Advertising spend in the Irish market in 2023 is expected to grow by around 6% to €1.7bn according to the latest forecasts published by the IPG-owned media agency Magna Global.
With just a few days to go until the end of the year, advertising spend in 2022 amounted to €1.6bn according to Magna. An estimated €1.2bn of this is attributable to digital, a growth of 9%. “Digital advertising sales already account for almost 70% of total advertising activity, above the Western European average of 63%. Within digital ad formats, Digital Video (+15%) and Search (+15%) will see the strongest increase, while Social (+1%) will stand,” the Magna research notes.
On the linear media side, growth of around 6% was achieved in 2022, buoyed by TV (+9%), OOH (+11%), and radio (+7%), Magna notes. Print, meanwhile, was down by 2% it says.
“Although the overall ad spend market has recovered from the COVID impact, linear media has not yet returned to the pre-pandemic level. Television, OOH, and Radio are expected to recover, while Cinema will still slightly below 2019 level by 2027. Print will keep the long-term declining trend and come to only one third of the pre-pandemic market share by 2027,” it adds.
For 2023, traditional media will grow by 3% with TV revenues anticipated to keep stable at 2% and “keep flat or decline slightly for the next few years,” Magna notes. Radio, meanwhile, will continue to grow but “keep stable at +4% “ while OOH will surge by 16% mainly due to the continued growth of DOOH, Magna says. Digital media, meanwhile, is expected to grow by 7% .
According to Simon Nagle, trading director IPG Mediabrands: “Our forecasts show that we will see less growth than previously estimated for 2023. While we face uncertain times, we do expect growth next year and remain optimistic of what that transpires to be.”