q1 2018 interactive advertising spend report - iab.org.nz...• as of q3 2015 the iabnz revenue...

Q1 2018 Interactive advertising spend report

1.1 Introduction

Background

The report includes revenue information collected from companies including:• Census of major NZ media owners • Revenue data from major NZ Agency trading desks & Independent DSP’s*• Agency revenue from social media companies*• Estimation of Google

IABNZ has produced the NZ Ad-spend figures since 2007 Digital Ad-spend includes – online, mobile, tabletData shown by:

• Device (Desktop, Smartphone, Tablet, Other) • Channel (Video, General Display, Audio, Sponsorship, Native, Classifieds and Directories, Search)• Industry Sector (Agriculture, Automotive, Business Services, Computers etc.)

*Sourced from Standard Media Index (SMI)

Year on Year Comparisons• This report is now able to show Year-on-Year comparisons.

Advertising viewed on any screen using an internet connection 3G, 4G or WIFI

4

What is the interactive industry?

This report includes the following devices:

DesktopOnline advertising viewed on a desktop PC or

laptop accessed via an Internet connection

TabletAdvertising that is viewed on a tablet

device accessed via 3G, 4G or Wifi

SmartphoneAdvertising that is viewed on a

smartphone device accessed via 3G, 4G or Wifi

Other

Only digital media spend is reported to ensure fair comparison to other mediaFor each device the channels reported are: Video, General Display, Audio, Sponsorship, Native, Classifieds & Directories, Search

Advertising that is viewed on a device such as Smart TVs, Connected TV Devices (Freeview Plus

On demand, Apple TV, Chromecast), Gaming Consoles, and Wearables

Which channels go where?

General Display

Native

Video TV-like advertisements that may appear as in-page video commercials or before, during and/or after a variety of context in a player environment including but not limited to streaming, video, animation, gaming, music video content. This definition includes broadband video commercial that appear in live, archived and downloadable streaming content.

All banner advertising including pop ups, floating and interstitial advertisements, downloaded applets which instantly interact with the user, and ads that change when the user's mouse passes over it.

Paid advertising that matches the form and function of the platform upon which it appears. Native advertising could take the form of written content, video or audio.

Sponsorship

DISPLAY Audio Pre roll, mid roll, post roll audio advertising, where advertisements target consumers through Podcasts, and Internet radio.

Advertisements that link a brand with related content or context in a form that is clearly distinguishable from a banner, button, or other standardized ad unit.

SEARCHAds on paid search.

SOCIAL Ads on paid Social Media Platforms.

CLASSIFIEDS & DIRECTORIES Revenue from ads placed in order to buy or sell an item or service which includes recruitment, real estate, automotive, personal and other classified ads & directory listings.

1.2Methodology

• Actual revenue is obtained directly from companies deriving revenue from the sale of interactive advertising

• Aggregate amounts reported are rounded to the nearest $10,000

• Based on the information provided by the contributors, approximately 81% of the data in this document is derived from participants whose underlying financial records have been, or will be, audited by an independent auditor

• Data submitted by participants is kept confidential and figures are only ever reported by IABNZ in aggregated form

• Variance checks are performed on data submitted by participants for reasonableness in light of past submissions and general industry trends

• Expenditure is based on gross amounts charged to advertisers and inclusive of any applicable agency commission

• As of Q3 2015 the IABNZ Revenue report reflects vendor-based Agency bookings as reported by the Standard Media Index (SMI) for the quarter. The value quoted does NOT include advertisements booked directly with Social networking websites by advertising brands.

• As of Q1 2017, Programmatic Advertising revenue figures are now sourced from Standard Media Index (SMI). The reported revenue reflects the value of actual placements as reported by Agency Trading Desk bookings and bookings onto independent DSPs net of AdX.

This report includes an estimation of Paid Search revenue for New Zealand. The methodology was developed in consultation with other IAB’s and is sense checked by leading New Zealand based Search Engine Marketing agencies.

Reported and estimated revenue

REPORTED REVENUE ESTIMATED REVENUE

Display advertising category definitionsAgriculture, Forestry & FishingThis category includes any business engaged in growing crops, raising animals, growing and harvesting timber, and harvesting fish and other animals from farms or their natural habitats or supplying goods and services to the producers.

AutomotiveAny business related to the automotive sector including vehicles (cars and motorbikes), associations, equipment, retail (car dealers), fuel, maintenance, parts and accessories.

