Home News Online Advertising Grows to €491m in 2017 But Rate of Growth Slows

Online Advertising Grows to €491m in 2017 But Rate of Growth Slows

SHARE
Pic: Shutterstock.com

The online advertising market in Ireland was worth around €491m in 2017, according to the annual IAB Ireland/PwC Online Adspend Study. This represented a 10% increase on the previous year and marked a slowdown in the pace of growth in what has now become a mature market.

By far the largest amount spent by advertisers went on paid-for-search with companies like Google. This rose by 12% to €245m, giving it a 50% share of all digital adspend.

Online display advertising, meanwhile, also rose by 7% to hit €212m while classified advertising was up 22% to €35m.

Within the display category-desktop and mobile combined- social media saw a spend of €123m in 2017 up from €114m in 2016, representing a growth of 8%. Video advertising, meanwhile, grew by 46% to reach €68m while native advertising formats – excluding social media-  were up by 37%.

According to the IAB Ireland/PwC report, the finance and retail sectors were the top spenders, accounting for 16% of total spend respectively, followed closely by the automotive sector on 15%.

The Adspend Study also shows that €264m of this €491m was attributable to mobile platforms while desktop accounted for €227m.

Reflecting the global growth trend in mobile adspend, the Irish market experienced a 14% growth in mobile advertising to €264m in 2017. Mobile now constitutes 54% of the total digital advertising spend in Ireland.

According to Shane Nolan, Chairman of IAB Ireland Board and Director of New Business Sales EMEA, Google: “Ireland’s 2017 digital adspend of €491m reflects a strong and mature advertising medium and we are looking forward to continued strength in 2018”.

Suzanne McElligott, CEO IAB Ireland added: “The 10% growth recorded in digital adspend in 2017 is a very positive performance in a challenging year for the Irish and global advertising market. IAB Ireland and our members are currently playing a leading role in Europe both contributing to and adopting IAB’s best practice across digital advertising policy, measurement and engagement. 2018 will see an enhanced digital advertising experience for Irish advertisers and users” she predicted.

Commenting on the survey results, Nuala Nic Ghearailt, Manager, PwC, added: “We have seen growth in more interactive and personalised forms for advertising in 2017. Video advertising, social media as well as some key forms of native advertising experienced strong growth. Paid search is still a very important format and commands 50% of the Irish digital advertising marketplace”.