Irish online display advertising performs strongly
Outperforms UK equivalent by almost 7%
Published 30/07/2010 | 16:10
Irish online display advertising bucked the general advertising malaise and performed strongly during 2009, as reported by the first IAB Ireland (IAB) and PricewaterhouseCoopers (PWC) online adspend study.
According to the study released earlier this week, total Irish online adspend reached just short of €100 million and accounts for just over 10% of the general advertising market that includes newspaper, tv, radio, outdoor and cinema.
The IAB / PWC study splits the online advertising ‘cake’ into three sectors; Search, (46.2%), Display (26.6%) and Classifieds (27%).
This new study recognises the significant size of the online advertising industry in Ireland where the display category outperforms the UK equivalent by almost 7%.
Both the display category and the wider online advertising sector have demonstrated great resiliance particularly during a time of extremely challenging economic conditions in 2009.
Also noted in the research was the strong future outlook whereby 75% of study participants are predicting growth or strong growth in 2010.
AOP Ireland member and Managing Director of Independent Digital, Ian Byrne, is enthused by the results, “There are many positive messages to take from this report. But above all it confirms that display advertising is an integral part of any online campaign in Ireland and proves the confidence that advertisers have in AOP Ireland member websites.”
Byrne says that growth in internet users and time spent online will have a positive impact on the continued success of AOP member websites who provide high quality, locally produced original content. “This report gives us great confidence for the years ahead”, he adds.
However this report needs to be viewed with an eye to other territories. At 10% of overall adspend, online advertising in Ireland lags significantly behind other European markets. Online advertising in the UK is valued at over £3.4billion and enjoys a 30% market share. This level of penetration is closely followed by Scandinavian markets and then Germany. Ireland currently lines up with lowly placed Italy and Spain.
Supported by the UK Association of Online Publishers (UK AOP), Lee Baker Director says, “It is encouraging that the Irish digital market is growing at a positive pace in online display. As the Irish market continues to grow, it is our experience that collaboration and commitment to quality content can only accelerate the speed of development.”
Julian Douglas, Managing Director of Entertainment.ie says, “Undoubtedly there is room for consderable growth here in Ireland. As certain demographic groups become more difficult to influence through traditional mediums, marketers will divert more of their advertising and communications investment to online, taking advantage of the audience reach and targeting ability that online provides”.
According to Suzanne McElligott, Chief Executive of IAB Ireland, “online’s strong performance provides great confidence for the future growth of our medium.”