Ir­ish dig­i­tal ad­ver­tis­ing mar­ket nears half a bil­lion euro

The Irish Times - Business - - BUSINESS NEWS - LAURA SLAT­TERY

Dig­i­tal ad­ver­tis­ing rev­enues in the Ir­ish mar­ket rose 10 per cent to €491 mil­lion last year, ac­cord­ing to fig­ures from in­dus­try body IAB Ire­land and ac­coun­tancy gi­ant PwC.

While this rate of growth in the on­line ad mar­ket was slower than in pre­vi­ous years, the per­for­mance still sets the for­tunes of dig­i­tal media on a dis­tinctly sep­a­rate track to those of tra­di­tional media, which saw their ad rev­enues fall last year.

The IAB Ire­land/PwC on­line ad­spend study for 2017 found that €264 mil­lion was spent on mo­bile ad­ver­tis­ing, up 14 per cent, while desk­top ad­ver­tis­ing spend was es­ti­mated at €227 mil­lion, up 6 per cent.

Mo­bile ad­spend first over­took desk­top in 2016 and it con­tin­ues to out­strip it, now ac­count­ing for 54 per cent of dig­i­tal ad­ver­tis­ing. Heavy us­age of phones is driv­ing the trend, with IAB re­search sug­gest­ing 59 per cent of con­sumers in Ire­land use their mo­bile de­vice at least once ev­ery 30 min­utes.

The on­line ad mar­ket is now more than five times the size it was in 2009, hav­ing ac­cel­er­ated sharply in re­cent years, when most of the gains can be at­trib­uted to surg­ing rev­enues for Face­book and Google.

Ma­tur­ing medium

IAB Ire­land chief ex­ec­u­tive Suzanne McEl­lig­ott said the 2017 growth was “a very pos­i­tive per­for­mance in a chal­leng­ing year for the Ir­ish and global ad­ver­tis­ing mar­ket”, while new chair­man Shane Nolan said the fig­ures re­flected “a strong and ma­ture ad­ver­tis­ing medium”.

Paid-for search ad­ver­tis­ing, which is dom­i­nated by Google, grew 12 per cent in 2017 and re­mains the dom­i­nant for­mat with es­ti­mated spend of €245 mil­lion, or half the dig­i­tal mar­ket. The fastest rate of growth was in dig­i­tal video ad­ver­tis­ing, which ex­panded 46 per cent to reach spending of €68 mil­lion.

IAB’s fig­ures are de­rived from fig­ures pro­vided by 27 on­line pub­lish­ers as well as es­ti­mates of the Ir­ish ad­ver­tis­ing rev­enues for plat­forms such as Google, Face­book, Twit­ter and LinkedIn.

Fur­ther dig­i­tal growth is ex­pected. Core Media fore­casts that on­line ad­ver­tis­ing will ac­count for more than half the to­tal ad­ver­tis­ing mar­ket in 2018, as tra­di­tional media rev­enues de­cline again.

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