Television revenue rose about 2 percent in 2011, demonstrating advertisers’ confidence in the medium, according to free-to-air television lobby group ThinkTV.
Television ad revenue increased $11.4 million to $618 million in 2011. The gain came from banks, retailers and car manufacturers, the company said in a statement.
“The continued growth shows the unparalleled position of Free-to-Air Television in the advertising market,” said Rick Friesen, chief executive ThinkTV. “International research shows that television is still the best and most cost effective medium for maximising an advertiser’s reach.”
Last year’s gain follows a 6.6 percent annual increase as advertisers bounced back from a gloomy 2009 when the global financial crisis forced companies to clamp down on spending and cut back on marketing expenses.
Television New Zealand, the state-owned broadcaster, increased its ad revenue 6.4 percent to $377.9 million in the year ended June 30, while rival MediaWorks, which includes TV3 and commercial radio stations such as the Edge and the Rock, reported ad revenue of $170.4 million in the year ended August 2010, according to its latest financial statements. In 2009, its ad revenue was some $253.2 million.
MediaWorks went through capital restructure in 2010 when its lenders wrote off some debt in return for equity in the broadcaster.
In November, TVNZ said it won’t turn its back on free-to-air digital platform Freeview after signing a deal with the nation’s dominant pay-TV company Sky Network Television, in November. The pair plan to set up a rival set-top box offering user-pays and free-to-air content over Sky’s DTT spectrum and may be open to using ultra-fast broadband in the future.