Irish online display ads are performing 7pc more strongly than the equivalent medium in the UK, according to online publishers. But, at just 10pc of the ads market, Ireland is behind the UK where online is now 30pc of the ads market.
According to a study published earlier this week by the Interactive Advertising Bureau and PricewaterhouseCoopers, total Irish online adspend reached just short of €100m and accounts for just more than 10pc of the general advertising market that includes newspaper, TV, radio, outdoor and cinema.
Online advertising in Ireland
This new study recognises the significant size of the online advertising industry in Ireland where the display category outperforms the UK equivalent by almost 7pc, according to the Association of Publishers, Ireland (AOP), which represents mainstream publishers RTE.ie, Irishtimes.com, Independent.ie and Entertainment.ie
Both the display category and the wider online advertising sector have demonstrated great resilience, particularly during a time of extremely challenging economic conditions in 2009.
Some 75pc of the IAB/PwC study participants are predicting growth or strong growth in 2010.
“There are many positive messages to take from this report. But above all, it confirms that display advertising is an integral part of any online campaign in Ireland and proves the confidence that advertisers have in AOP Ireland member websites,” said AOP Ireland member and managing director of Independent Digital, Ian Byrne.
At 10pc of overall adspend, online advertising in Ireland lags significantly behind other European markets. Online advertising in the UK is valued at more than stg£3.4bn and enjoys a 30pc market share.
Online advertising in Europe
This level of penetration is closely followed by Scandinavian markets and then Germany. Ireland currently lines up with lowly placed Italy and Spain.
“It is encouraging that the Irish digital advertising market is growing at a positive pace in online display,” said UK Association of Online Publishers (UK AOP) director Lee Baker.
“As the Irish market continues to grow, it is our experience that collaboration and commitment to quality content can only accelerate the speed of development.”
“Undoubtedly there is room for considerable growth here in Ireland,” said Julian Douglas, managing director of Entertainment.ie.
“As certain demographic groups become more difficult to influence through traditional mediums, marketers will divert more of their advertising and communications investment to online, taking advantage of the audience reach and targeting ability that online provides,” Douglas added.