Video advertising in NZ – A Clear Opportunity

According to Nielson Multi Screen Viewing report from March this year  “Half of all New Zealanders (1.9 million) watch online video content each week, and they view an average of 7.3 hours per week”.

While there has been a steady increase in video advertising year on year the total amount spent in online video for Q2 2015 was only $6.15m out of a total quarterly interactive online spend of $184m. At just 3.3%there is plenty of room for more growth with the iabUK is predicting video will reach 12.4% by 2017 and we follow the UK trend line.
NZ Video Advertising Growth

The New Zealand market is relatively open and competition is light so those using video advertising online can make the most of the exposure at very low costs compared to TV and traditional media. We are seeing price per views as low as 5cents.  It is good to remember a view on YouTube is based on 30sec of viewing so this means each view has good engagement compared to static display ads.

The rise of video content marketing has also lead to a growth in business servicing this industry and pricing dramatically reducing to produce good quality content. This makes it much more affordable than most businesses think.

Why should you care?

Adding video to your digital marketing strategy could have a significant impact to your overall results.

  • Increase brand awareness.
  •  Promote a compelling event or offer coming up such as a sale or launch of a new product.
  •  Get higher engagement rates in a compelling medium with potential customers.
  • Advertise where your competitors may not yet be.

While price per view is already starting to increase it is still a very economical medium that is ripe for the picking for businesses with the vision to utilise it.


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About the Author Glenn Marvin

Glenn is a Partner and Senior Consultant who has had a very successful career building growth companies in the private equity arena. He has a wealth of experience in both the digital space and strategy development. Prior to becoming a partner in SureFire Glenn built one of the largest digital teams in New Zealand for a NASDAQ listed global online marketing company & Google's largest premium partner.

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