Digital Video Advertising - New Zealand

Ad spending in the Digital Video Advertising market in New Zealand is forecasted to reach US$217.60m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 5.48%, leading to a projected market volume of US$299.80m by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue will be generated the United States.
In the Digital Video Advertising market of New Zealand, 84% of total ad spending is expected to be generated through mobile by 2030.
The average ad spending per internet user in the Digital Video Advertising market of New Zealand is projected to be US$42.33 in 2024.
Connected TV ad spending in the Digital Video Advertising market of New Zealand is projected to reach US$28.36m in 2024.
Connected TV is expected to show an annual growth rate (CAGR 2024-2030) of 4.50%, resulting in a projected market volume of US$36.93m by 2030.
The ad spending on short-form videos in the Digital Video Advertising market of New Zealand is forecasted to reach US$93.97m in 2024.
The ad spending on short-form videos is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 9.40%, leading to a projected market volume of US$161.10m by 2030.
New Zealand's digital video advertising market is experiencing a surge in programmatic ad buying, revolutionizing how brands engage with their audiences online.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

The Digital Video Advertising market in New Zealand has been experiencing significant growth in recent years.

Customer preferences: New Zealand consumers are increasingly turning to digital platforms for their entertainment and information needs. This shift in consumer behavior has led to a growing demand for digital video content, creating opportunities for digital video advertising. Additionally, consumers in New Zealand are known for their high levels of internet penetration and smartphone usage, making them a prime target for digital video advertising campaigns.

Trends in the market: One of the key trends in the digital video advertising market in New Zealand is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to reach their target audience more effectively and efficiently. This trend is driven by the increasing availability of data and advanced targeting capabilities, which allow advertisers to deliver personalized messages to consumers. Another trend in the market is the growing popularity of mobile video advertising. With the proliferation of smartphones and the increasing availability of high-speed internet, more and more consumers are accessing video content on their mobile devices. Advertisers are recognizing the potential of mobile video advertising to reach consumers on the go and are investing in this medium to engage with their target audience.

Local special circumstances: One of the unique characteristics of the New Zealand market is its relatively small population. This presents both challenges and opportunities for digital video advertisers. On one hand, the smaller population means that advertisers have a smaller pool of potential viewers to target. However, it also means that advertisers can reach a higher percentage of the population with their campaigns, potentially leading to higher levels of engagement and brand awareness.

Underlying macroeconomic factors: The strong economic growth in New Zealand has contributed to the development of the digital video advertising market. As the economy continues to grow, businesses are investing more in advertising to capitalize on the increasing consumer spending. This has led to an increase in advertising budgets, including spending on digital video advertising. In conclusion, the Digital Video Advertising market in New Zealand is experiencing growth due to customer preferences for digital platforms, trends such as programmatic advertising and mobile video advertising, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, advertisers will need to stay abreast of these trends and adapt their strategies to effectively reach and engage with the New Zealand audience.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.