Business Services and Office ProductsAll companies providing services to other businesses such as accounting, legal and taxation services; advertising and marketing services; printing and publishing services, and employment/personnel/training Services. This category also includes all office products and services including stationery, furniture, photocopiers and retailers.

ComputersComputer hardware, software, peripherals, systems, connectivity including internet service providers, games machines, printers and dedicated retail and services.

Food & BeverageAll foodstuffs products which also includes corporate, pet food, confectionery, and, all beverages including alcohol and retail liquor. This category also includes supermarkets and food stores.

Government DepartmentsServices and CommunitiesAll information on any form of Government from national to local and including political parties. This category also includes services/utilities such as gas and electricity suppliers; all educational institutions from pre-school to tertiary and, not-for-profit, community and charitable organisations.

Health, Beauty and Pharmaceuticals This category covers toiletries and cosmetics including baby products, cosmetics, personal care products, fragrances, hair and skin care, soaps and cleaners, and pharmaceutical products including remedies, medicines, lotions, vitamins, diet, corporate, dressings, health services and retail (i.e. pharmacies).

Home & Garden This category includes all materials used in home improvements (e.g. paving, roofing & guttering, security, paint, wallpaper and retail); household electrical products (e.g. personal products, batteries, white-ware, brown-ware); household items (e.g. cookware, light bulbs, wraps, sprays, cutlery, china, storage); household cleaning products (i.e. any product used in cleaning any area of the home including laundry products); household furnishings for the home (not covered by household electrical) i.e. beds, floor covers, occasional furniture, soft furnishings; home heating (includes all home heating or cooling products, services and retail); and gardening including garden furniture, BBQ's, tools, plants, equipment and retail.

InsuranceAny business, either corporate or individual, involved with insurance-related products or services. This includes motor vehicle insurance, house and household contents insurance, life insurance, health insurance, corporate and professional insurance, and brokers.

Investment, Finance, Banking Any company/financial institution providing banking and/or investment products, services or advice; from banks to bonds, credit cards to travellers cheques.

Leisure, Entertainment and Media This category includes any organisation that provides goods and services related to lifestyle and/or entertainment, or is incorporated in leisure time activities ie. venues, events, sports, music, movies, boating, games of chance, fitness centres, dedicated retail. This category also includes any business related to mass communication i.e. mediums such as television, radio, newspapers, magazines, websites and cinema.

Manufacturing & Construction This category includes units mainly engaged in the physical or chemical transformation of materials, substances or components into new products (except agriculture and construction).

Real Estate Any business providing commercial or residential property advice, information and retail services for the sale and management of real estate, includes residential housing, sections, commercial property, property developers and real estate agents.

RetailThis category includes major retailers such as department stores, discounters and warehouses. Also included is fast food, restaurants and other food outlets, shopping centres, bookstores, as well as direct response (e.g. Chrisco Christmas Club), function centres and support services, hair and beauty salons, craft shops, television/video rental and servicing and other specialist stores not already excluded.

Note: The Retail category excludes: Supermarkets and food stores (covered under food & beverages); agricultural trading societies and laboratories, automotive dealers, retail liquor, clothing and footwear retail, computer retail, gardening centres and retailers, home improvement retail, furnishing and flooring retail, home heating retail, industrial contractor retail, music and entertainment (DVD/video etc.) stores, office retail, chemists, real estate agents, telecommunications retail, travel agents.

TelecommunicationAll aspects of telephony. This includes telephone hardware, accessories and services, mobile phone hardware accessories and services, telecommunications retail, corporate, and connectivity including service plans and packages.

Travel & Accommodation Any business providing products, services and/or information and advice related to the travel and tourism industry. Any travel services including carriers, accommodation, tours, destinations and retail (i.e. travel agents).

OtherAny business that does not meet the general parameters of any of the preceding definitions. This may include clothing/accessories covering all areas of clothing, footwear and accessories including retail; agricultural (covering services, animal remedies and veterinary, chemicals, buildings and equipment and retail); industrial (including products, machinery, equipment, tools and retail); smoking (including all smoking products and anti-smoking products and organisations); transportation (covering commercial transportation services), pet products, manufacturing & construction, wholesale trade and education & training services.

AutomotiveAny classified advertising related to the automotive sector including vehicles (cars and motorbikes), equipment, retail (car dealers), parts and accessories, servicing.

