The Advertising expenditure (AdEx) market in New Zealand is a $2.5bn industry, forecast to stay relatively stable in the next five years. We see AdEx grow at a 1.9% CAGR from CY16, to reach $2.7bn by CY21.
This growth is underpinned by digital advertising revenues which have been historically lagging behind peer markets but have now caught up.
Digital represented a 33% share of the total market in CY15, and will skyrocket to 53% of the market by CY21.
Print is declining fast. The merger between NZME and Fairfax New Zealand will create one dominant player in the market and push toward even more digitisation of the segment.
Although Terrestrial TV is still very popular in New Zealand, the segment as a whole will become less attractive as other advertising platforms rise. Television (Free-to-Air and Pay-TV) will decrease at a CAGR of 1.8% from CY16 to CY21.
Radio listening will stay relatively flat. The overall share of the segment will only see a minor decrease, from an 11% share of the overall ad spend market to a 10% share by 2021.
Though they are small segments in the market, Outdoor and Cinema show signs of growth.