Why online ad spend is low in New Zealand #1

So Australia has a per population online media spend of 3 times New Zealand. That’s a huge difference for 2 economies where the GDP/Capita differs by only 30%.

Let’s look at some likely reasons for that difference:

1: Internet penetration

Actually New Zealand is doing just fine – with 76% of the population online versus 70.7% for Australia.

2: Broadband penetration

In June 2006 Australia had 17.4 broadband subscribers per 100 people, while NZ was a bit further back at 11.7. That’s a 49% difference.

It was worse in 2005, when Australia had 70% greater broadband penetration than New Zealand.

NZ was doing about as well/badly as Australia until 2003/4, when Australian broadband penetration accelerated more sharply. It is all to easy to blame Telecom NZ for the difference, and so I will do so.

Broadband penetration NZ australia

Source OCED

..more to come

Published by Lance Wiggs