5. Digital advertising

While weak consumer demand has depressed the advertising market, one medium is experiencing significant double-digit growth and grabbing market share. New IAB Ireland/PwC data shows that digital advertising was worth €65 million in the first half of 2011, a 20.5% increase on the previous year.

This makes it the third largest medium behind TV and print, with an advertising market share of 13%. By contrast, advertising on non-digital media declined in value by 1.5% to €443 million over the same period, according to Nielsen data.

Digital is now a core part of big brand advertisers’ media strategies, rather than an also-ran. The result is that budget is flowing into a variety of digital formats. SMEs, too, are diverting scarce marketing resources into online campaigns, predominantly search.

Among the three categories of digital advertising, display advertising showed the greatest growth. Valued at almost €21 million, display experienced year-on-year growth of 41%, buoyed up by demand for social media, video and mobile formats.

Search – predominately Google – is the largest category at €27.2 million and showing annual growth levels of 17%. Online classified was worth €12.7 million, a modest decline on the first half of 2010.

Source: IAB Ireland/PWC Online Adspend study, January-July 2011

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