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SMI Unveils New NZ Product Category Breakthrough

August 26th 2018

Accurate Media Mix Modelling Now Enabled for 96 Categories

Global ad spend data provider Standard Media Index has delivered to the NZ media data the first visibility on ad spend for 96 Product Categories across all major media, enabling accurate media mix modelling and advertiser category benchmarking for the first time.

SMI AU/NZ Managing Director Jane Ractliffe said the service, which is unique to the NZ and Australian markets, highlights the large differences in media weightings and demand across all Product Categories with even similar categories revealing markedly different media plans.

For example, even the ad spend trends of the Airlines and Travel Agents/Websites categories are very different: Airlines grew total media investment 5.4% in June 2018 while Travel Agents/Website reduced media spend 7.1%. Airlines grew their TV spend in June by 14.8% while at the same time Travel Agents reduced TV bookings by almost 20%. And while Airlines spent 10.2% of their media budgets on Outdoor, Travel Agents spent only 1.4% of all spend on Outdoor.

Z Product Category Differences

 

“There is simply no uniformity in how Categories allocate their media budgets across media nor in terms of their decisions on whether to grow or reduce ad spend. It clearly highlights the difficulties all media companies face when trying to navigate the advertiser market,’” Ractliffe said.

She said the data provides valuable market transparency to media sales teams who have previously been blind to the trends within the key categories they are seeking to engage, and gives advertisers the ability to accurately benchmark their media spend against that of their competitor market.

To highlight the market complexity facing media sales teams and advertisers, SMI picked ten of the SMI NZ Product Categories at random and showed the media weights and percentage changes in spend for the June 2018 period (see over page). Categories include Supermarkets/Liquor Stores, Mobile Networks, Skin Care and Beer/Ale/Cider.

As previously reported, media Agency advertising demand in NZ fell 13.9% in June 2018 from June 2017 (in part due to the British/Irish Lion’s tour growing 2017 ad spend) but that top-line figure disguised great variation in ad spend trends among key product categories.

For example, in the same period ad spend from the Supermarkets/Liquor Stores category grew 36.3% and the Over-the-Counter Medicines market lifted ad spend 19.9%. In contrast, ad spend from Mobile Networks crashed 40.7%; the Credit/Card category reduced ad spend 53.9% and spending from the Confectionary/Snacks/Dessert Items category fell 2%.

And in terms of changes to media shares, the Beer market reduced its media allocation to TV to 20.9%  while massively increasing Outdoor’s share of its budget to 41.4%. And in the. Mobile Networks category its spending onto Cinema received a huge boost to grow to 4.6% of its spend, while the Digital media emerged with the second highest share at 32.4% despite a large fall in Category spend.

“Within any month there are huge variations in Category spend trends and the data shown here is just for June and obviously changes every month. But media clients can now use the latest category detail to better position themselves to take revenue from other competitors or other media. Knowledge is power,” she said.

Ractliffe said the new insights follows the release of data for the same Categories for all Digital sectors, such as Search, Social Media, Programmatic and Video Sites.

“SMI is all about creating more market transparency and filling the ad spend data gaps regularly complained about by major media and advertisers and this development is a perfect example of that,” she said.

“This data provides the clarify the market needs to work more efficiently by better understanding the immense differences in media spending across all Product Categories, both in terms of media weighting and year-on-year percentage increases/decreases in ad spend by media.”

 

For further information contact:

Jane Ractliffe (nee Schulze)

SMI AU/NZ Managing Director

+61 401 704 348

 

About Standard Media Index

Standard Media Index (SMI) was established in 2009 in Sydney and has offices in New York, London and Madrid.  SMI partners with leading global media buying agencies to provide independent, accurate and timely advertising expenditure data to its clients to facilitate informed analysis of the media sector and product category expenditure. Data is sourced directly from advertising agencies’ billing systems and then aggregated to show the combined picture of media Agency ad spend across all major media, media sectors, 36 NZ product categories and 96 sub categories.  It allows subscribers to monitor and analyse key data points that can be actioned to grow share and make better investment decisions. SMI provides the only clear picture on how ad dollars are being spent. In NZ its data covers more than 98% of all Agency spend and SMI works with media Agencies in more than 15 global markets.  au.standardmediaindex.com/

SMI Team

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