IAB's connect 2014: Digital adspend up 40pc in first half of year, mobile growing
Online advertising spend reached €130m in the first six months of the year as internet usage and access to mobile devices surged.
Spending on online ads jumped by a record 40pc, a new study on the Irish digital advertising market found.
Mobile adspend accounts for 29pc of total online spending and experienced 132pc growth to €37m in the first half of the year, while display advertising on websites grew by 34pc to €45m.
The study was revealed at IAB Ireland's third annual mobile conference, being held at the Guinness Storehouse this morning with the theme Ready, Steady, Mo!
Suzanne McElligott, chief executive of IAB Ireland, said 2014 marks a paradigm shift in advertising in the Irish market with a record 40pc growth in digital adspend.
“This dramatic growth mirrors the growing appetite of the Irish consumer for digital devices, digital media and in particular digital video across all screens - big and small,” she said.
“Almost €1 in every €3 of digital adspend is now on mobile advertising and with the anticipated further growth in mobile usage and content mobile advertising must now be the first screen Irish advertisers engage to communicate with their consumers.”
A staggering 85pc of Irish adults have access to digital devices that can be used “on the go”, while smartphone penetration is at 64pc. Tablet ownership has almost doubled in the last 12 months to some 40pc.
IAB Ireland is the trade association for the country's online marketing industry and its conference is addressing issues like whether Irish brands are mobile-ready, understanding the latest media usage in Ireland as well as mobile creativity.
Speakers include Jide Sobo, head of mobile at MEC UK, Richard Colwell, chief executive at Red C Research and Sam Woods, sales director at Shazam and Fiona O'Carroll, managing director Digital at Independent News & Media.
More than 30 leading publishers, many which represent multiple websites, took part in the PwC study which covers January to June.
It found the strong performance of digital adspend contrasts with spending on other media which grew by less than 1pc during the same period.
Spend on video on display (VOD) advertising grew by 75pc to €7m and social media display also saw particularly high growth to €10.7m from €6.4m in the first six months of 2013.
Paid-for-Search advertising has grown by 58pc and remains the dominant digital format with a 54pc share of total online adspend at €71m
Elsewhere classified advertising online continued to perform strongly in 2014, holding a 11pc share.
Finance is the top spending category on desktop displays, at 15pc, followed by retail and fast moving consumer goods (FMCG) at 13pc,and telecommunications at 10pc.
However FMCG, entertainment and media topped the adspend on mobile ads, followed by finance and retail.