Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - New Zealand

New Zealand

Ad spending in the Traditional TV Advertising market in New Zealand is forecasted to reach US$337.80m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -0.58%, leading to a projected market volume of US$328.10m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in New Zealand is estimated to be US$93.09 in 2024.
It is expected that the number of users in the Traditional TV Advertising market in New Zealand will reach 3.76m users by 2029.
Traditional TV Advertising in New Zealand is experiencing a resurgence as companies leverage its wide reach and storytelling capabilities to engage with diverse audiences effectively.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in New Zealand has been experiencing significant growth in recent years.

Customer preferences: New Zealanders have shown a strong preference for traditional TV advertising, despite the rise of digital advertising platforms. This can be attributed to the fact that television remains a popular and widely accessible medium in the country. With a high penetration rate of television ownership and a culture of watching TV programming, advertisers have recognized the value of reaching a large and engaged audience through traditional TV advertising.

Trends in the market: One of the key trends in the Traditional TV Advertising market in New Zealand is the increasing competition for ad space. As more advertisers recognize the effectiveness of television advertising, there has been a surge in demand for prime ad slots. This has led to higher advertising rates and more strategic planning in terms of ad placement. Another trend in the market is the shift towards targeted advertising. Advertisers are now leveraging data and analytics to better understand their target audience and deliver more personalized and relevant ads. This trend is driven by the increasing availability of consumer data and the desire to maximize the impact of advertising campaigns.

Local special circumstances: One of the unique aspects of the New Zealand market is the dominance of free-to-air television channels. Unlike some other countries where cable and satellite TV have a significant market share, New Zealanders primarily rely on free-to-air channels for their TV viewing. This means that advertisers have a concentrated platform to reach a large portion of the population.

Underlying macroeconomic factors: The strong growth in the Traditional TV Advertising market in New Zealand can also be attributed to the country's stable economy and high consumer spending. With a strong GDP growth rate and low unemployment, New Zealanders have more disposable income to spend on goods and services. This creates a favorable environment for advertisers to invest in TV advertising and reach a receptive audience. In conclusion, the Traditional TV Advertising market in New Zealand is experiencing growth due to customer preferences for television as a medium, increasing competition for ad space, the shift towards targeted advertising, the dominance of free-to-air channels, and the underlying macroeconomic factors of a stable economy and high consumer spending.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. 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, population, media consumption, number of households with television, and 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.