14 Mar 2013

Google makes aggressive push for NZ advertising dollars

7:12 am on 14 March 2013

Google is making an aggressive push for more advertising dollars in New Zealand, armed with research showing a high number of New Zealanders watch TV at the same time as looking at their smartphone or computer.

The study shows 85% of New Zealanders regularly dual-screen, with about one in five going online to research something they see on TV.

Half of the people researching actually buy on online.

Google New Zealand manager Tony Keusgen is using the research to persuade advertisers to spend more online.

About $60 million or 15% of total advertising budgets are spent online in New Zealand, compared with 50% in the UK.

Mr Keusgen says New Zealand's media viewing habits are changing rapidly but advertisers are well behind.

"Forty three percent of media in New Zealand is consumed via the internet so the general rule with marketing is that you would sway your investment to where consumers' focus is, yet in New Zealand only 15% of investment in marketing actually goes into the digital space."

Mr Keusgen says marketers need to be where consumers are.

He says over time Google wants to partner with advertising agencies and marketers to ensure they get the best out of the internet.

In a significant move, Google has signed a deal with the digital ad agency VivaKi to sell 104 masthead ads on Google-owned YouTube over the next 12 months.

Mr Keusgen says it is one of the biggest deals of its kind for Google worldwide.

VivaKi New Zealand chair Kevin Malloy says it is an unusually aggressive move for the New Zealand market but it is just the start.

He says what Google is doing is only the tip of the iceberg in terms of where clients think value is going to come from and where they spend money.