bad one for many media with job- and cost-cutting at major companies including The Radio Network, TVNZ and MediaWorks.
According to The National Business Review, “NZ ad spend stats: internet poised to pass radio, magazines”.
Newscorp Chairman Rupert Murdoch believes nearly all newspapers will be digital within 10 years”. That was a year ago!
“In the UK companies spent more money online than television” – Michael Gregg, NZ Interactive Advertising Bureau.
Yes Matt the global shift is also occurring here at All About Hawke’s Bay the regional news website with the number of advertisers more than doubling so far this year.
We are proving to our customers that the internet really works.
A Real Estate customer of ours had his online ad seen 328,900 times with a click through number (more information) of 572. That in just his first month. He was his Company’s 15th best salesman in the whole country.
There are a lot of Real Estate people in Hawke’s Bay really struggling so that doing well in that industry, at the present, is a very savvy achievement.
Online advertising – it’s the proven path of the future
13:29, 03.06.2010
Hi Matt,
It makes sence that Internet advertising is on the increase, as all of my colleauges and friends use a social network whereas I don’t know any of them that recieve a newspaper subscription.
Personally I haven’t picked up the yellow pages or any other print directory for years.
Radio is traditionally hard to monitor and TV is great for brand awareness and national chain stores, however a local small or medium enterprise might not get the returns needed to justify a TV campaign.
This YouTube click makes interesting watching on Social Media Marketing for NZ businesses http://www.youtube.com/watch?v=-LynoKpVNnY
If anyone is interested in learning more I think the team at http://www.mogul.co.nz should be your first stop.
13:36, 03.06.2010
Cool. Thanks Mark. You should tell us all about RepHub.
15:51, 03.06.2010
Oh if you insist!!
Because social media has taken off around the world, we decided to create a social network for NZ businesses to use.
http://www.rephub.co.nz is a new social network for Corporate Kiwis and Sales Professionals to:
– Network/Socialise with other professionals
– Increase sales with Sales Tips from NZ & overseas sales experts
– Share advice by starting your own blog or comment on others blogs
– Deals via Twitter
We are trying to create a social network that’s useful to most kiwi corporate’s…we’ve taken ideas from LinkedIn by keeping it business orientated, Facebook with profile pic, Messenger by having a Private Message function where you can PM other members.
By adopting these great ideas and adapting it to the NZ market, we aim to be the way Corporate Kiwi’s Connect.
We’ve found a number of advertisers keen to attract the corporate customers, and aim to be a place for their customers to rave about their products and attract even more customers (now there’s a cheap way to use social media to increase sales…as you’ll learn at Mogul’s Social Media Course!).