Mobile ad spend in Ireland now at 21pc of total digital advertising spend

13 Nov 2013

Online advertising in Ireland increased to €97m between January and June of 2013, according to the latest Internet Advertising Bureau/PwC study. Mobile now represents 21pc of total online ad spend in the Irish market.

The remaining 79pc is spent on desktop advertising.

Smartphone penetration in Ireland is now at 57pc, with 67pc accessing the internet every day via smartphone.

Some 47pc of IAB study participants reported that between 41pc and 50pc of their online traffic is now via mobile devices.

About 98pc of households with children have some form of device for online access.

Significant growth is forecast for online ad spend by 63pc of the participants to the H1 2013 Ad Spend Study.

PwC predicts 14.4pc CAGR growth in Irish online ad spend between 2013-2017.

Online Adspend Growth - IAB

“Growth in the Irish digital market is following the global trend featuring increased spend on more dynamic and engaging display formats, such as video on demand and social media display, coupled with increased mobile ad spend,” said Suzanne McElligott, CEO of IAB Ireland.

“The advertising opportunity provided by the dramatic takeoff in smartphone usage by Irish consumers has now been recognised by brands, with FMCG advertisers leading the way in mobile advertising.”

In related news, Business Insider yesterday reported that Google – which is on course to reap US$60bn this year – is already eclipsing the US newspaper industry in terms of advertising.

Paid-for search remains dominant online ad format in Ireland

In terms of formats, paid-for-search advertising remains the dominant format, holding 46pc (€44.8m) of the total digital market (desktop and mobile). Display continues to perform strongly, holding a 39pc share (€37.4m) and classified advertising represents 15pc at €14.5m.

Digital Media Mix - IAB

Desktop advertising, excluding mobile, grew 5pc in H1 2013 on a like for like basis.

Spend on desktop display has grown by 17pc, driven by strong growth of 44pc in social media display and spend on interruptive display formats growing to €2.2m.

Desktop search has grown 3pc year-on-year, while mobile search has grown to €11.2m.

Financial advertisers are now the top-spending category on desktop display spend, holding a 14pc of total display spend in H1 2013, up from 11.6pc in H1 2012.  Retail is in second position at 13pc, followed by FMCG at 12.7pc.

FMCG advertisers are the top spenders on mobile display, accounting for a spend of €1.6m on mobile display. Travel and retail take the second and third positions, respectively.

The top-spending category for classified advertising in H1 2013 is auto at 36pc, followed closely by property/recruitment in second place at 35pc.

Mobile money image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years