Sunday 23 July 2017

Online adspend surges ahead to €65m in the first half of 2011

Pictured launching the latest IAB/PwC online adspend for Jan to June 2011 showing over 20% growth are Bartley O'Connor, PwC and Suzanne McElligott, CEO, IAB Ireland
Pictured launching the latest IAB/PwC online adspend for Jan to June 2011 showing over 20% growth are Bartley O'Connor, PwC and Suzanne McElligott, CEO, IAB Ireland

Irish online advertising has bucked the recession recording its highest level of growth at 20.5% in the first half of 2011 according to the bi-annual advertising spend study from IAB Ireland and PwC.



Spend on other media in H1 2011 has been valued by Nielsen at €443.4m down 1.5% year on year. Online adspend brings the value of total media adspend to €508.3m for the period and records online’s market share at 13%. Online now ranks number 3 in total media spend, outperforming radio, outdoor, cinema and magazines.

Online display sees very strong growth with video and social media enjoying increased spend.

The Display format recorded the highest level of growth to €20.7m in H1 2011, signifying a 41% growth year on year. Display now represents 34% of total online adspend.

Strong growth in display has been witnessed in IAB adspend studies in the UK and across Europe as brands embrace online advertising in growing numbers. Increased spend on online video by advertisers as well as growth in display spend across social media sites are among the important contributors to the growth of this format in the Irish market.

Paid-search advertising continues to perform strongly with growth of 17% year on year to €27.2m, representing 45% of total online adspend.

Accounting for 21% of the market, classified advertising continues to make up an important part of online adspend at €12.7m



Telco, FMCG and Entertainment and Media are the top spenders in Display



The H1 2011 Adspend Study provides a breakdown of category spend for the display format. Telecommunications, FMCG and Entertainment/Media categories tie for poll position at 12% respectively. The strong performance of these three categories reflects that brands are embracing the digital channel and growing their online budgets.



Property/Recruitment and Auto are the top categories in classified advertising.



The top spending category for classified advertising in the first half of 2011 was Property/Recruitment at 36% followed by Auto in second place at 28%.



Mobile Adspend Estimate



For the first time an estimate of display adspend on mobile has been provided in the adspend study. Mobile advertising is still a relatively new platform in the digital media mix. The dramatic increase in smartphone penetration and usage has contributed to increased interest in mobile advertising. Display adspend on mobile is estimated at €1.6m in H1 2011.



Key Drivers for growth





Fixed and mobile broadband growth – Fixed Broadband increased by 8% between Q2 2010 and Q2 2011. Mobile broadband grew by 14.8% between Q2 2010 and Q2 2011 (ComReg’s Quarterly Key Data Report, Q2, 2011)



Greater time spent online: Time spent online at 2 hrs 44 minutes now mirrors time spent watching TV at 2 hours 49 minutes (Red C: De-Coding Digital Trends Ireland 2011) The average Irish Internet user spends 8 hours per week on social media, the heaviest users of social media are 18-24 year at 11 hours per week (Behaviour & Attitudes: Bacardi Together Poll, July 2011)





Positive indicators for further growth





77% of the participants in the IAB PwC online adspend study anticipate “growth” or “strong growth” in the next 6 months.



A 55% increase in Smartphone ownership is anticipated in 2012 in the Irish market with smartphones potentially overtaking desktops (Red C: De-Coding Digital Trends Ireland 2011)





Commenting on the study results Suzanne McElligott, Chief Executive of IAB Ireland, said: “The record 20% growth tracked in our H1 2011 report highlights that digital advertising has moved centre stage in the media mix. With the continued growth in online usage and increased time being spent online digital advertising is now a significant driver for brand growth for advertisers”.





“Bartley O’Connor, Advisory Consulting, PwC, said: “'The strong growth in online advertising highlighted by the most recent IAB\PwC study demonstrates the level of activity and vibrancy of the online industry in Ireland at a time when many other industries are experiencing difficulties. We are now at a tipping point where all businesses need to consider their digital strategy and how they will capture the opportunities associated with the migration to digital platforms. "

Promoted articles

Also in Business