Market Insights Advertising & Media AR & VR

VR Advertising - New Zealand

New Zealand

The VR Advertising market in New Zealand is expected to experience a significant growth in revenue, reaching a projected value of US$0.6m by 2024.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2029) of 1.34%, resulting in a projected market volume of US$0.6m by 2029.
It is worth noting that in the United States dominates the market, generating the highest revenue with a projected market volume of US$47.4m in 2024.
Despite being a small market, New Zealand is seeing a growing interest in VR advertising as businesses explore innovative ways to engage with consumers.

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Analyst Opinion

The VR Advertising market in New Zealand is experiencing significant growth and development.

Customer preferences: Customers in New Zealand are increasingly embracing virtual reality (VR) technology for various purposes, including entertainment, gaming, and education. This growing interest in VR has created a favorable environment for the development of VR advertising. Consumers are becoming more receptive to immersive and interactive advertising experiences, making VR an attractive platform for advertisers to engage with their target audience.

Trends in the market: One of the key trends in the VR Advertising market in New Zealand is the integration of VR technology into traditional advertising channels. Advertisers are leveraging VR to create unique and memorable experiences for consumers, whether it's through VR-enabled billboards, interactive VR ad campaigns, or branded VR content. This trend is driven by the desire to capture consumers' attention in a cluttered advertising landscape and provide them with a more engaging and immersive brand experience. Another trend in the market is the increasing adoption of VR headsets and devices. As the cost of VR hardware continues to decrease and the technology becomes more accessible, more consumers in New Zealand are investing in VR headsets and devices. This increased adoption of VR technology creates new opportunities for advertisers to reach their target audience through VR advertising campaigns.

Local special circumstances: New Zealand's tourism industry plays a significant role in driving the growth of the VR Advertising market. The country is known for its stunning landscapes and adventure tourism activities, making it an ideal destination for VR experiences. Advertisers in New Zealand are leveraging VR technology to showcase the country's natural beauty and attract tourists. VR advertising campaigns that offer virtual tours of New Zealand's popular tourist destinations or immersive experiences of adventure activities are gaining popularity among both domestic and international travelers.

Underlying macroeconomic factors: The growing VR Advertising market in New Zealand is also influenced by several underlying macroeconomic factors. The country's stable economy, high internet penetration rate, and tech-savvy population contribute to the adoption and acceptance of VR technology. Additionally, the increasing investment in VR infrastructure and content development by both local and international companies further fuels the growth of the VR Advertising market in New Zealand. In conclusion, the VR Advertising market in New Zealand is experiencing significant growth and development due to customer preferences for immersive and interactive advertising experiences, the integration of VR technology into traditional advertising channels, the increasing adoption of VR headsets and devices, the influence of the tourism industry, and underlying macroeconomic factors. As VR technology continues to advance and become more accessible, the VR Advertising market in New Zealand is expected to further expand and offer new opportunities for advertisers to engage with their target audience.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports 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 consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).