PersonalsAny classified advertising related to personal advertising including dating sites, services offered, births deaths and marriages, sundry personal announcements etc.

Real EstateAny classified advertising relating to the buying, selling, leasing or rental of any form of real estate property or services including residential and commercial.

Classified advertising category definitions

RecruitmentAny classified advertising relating to the recruitment industry including situations vacant, or job-seeker advertisements, contract services etc.

OtherAny classified advertising that does not fall into the categories listed above.

IABNZ Board member companies

Total market in Q1 2018An increase of 17% YoY

Total revenue reported

$244.5m

Source: IABNZ Ad-Spend Report Q1 2018

2.0 The digital media mix

Revenue by device


Q1 2018 total

$244.5m

Smartphone$17.0m

7% 1%

Tablet$2.2m

0.1%

Other$0.3m

26%

Desktop$62.9m

Device Value YoY

Desktop $63.3 -1%

Smartphone $10.4 64%

Tablet $2.2 -1%

Other $0.5 -36%

Q1 2017 YoY Comparison

3.0 Revenue by device


laptop accessed via an internet connection


device accessed via 3G, 4G or wifi

SmartphoneAdvertising that is viewed on a mobile


OtherAdvertising that is viewed on a

device such as a wearable

Revenue by device

3.1 Desktop


Total Desktop market Q1 201826% of Grand TotalA decrease of 1% YoY

$62.9M

Desktop


Sponsorship$0.5m

1%

General Display$12.0m

19%

Video$5.5m

9%

Native$2.2m

3%

Desktop Display by Channel

$62.9mQ1 2018 totalA decrease of

2% YoY

26% of grand total

Classifieds & Directories$42.7m

67%

Audio$0.1m

0.1%

2% YoY

7% YoY

17% YoY

16% YoY

57% YoY

3.2 Mobile Category (Smartphone, Tablet)


Total Mobile Category (Smartphone, Tablet)

Total Mobile Market Q1 2018An increase of 50% YoY

$19.5M


10%of Total Mobile

$0.10 $0.30$0.90

$2.10$3.90

$9.80

$13.05

$19.20

2011 2012 2013 2014 2015 2016 2017 2018

Total Mobile accounts for 8% of all digital advertising

Total Mobile Category

87%of Total Mobile

Smartphone

Tablet

Q1 totals in millions from 2014

2%of Total Mobile

Other







SmartphoneAdvertising that is viewed on a

smartphone device accessed via 3G, 4G or wifi

Other

Revenue by device


Smartphone

Smartphone Mobile market Q1 2018An increase of 65% YoY

$17.0M


Smartphone

$17.0mQ1 2018 total

An increase of 65% YoY

7% of total revenue

Sponsorship$0.4m

2%


52%

Video$1.3m 8%

Native$3.0m 18%

Audio$0.1m 1%


20%

48% YoY

177% YoY

207% YoY

Unchanged

0% YoY

34% YoY









Other

Revenue by device

3.3 Tablet

Source: IABNZ Ad-Spend Report Q1 2018Note: This figure relates to tablet specific advertising only and not interactive advertising displayed on a tablet by default. It is revenues provided by contributors who were able to report this figure separately.

Tablet market Q1 2018A decrease of 2% YoY

$2.2M

Tablet

Tablet


Sponsorship$0.06m 3%


35%

Video$0.44m

23%

Native$0.24m

13%

$1.9mQ1 2018 total

A decrease of 14% YoY

0.79% of total revenue


24% 31% YoY

12% YoYAudio*$0.04m

2%

49% YoY

2% YoY

*Audio revenue first appeared in Q4 2017 so no YoY comparison. However a 22% quarterly increase.







Other

Revenue by device

Advertising that is viewed on a device such as Smart TVs, Connected TV Devices (Freeview Plus On

demand, Apple TV, Chromecast), Gaming Consoles, and Wearables

3.4 Other devices


OtherGeneral Display$0.02m6%

$0.31mQ1 2018 total

0.13% of total revenue

Video$0.29m94%

15% YoY

85% YoY

4.0 Revenue by channel (across all devices)


General Display

Native

VideoTV-like advertisements that may appear as in-page video commercials or before, during and/or after a variety of context in a player environment including but not limited to streaming, video, animation, gaming, music video content. This definition includes broadband video commercial that appear in live, archived and downloadable streaming content.



