Agencies suffer skills shortage as ad income tipped to rise
Published 20/07/2016 | 02:30
Advertising income in Ireland is expected to grow strongly this year, according to a new survey.
While income for creative industries in Ireland declined by 14pc last year, the report says growth of around 28pc is expected for 2016.
The survey, released by the Institute of Advertising Practitioners in Ireland (IAPI), shows that it's an overwhelmingly young industry, with 69pc of those working in creative agencies aged between 26 and 40.
The IAPI represents members engaged in the Irish marketing and communications sector. They include full service creative ad agencies, media agencies and digital specialists.
IAPI ceo Tania Banotti said "our annual census shows significant demand for qualified staff across a wide spectrum, particularly computing and digital marketing".
"Notwithstanding Brexit, ad agencies are bullish about the year ahead; 77pc of managing directors say they expect turnover to increase this year," Ms Banotti added.
Significantly, 74pc of the firms questioned expressed confidence that advertising revenues would grow this year.
The report says that the media industry in Ireland is in a constant state of flux, with one in three agencies saying they are suffering from a skills shortage.
IAPI stated that finding and retaining the top talent was one the major concerns for the industry. The survey also stated that Brexit was also a concern for the sector.
The figures show that agency new hires accounted for 25pc of the workforce in 2015.
An indication of the mobility enjoyed by those working in the sector was evident in the statistic that 357 people left their jobs to join another firm in the same industry. Just 3pc of staff in IAPI agencies were let go.
The gender balance in the industry stands at exactly a 50:50 ratio. The survey found that 69pc of firms offer maternity leave, while there was an increase in the number of companies offering paid paternity leave (57pc).
In total, 435 people were hired last year, 257 chose to leave their jobs, while 48 were let go. There were 220 part-time staff employed.
Media income hit €77.3m, while revenues from creative agencies were €21m in 2015.
Billings for media companies were up 10pc to €639.5m, while gross income for creative firms stood at €116.4m.
The average revenue for media agencies was at €37.5m and €2.5m for creative agencies.