SMI - Ad spend picks up in New Zealand

Chris Pash
By Chris Pash | 4 November 2020

Ad spend, as reported by media agencies, is picking up in New Zealand.

SMI (Standard Media Index) data shows the value of advertising booked for November so far equals 72% of the same month last year.

This brings spend back to levels normally see at this time of year.

Australia is seeing a similar pattern with a lift in ad spend for October continuing into November. 

Jane Ractliffe, SMI AU/NZ managing director, says key product categories in New Zeland are delivering higher media investment in November, including the Food/Produce/Dairy category leading the market with growth of 7.7%.

Non Alcoholic Beverage ad spend is already 5.5% higher in November than the same month a year ago and insurance advertising has lifted 0.5%. 

In December, the SMI numbers show just over half the value of last December’s total ad spend already booked, which is a higher level of forward bookings than would normally be expected.

The New Zealand’s media industry reported a larger decline in ad spend in September due to the prior year featuring abnormally high Rugby World Cup ad revenues.

Total national marketer ad spend fell 22.3% in September from last year’s record RWC-inspired levels with the Digital (-2.5%) and Radio (-8.4%) media reporting by far the lowest falls.

The abnormal prior year spend interrupted four consecutive months of lower post-COVID improvements in ad spend, but the trend restarted in October with the early SMI data showing ad demand in that month back only 11%.

But given the timing-affected September 2020 revenues the decline in September quarter ad demand in NZ has hit 20.1% and so far for the nine months of this year the market is back 18.9%.

smi nz

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