Sponsorship

DISPLAYAudioPre roll, mid roll, post roll audio advertising, where advertisements target consumers through Podcasts, and Internet radio.


CLASSIFIEDS & DIRECTORIESRevenue from ads placed in order to buy or sell an item or service which includes recruitment, real estate, automotive, personal and other classified ads & directory listings.



4.1 Total display across all devices


Total market in Q1 2018An increase of 13% YoY

$35.7m

Display across all devices

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00

Other

Retail

Automotive

Home & Garden

Real Estate

Business Services

Finance & Banking

Manufacturing

Travel & Accomodation

Government

Entertainment

Health & Beauty

Food & Beverage

Telecoms

Computers

Agriculture

Insurance 0.68%

0.86%

3.01%

3.57%

4.06%

5.60%

4.11%

4.63%

5.77%

6.10%

6.37%

6.77%

9.20%15.42%

Display Industry Categories


Sector Revenue YoY

Other $12.71m 61%

Retail $7.58m 19%

Automotive $7.29m 6%

Home & Garden $6.36m 4%

Real Estate $5.99m 18%

Business Services $5.58m 23%

Finance & Banking $5.25m 45%

Manufacturing $5.03m 349%

Travel $4.76m 33%

Government $4.61m 4%

Entertainment $3.82m 8%

Health & Beauty $3.39m 9%

Food & Beverage $3.35m 10%

Telecoms $2.94m 26%

Computers $2.48m 28%

Agriculture $0.71m 34%

Insurance $0.56m 82%

‘Other’ top spending

industry sector for Q1 2018

‘Retail’ in Second place this quarter

7.27%

7.72%

8.84%




General Display

Native




Sponsorship

AudioPre roll, mid roll, post roll audio advertising, where advertisements target consumers through Podcasts, and Internet radio.



DISPLAY

4.2 General display across all devices


$21.5M General Display marketAn increase of 2% YoY

Q1 2018

General Display


General Display

Native




Sponsorship






DISPLAY

4.3 Total video across all devices


$7.5M Total Video market An increase of 15% YoY

Q1 2018

Video


General Display

Native




Sponsorship



CLASSIFIEDS & DIRECTORIESRevenue from ads placed in order to buy or sell an item or service which includes recruitment, real estate, automotive, personal and other classified ads & directory listings

SEARCH Ads on paid search.


DISPLAY

4.4 Sponsorship – across all devices


$1.0M Sponsorship market 3% of Total DisplayA decrease of 9% YoY

Q1 2018

Sponsorship


General Display

Native




Sponsorship



CLASSIFIEDS & DIRECTORIESRevenue from ads placed in order to buy or sell an item or service which includes recruitment, real estate, automotive, personal and other classified ads & & directory listings



DISPLAY

4.5 Native across all devices


$5.4M Native market 13% of Total DisplayAn increase of 92% YoY

Q1 2018

Native


Native Content is 15% of Total Display up 67% YoY

Q1 2018 Native Total

$5.4mNative Video

$0.12m 2.2%

Native Content$5.26m 97.2%

Native breakdown

0.7%Native Audio$0.04m

102% YoY

45% YoY


Q1 2018 Total Display

$35.7mAn increase of 13% YoY

Native$5.4m 15.2%

Sponsorship$1.0m

2.7%

General Display$21.5m 60.4%

Video$7.5m 21.1%

Video is 21% of Total Display

Display breakdown by channel

Audio$0.2m 0.7%

2% YoY

15% YoY

91% YoY

9% YoY

5.0 Programmatic advertising

Source: Standard Media Index

$15.7MAn increase of 62% YoY

Programmatic Display Net of Google Adx

Q1 2018

Programmatic Display

Note: Programmatic revenue not included in the overall total. Programmatic value is Net of Adx.

$2.1 $1.4

$3.0

$9.8

$15.7

2014 2015 2016 2017 2018


Programmatic

Q1 totals in millions

Note: Programmatic revenue not included in the overall total. Totals are Net of Adx

Programmatic Display*accounts for 6% of total interactive advertising

Q1 Total Revenue$244.5m

6%

Programmatic

Note: Programmatic revenue not included in the overall total. *Total is Net of Adx. Source: Standard Media Index & IABNZ Ad-Spend Report Q1 2018


Programmatic accounts for 44% of display advertising bookings in Q1

Programmatic Booking Type

Note: Programmatic revenue not included in the overall total


General Display

Native




Sponsorship






6.0 Social media across all devices

$11.0M Total Social Media market

Q1 2018

Social Media

*Source: Standard Media Index – Revenue reported by Agencies

*Source: Standard Media Index – Revenue reported by Agencies

$4.5

$8.1

$12.4 $11.9

$11.0

2014 2015 2016 2017 2018

Social Media* accounts for 5% of all digital advertising

Social Media



General Display

Native




Sponsorship




SEARCHAds on paid search listings.


