Rabbitte plans ad spend review
THE Government plans to change the broadcasting laws because of the changing nature of advertising spending and the increasing role of foreign news companies in the Irish market, Communications Minister Pat Rabbitte has said.
The Department of Communications is tendering for a comprehensive review of the advertising industry to help inform these changes.
"Advertising underpins the development of Irish business and acts as a catalyst for innovation. It also plays a critical role in the media sector. But it's a world that is changing... policy will have to reflect this," the minister said.
He was speaking at the launch yesterday of a separate study of the sector, undertaken by accounting firm Deloitte, which showed that advertising does far more than plug products – it is responsible for everything from spurring price wars to funding public works.
This means that every €1 spent on advertising provides a stimulus to the economy worth €5.7, according to Deloitte.
The €938m spent on advertising last year, the study found, resulted in a total economic gain of €5.3bn.
Alan Cox, president of media buying agency Core Media, said the Government must recognise this value and incentivise advertising spending.
His organisation is calling on Government to introduce a two-year tax break for ad spending.