Irish online advertising surges ahead
Irish marketers invested €53.9m in online advertising in the first half of 2010 according to the IAB Ireland and PwC adspend study.
The same study last year recorded online advertising expenditure for the first half of the year at €48m.
Online, once again, outperforms all other media with a double-digit growth of over 12pc for the half year ended 30 June 2010 compared to the half year ended 30 June 2009.
Display and Search drive growth
All online advertising formats saw increases in adspend, with growing numbers of advertisers embracing the online channel.
Advertising on social media sites contributed to the growth of display spend from a share of 26pc in H1 2009 to 29pc in 2010.
Paid-search advertising continues to perform strongly in challenging economic times where there is a strong focus on return on investment, search accounted for 45pc of online adspend in H1 2010.
Online classified advertising again showed a strong performance with a 26pc of total adspend.
Auto is the top performing category
The IAB PwC study also identifies the key spenders in the display and classified formats.
Auto is the top performing category at 22pc for the first half of 2010.
In second place was the recruitment/property sectors combined at 19pc. This is a reversal of the top categories in the H1 2009 when recruitment/property was in the number one slot and auto took second position.
The fast moving consumer good’s category (FMCG) continues to be a strong performer in online spend with FMCG brands representing 10pc of the combined display and classified spend.
Key Drivers for online adspend in H1 2010
According to ComReg’s consumer ICT survey internet usage grew from 66pc in Q2 2009, reflecting 2,943,138 users online, to 77pc in Q2 2010 with 3,442,439 users online.
Comreg’s Irish communication market report recorded an increase in Irish household broadband connections from 63pc in Q2 2009 to 68pc in 2010
The average hours spent online each month per visitor increased from 15.6 in H1 2009 to 19.4 hours per month in H1 2010, according to Comscore.
This reflects increased viewing time of online video, streaming TV and movies as well as the dramatic growth in social media usage.
Positive indicators for further growth
A global growth of 12pc was predicted for online adspend in 2010 by eMarketer
Billets Ireland predicted a 9pc growth in 2010 for Irish online adspend.
68pc of the participants in the IAB PwC adspend study anticipated “growth” or “strong growth” in the next 6 months.
Suzanne McElligott, Chief Executive of IAB Ireland, said: “The double digit growth in Irish online adspend is a recognition by advertisers of the impressive return on investment delivered by online advertising formats.
"Our market is now really embracing the digital opportunity. The H1 2010 growth rate of 12.3pc ranks Ireland as the fourth highest performer among IAB markets audited in this period.”
“Bartley O’Connor, Advisory Consulting, PwC, said: The results of the study confirm the increasing popularity of the online channel as an advertising medium. In this difficult economic environment, online advertising continues to deliver strong growth.”