7.0 Search across all devices

$151.1MTotal Search marketAn increase of 24% YoY

Q1 2018

Search



$6.8

$15.1 $18.8

$19.9 $25.8 $29.8

$40.9

$58.1

$107.7 $112.7

$121.4

$151.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Search accounts for 62% of all digital advertising in Q1

Search



General Display

Native




Sponsorship




SEARCHAds on paid search listings.


8.0 Classifieds & Directories across all devices


$46.7M Classifieds & Directories market An increase of 5% YoY

Q1 2018

Classifieds & Directories

9.0 Summary


5%

62% Search$151.1m

Social$11.0m

Combined summary Q1 2018 share – high level

Notes: Directories now reported with Classifieds not Search as previous years. Programmatic not included in the Total. The total of ‘Device’ table represents Total Display + Classifieds and Directories.

Total Display 14%$35.6m

19%Classifieds & Directories

$46.7m

Q1 2018 total

$244.5m

Channel $m % of Total

Display

General Display $21.5 60%

Video $7.5 21%

Native $5.4 15%

Sponsorship $1.0 3%

Audio $0.2 0.7%

Device $m % of Total

Desktop $62.9 26%

Smartphone $17.0 7%

Tablet $2.2 1%

Other $0.03 0.1%

$15.7M Programmatic market Net of Adx: - 44% of Total Display

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

850

900

TOTAL SEARCH & DIRECTORIES TOTAL CLASSIFIED TOTAL DISPLAY TOTAL SOCIAL MEDIA

$78.16 $93.06

$83.76$94.23

$135.33 $140.13

$112.09

$206.88

$59.70

Summary - online expenditure 2008 - 2017

Source: IABNZ Ad-Spend Reports 2008-2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$71.43

$64.30

$75.32

$58.12

$540.78

$180.63

$150.44

$50.82

Note: 2017 Search Total does not include Directories

Contacts

IABNZ ExecutiveCEO: Adrian PickstockEmail: [email protected] Services Manager: Chris OglesEmail: [email protected]

Project managerAndrew Steel Email: [email protected]

About Staples Rodway

Staples Rodway Wellington is part of a New Zealand-wide network of accountancy and business advisory firms providing practical, responsive, and business-focused services to a broad range of clients from start-ups to significant businesses across all industry types.

We possess top-tier skills, experience and clients but our independence means we can operate leanly and efficiently to provide excellent value. We adopt the best of modern technology to simplify the compliance process so that you can use our in-depth knowledge in local, national and international markets to get the most out of your business, at whatever stage you are at in your business life cycle.

Disclaimer

This document has been prepared using information provided by contributing media companies to Staples Rodway Wellington. The firm has relied on the information provided as being complete and accurate at the time it was given. Staples Rodway’s analysis of the data provided by contributors, walkthroughs conducted and preparation of this document do not constitute an audit performed in accordance with New Zealand Auditing Standards. Accordingly, Staples Rodway does not express an audit opinion or other form of assurance with respect to the information in this document.

Staples Rodway does not accept any responsibility for any reliance placed on this document by any person and hereby disclaims any liability for any loss or damage caused by errors or omissions, whether such errors or omissions resulted from negligence, accident or some other causes. Staples Rodway makes no representations about the analysis or application of the data.

Staples Rodway has received a fee for the preparation of this document and takes responsibility for the independence of the research and analysis contained in this document.

Please notify Staples Rodway of any errors or omissions identified in this document.

Copyright Notice

© Copyright Interactive Advertising Bureau New Zealand Inc. 2018. All rights reserved.

Any companies using tables or charts or other information from this document for any purpose must attribute the source of the information used to this document. Full permission in writing must be sought before publishing parts or the full document.

q1 2018 interactive advertising spend report - iab.org.nz...• as of q3 2015 the iabnz revenue...

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