Growth of Irish Internet Adspend Surpasses Industry Forecasts
- 13.5% growth in online adspend 2010 compared to 2009
- Display format was the best performer with 29% year on year growth.
- Growth trend predicted to continue for 2011 as 78% of respondents predict growth/strong growth
The 2010 IAB PwC Online Adspend Study values the Irish online market at €110m up from €97m in 2009. This represents a 13.5% increase in adspend year on year and surpasses industry predictions for the 2010 online market. Industry sources predicted that online adspend in 2010 would reach €102m.
The growth in the second half of 2010 at 15% was higher that the 12.3% growth recorded in the first half of the year over the same period in 2009.
Display Format sees most significant growth
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 26.6% in 2009 to 31% in 2010.
Online classified advertising and paid-search advertising again showed strong performances representing 25% and 44% respectively of total adspend.
Auto is the top performing category
The IAB PwC study also identifies the key spenders in the Display and Classified formats.
Auto is the top performing category for 2010 at 21%. In second place is the recruitment/property sectors combined at 17%. 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.
Key Drivers for online adspend in 2010
Increased broadband connection –The total number of Broadband connections (fixed and mobile) grew from 1,861,242 in 2009 to 2,163,642 in 2010, representing a 16.3% year on year increase. (ComReg’s Trend Unit, Comstat.ie)
Greater time spent online: 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.
Positive indicators for further growth
Media buying agency, Carat predict Irish online adspend will grow by 11% in 2011.
78% 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”.
For further information please contact:
Johanna Dehaene, Corporate Communications, PwC Ireland, 086 810 6542. Johanna.email@example.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.
- 26 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 and Facebook do not break out their earnings from Irish advertisers. Instead PwC created an independent estimate of their revenue from Irish advertisers, by extrapolating from spend data provided directly by a representative sample of Google and Facebook clients.
About IAB Ireland
IAB Ireland (www.iabireland.ie) 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 licensed by IAB US and is a member of the IAB Europe network. 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.
PwC (www.pwc.com/ie) provides industry-focused assurance, tax and advisory services to build trust and enhance value for our clients and their stakeholders. More than 161,000 people in 154 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.