Ireland's first online adspend study carried out by PwC on behalf of IAB reveals:
Pictured launching Ireland's first online adspend study are (l-r) : Bartley O'Connor, (PwC Consulting), Suzanne McElligott, (CEO, IAB Ireland) and Eamonn Fallon, (Chairman IAB Ireland and Daft.ie)
- 2009 Online Advertising in Ireland approaches the €100m threshold
- Online Advertising Sector achieves 10% of Irish Adspend 2009
- 75% of study participants predict growth or strong growth for 2010
Online advertising expenditure for 2009 reached €97.2 million according to the first IAB Ireland and PricewaterhouseCoopers (PwC) adspend study. This strong performance was recorded despite a particularly challenging economic outlook and its devastating effect on the general advertising industry. The total Irish advertising market is estimated to be worth €940 million in 2009*.
Results from the online advertising study show the second half of 2009 was stronger than the first, with online advertising increasing by €1.2 million to €49.2 million between July and December. During the first half of 2009 it accounted for €48 million. This was a remarkable performance in a year which saw newspaper, television and radio advertising revenues declining sharply.
Search represents 46.2% of Irish online adspend
The search format’s share of total Irish online adspend at 46.2% mirrors the European market. IAB Europe’s 2009 online adspend study (Ad Ex) records a 46% share for search across Europe. Irish classified and display formats achieved a 27.2% and 26.6% share respectively.
Recruitment/ Property is the top performing category
At 25% the recruitment/property sectors combined are the biggest spenders on online advertising, followed by autos at 20%.
Key Drivers for online adspend in 2009
More people online – According to ComReg’s Consumer ICT Survey Q4 2009 internet usage grew from 64% in Q4 2008, reflecting 2,830,144 users online, to 72% in Q4 2009 with 3,210,696 users online.
Greater time spent online: ComReg’s study shows the average time spent online increased from 10 hours per week in 2008 to 13.2 hours per week in 2009. This reflects increased viewing time of online video, streaming TV and movies as well as the dramatic growth in social media usage.
* PwC Global Entertainment and Media Outlook 2010-2014
Increased broadband connection – Eurostat recorded an increase in Irish home broadband connections from 43% in 2008 to 54% in 2009.
Positive indicators for growth in 2010
75% of the IAB PwC study participants predicted growth or strong growth for online adspend in 2010.
Suzanne McElligott, Chief Executive of IAB Ireland, said: “2009 was a very challenging year for the Irish advertising industry. Online’s strong performance in this, our benchmark study, provides great confidence for the future growth of our medium.
“The measurability of online campaigns and the opportunity for advertisers to engage online with their target markets are powerful drivers of adspend as brands increase focus on Return on Investment in difficult economic times. “
Bartley O’Connor, Advisory Consulting, PwC, said: “Online in Ireland has overtaken outdoor, magazine and cinema advertising reflecting its move to centre stage. As it continues to grow and develop as a platform for entertainment, information and communication for Irish users, so too will the advertising revenues it will attract.”
Ends
For further information please contact:
Suzanne McElligott, CEO IAB Ireland, +353 86 226 0403. suzanne@iabireland.ie
Johanna Dehaene, Corporate Communications, PwC Ireland, +353 86 810 6542. johanna.dehaene@ie.pwc.com
Notes to Editors
Background to the study
- The IAB has been working with PwC since 1997 to survey the value of online adspend in Europe and North America.
- 29 leading publishers participated in the study, many of whom represent multiple websites. Other participants include sales houses and advertising networks.
- Participating publishers were selected on the basis of traffic data and market knowledge. We estimate that our study accounts for 90% of online adspend. Reported figures are not adjusted to account for other organisations that have not participated.
- Total advertising revenue is reported on a gross basis (i.e. including agency commission).
- Adspend revenue is drawn up on the basis of actual figures provided by study participants.
- Google does not break out its earnings from Irish advertisers. Instead PwC created an independent estimate of Google’s revenue from Irish advertisers, by extrapolating from spend data provided directly by a representative sample of Google clients.
About IAB Ireland
IAB Ireland is the trade association for the Irish online advertising industry. As a not for profit organisation IAB Ireland works with members to ensure marketers can identify the best role for online in building their brands. IAB Ireland is a member of both IAB Europe and IAB US. The IAB network shares three core objectives, namely to prove, promote and protect the online advertising industry. These objectives are fulfilled through the dissemination of authoritative research, the organisation of educational events and by promoting industry-wide best practice.
About PwC
The firms of the PwC network provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 163,000 people in 151 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. For more information see www.pwc.com.
“PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
