Irish adspend approaches €100m

2009 online advertising in Ireland approaches the €100m threshold.

Online advertising sector achieves 10% of Irish Adspend 2009.

75% of study participants predict growth or strong growth for 2010.

Wednesday, 28 July 2010

Online advertising expenditure for 2009 reached €97.2 million according to the first IAB Ireland and PricewaterhouseCoopers (PwC) adspend study.

This strong performance was recorded despite a particularly challenging economic outlook and its devastating effect on the general advertising industry. The total Irish advertising market is estimated to be worth €940 million in 2009*.

Results from the online advertising study show the second half of 2009 was stronger than the first, with online advertising increasing by €1.2 million to €49.2 million between July and December. During the first half of 2009 it accounted for €48 million. This was a remarkable performance in a year which saw newspaper, television and radio advertising revenues declining sharply.

Search represents 46.2% of Irish online adspend

The search format’s share of total Irish online adspend at 46.2% mirrors the European market. IAB Europe’s 2009 online adspend study (Ad Ex) records a 46% share for search across Europe. Irish classified and display formats achieved a 27.2% and 26.6% share respectively.

Recruitment/ Property is the top performing category

At 23% the recruitment/property sectors combined are the biggest spenders on online advertising, followed by autos at 19%.

Key Drivers for online adspend in 2009

More people online – According to ComReg’s Consumer ICT Survey Q4 2009 internet usage grew from 64% in Q4 2008, reflecting 2,830,144 users online, to 72% in Q4 2009 with 3,210,696 users online.

Greater time spent online: ComReg’s study shows the average time spent online increased from 10 hours per week in 2008 to 13.2 hours per week in 2009. This reflects increased viewing time of online video, streaming TV and movies as well as the dramatic growth in social media usage.

* PwC Global Entertainment and Media Outlook 2010-2014

Increased broadband connection – Eurostat recorded an increase in Irish home broadband connections from 43% in 2008 to 54% in 2009.

Positive indicators for growth in 2010

75% of the IAB PwC study participants predicted growth or strong growth for online adspend in 2010.

Suzanne McElligott, Chief Executive of IAB Ireland, said: “2009 was a very challenging year for the Irish advertising industry. Online’s strong performance in this, our benchmark study, provides great confidence for the future growth of our medium.

"The measurability of online campaigns and the opportunity for advertisers to engage online with their target markets are powerful drivers of adspend as brands increase focus on Return on Investment in difficult economic times."

Bartley O’Connor, Advisory Consulting, PwC, said: “Online in Ireland has overtaken outdoor, magazine and cinema advertising reflecting its move to centre stage. As it continues to grow and develop as a platform for entertainment, information and communication for Irish users, so too will the advertising revenues it will attract.”