Interactive Bytes : Search & search ... but where's a search?

Fresh research reveals that NZ's online advertising industry is marching to a different beat, potentially creating major opportunities for savvy marketers prepared to buck local trends and embrace search engine marketing and optimisation.

A new study from IAB NZ and PricewaterhouseCoopers shows

This defies global trends where search engine marketing - through the likes of Google - heads the online pack. Optimising websites for high search engine rankings is also very big in larger online markets.

IAB figures show Search leads online advertising spend in Australia (46% share), the UK (57% share) and the US (41% share).

Yet in NZ, the IAB study shows that Search and Directories had just 25% of the country's online ad market share during the June quarter, while classified had 44% and display 31%.

Why is NZ so different? Theories abound, mostly centred on complacency in both the business and advertising sectors, combined with a lack of online sophistication.

Jon Ostler from First Rate says: "NZ has always been a bit behind the curve with online advertising generally. For example, publishers have only just introduced rotating ads rather than fixed tenancies."

But, according to Ostler, this lack of maturity means there's a "massive opportunity" for NZ businesses prepared to embrace search marketing and optimisation.

He says the cost of search engine advertising in NZ is currently half the cost of other markets. "The reality is at this stage that NZ is not a very aggressive search market apart from certain categories such as travel."

But Ostler warns that the door won't be open forever (and the IAB agrees), forecasting that Search will grow the fastest of all on advertising categories in NZ.

Ostler was one of more than 20 speakers who put NZ's fledging search industry under the spotlight at the country's first Search Engine Room conference at the Hyatt Regency in Auckland earlier this month.

It featured a diverse and dynamic programme, mixing issues with search marketing and optimisation sessions while addressing new sectors like blogging and social search.

The conference highlighted NZ innovation through local world-leading search companies such as Eurekster and SLI Systems plus emerging directory www.nzs.com

Headline speakers included leading North American search marketing expert, Aaron Shear (the former global director of SEO at www.shopping.com), Dr Grant Ryan from Eurekster and Francisco Cordero, the new regional GM for Bebo.

Industry support for the event, founded in Australia three years ago, is excellent. Search Engine Room NZ exhibitions featured Alkemi, Google, FirstRate, SLI Systems, Netconcepts and SureFire Search.

Articles, newsletters and upcoming events can be found at www.searchengineroom.com.au

Next month, AdMedia features Search Engine Marketing, expanding on the issues and opportunities for advertisers and marketers highlighted by the key speakers from this month's Search Engine Room event.

Martin Kelly is Director of Search Engine Room. He created the conference and brand in 2005, and brought it to NZ for the first time just prior to publication.

InterActive Bytes is compiled for AdMedia by www.scoop.co.nz, a leading online news site attracting a readership of over 450,000 unique visitors a month. Send feedback to Business Development Manager, Wade Bishop at wade@scoop.co.nz