Online ad spending in New Zealand in 2007 reached $135 million, according to the Interactive Advertising Bureau of New Zealand.

This also made up 5.8 percent of total ad spending in the country.

Although small, this figure indicates a great potential for future growth, said Mark Evans, CEO of IAB New Zealand.

"We expect continued strong growth over the next few years,” Evans said, according to eMarketer.

Classified advertising owned the lion's share of the online advertising, which is about 44 percent. Display accounted for 33 percent, while search made up the remaining 24 percent, eMarketer reported.

The percentages for search and display are relatively lower, compared with other countries, but further growth is expected. According to eMarketer, one of the drivers to the growth will be the faster and cheaper broadband connections.