New figures released this week in the 2010 IAB PwC Online Adspend Study have valued the online advertising market in Ireland at €110m up from €97m in 2009.
This represents a 13.5pc increase in adspend year on year and surpasses industry predictions for the 2010 online market. Industry sources had predicted that online adspend in 2010 would reach €102m.
The growth in the second half of 2010 at 15pc was higher that the 12.3pc growth recorded in the first half of the year over the same period in 2009.
All online advertising formats saw increases in adspend, as growing numbers of advertisers embrace the online channel.
Advertising on social media sites and ad networks contributed to the growth of display spend, which has grown from 26.6pc in 2009 to 31pc in 2010.
Online classified advertising and paid-search advertising again showed strong performances representing 25pc and 44pc respectively of total adspend.
The study also identifies the key spenders in the display and classified formats.
Auto is the top performing category for 2010 at 21pc. In second place is the recruitment/property sectors combined at 17pc. This is a reversal of the top categories in the 2009 study when recruitment/property was in the number one slot and auto took second position.
The next three top performing categories were Fast Moving Consumer Goods (FMCG), Telecommunications and Finance.
The study also outlined a number of Key drivers for online adspend, namely, increased broadband connections and greater time spent online.
The total number of Broadband connections (fixed and mobile) grew from 1,861,242 in 2009 to 2,163,642 in 2010, representing a 16.3pc year on year increase. (ComReg’s Trend Unit, Comstat.ie)
The average hours spent online each week increased from 13.2 (ComReg) in 2009 to 19.1 hours per week in 2010 (Red C). This reflects increased viewing time of online video, streaming TV and movies as well as the dramatic growth in social media usage.
Media buying agency, Carat predict Irish online adspend will grow by 11pc in 2011.
78pc of the participants in the IAB PwC online adspend study anticipated “growth” or “strong growth” in the next 6 months.
Commenting on the study results Suzanne McElligott, Chief Executive of IAB Ireland, said: “Online Advertising‘s increased sophistication in meeting advertisers’ needs as well as its measurable benefits have driven the growth of adspend and attract new advertisers to our channel on a daily basis.”
“Bartley O’Connor, Advisory Consulting, PwC, said: “ The growth in the Irish online audience and in their time spent consuming online media while other media are experiencing fragmenting audiences underlines the phenomenon of online’s growing share of media budgets”.