Newspaper ads lead in NZ but growth is in mags

Innovation and a number of new titles had pushed magazines into third spot ahead of radio in the advertising pecking order, one of the nation's leading media buyers said after the release of the latest industry revenue figures.

The Advertising Standards Authority said yesterday that newspapers continued to lead the way in 2005 with $830 million followed by television on $666 million.

Spending on magazine advertising rose nearly 17 per cent to $260 million, ahead of radio on $256 million.

Martin Gillman, chief executive of media planning and buying company Total Media, said innovation and the launch of new publications lay behind the growth in the magazine area.

"What we've seen up to really the beginning of last year was a market that had been relatively stable where most of the changes had been quite cosmetic," Gillman said.

"So far we haven't seen any evidence that changes in page size and paper stock really make that much difference. It's actually genuinely new innovative editorial."

Total advertising turnover grew 7.4 per cent to $2.23 billion in 2005.

Although some increases were in part because of better reporting there was genuine growth in the industry, which Gillman did not expect to be reversed by the slowing economy.

"A tightening economy doesn't mean it's actually going to go into recession at all," he said. "We foresee continued growth in just about all sectors of the media."

Mark Champion, acting chairman of the Advertising Standards Authority, described last year's advertising spending growth as significant.

"Significant in that it is building off a really strong base but also significant in the fact that it was an indicator of the strength of the market last year when some in the market were saying that it was weakening," Champion said.

When it came to predictions, however, Champion was more cautious.

"There are no predictive bellwethers in New Zealand on marketing spend so anything else would be just idle speculation."

Although it had been displaced into third place, the local radio market remained one of the strongest in the world, Champion said.

"Normally radio wouldn't be quite as high as you see in New Zealand."

Deregulation had led to a proliferation of radio stations, he said.

"I think New Zealand has always had a bit of a love affair with radio and it's a way of regionalising."

The growth in internet advertising didn't come as a surprise to Champion, who is also the chief executive of the Communication Agencies Association. "That's exactly what our members are telling us about the growth of online and it's exactly what the international experience is telling us as well," he said.

Outdoor advertising increases followed an international trend.