The Irish advertising market is expected to grow by 10.9% this year
Ireland’s advertising market will grow by 10.85% to €1.23 billion this year despite growing “a little slower than expected” in its first few months, according to marketing group Core.
The expected increase in advertiser investment will follow a stronger than expected rebound of 20.5% last year, which saw the revenue advertisers spend in the Republic cross the €1 billion mark to around 1.11 billion euros.
Increases were seen across all forms of media, including print, as confidence returned to the market.
Senior Managing Director Aidan Greene said strong economic forecasts had informed his calculations for the year ahead, but noted that the group’s annual outlook report was released at a time of uncertainty and crisis, Irish consumers becoming more aware of inflation affecting their purchasing power. .
The shift to online investing is expected to continue, with many consumers embracing digital media for the first time during the pandemic.
“Before the pandemic, just under 50% of investment in the Irish media market was in digital media, including video, social media, search and display. Today, that proportion has risen to 56.3%,” Greene said.
“As the world reopens, consumers are now choosing their preferred way to be educated, entertained and empowered.”
Core, which is Ireland’s biggest advertising buyer, said global inflation trends and geopolitical developments would once again lead to “a short-term and volatile market”, with spending growing and pressure on providing “quality” media inventory contributing to higher prices for advertisers.
Print advertising revenue rose 2.9% in 2021 to €82.6m as the recovery from the Covid-triggered contraction in 2020 drove the first year-over-year increase for this support in five years.
However, Core predicts that advertisers’ spend on print will begin to fall again this year, with a 4.8% drop to 78.6 million expected.
The marketing group forecasts growth in all other media in 2022, with news publishers seeing a decline in print media offset by an increase in digital ad spend with their titles. After “significant” growth in 2021, these should increase by almost 12% to reach 37.4 million euros this year.
Total investment in online advertising “reaped the benefits of continued lockdowns and restrictions” in 2021, with revenue across search, social, classified and display ads – including online video – rising 26% to reach around 603 million euros and is expected to increase by more than 15 percent this year to 695 million euros.
Google and Meta have “continued to be major beneficiaries” of this growth, with the two tech giants estimated to account for 85% of Irish online ad spend, a sum of around €513m in 2021, with 286 million euros of expenditure. this regarding Google’s search revenue.
Meta’s Irish revenue is expected to rise 23% this year, despite any impact from Apple’s iOS update, which requires users to opt in to being tracked by apps.
Online video advertising jumped 39.4% last year to 206 million euros, with Facebook and Meta-owned Instagram accounting for 71% of that market. Google-owned YouTube also had “a good year”, with revenue in the Republic growing 25% to €22.8 million, while broadcaster players saw average growth of 20%.
Meta’s share of online video revenue this year will reach 79%, Core said, and the market is expected to grow about 21% to 250 million.
Television and other media
The television market is expected to grow another 6.8% this year to reach 276 million euros, after rebounding 21.6% last year to nearly 260 million euros.
TV spot advertising and sponsorship revenue grew in 2021, with finance, consumer goods, television and broadband, retail and government among the top categories on the rise.
Radio advertising will rise 3.2% to €112m this year, after rising 6% in 2021, while digital audio revenues from podcasts and streaming will rise 16% to cross the threshold of 10 million euros after a 30 percent increase. hundred last year.
Outdoor advertising is expected to grow nearly 19% to €67.5m this year after growing more than 17% in 2021, but the market will remain below the recorded €90.7m investment in 2019, Core said.
It’s a similar story for cinema advertising. While cinema advertising revenue of nearly €2.2 million last year was up 68% on 2020, the market – again truncated by containment closures – still represented only a third of that recorded in 2019.
Forecasts of almost €4 million in cinema advertising spending for this year, a jump of 82.5%, suggest that the recovery will not be complete in 2022.
Core acknowledged that estimates of the total size of the Irish advertising market vary and that the expenditure quoted for each medium can be “extremely different”. He called on the media industry to publish more regular market data.