Mobile adspend has seen an increase of 132% in 2014, reaching €79 million and hereby accounting for a third of all digital ad spending, research by PwC and IAB shows. Total digital adspend reached €263 million in 2014, showing an increase of 34%, which, according to the consulting firm, is expected to rise another 12% between 2014 and 2018.
Professional services firm PwC and Internet Advertising Bureau (IAB) recently released their biannual ‘Digital Adspend’ report on the advertising spend figures in Ireland*. The latest research highlights that Irish digital adspend has grown significantly, jumping 34% to reach €263 million in 2014.
A third of this digital adspend has been on mobile, which saw an increase of 132% compared to last year and now is worth €79 million. Ad spending on social media saw the second biggest increase and grew with 108% to €28.5 million, followed by Video on Demand (VoD) which grew 63%. Paid Search which grew with 43% to €137 million, now accounts for more than half (52%) of all online ad spending. Display advertising grew with 35% to €99 million, and now represents 38% of the total adspend. The other 10% comes from classified advertisement, which accounts for €27 million.
Irish mobile adspend
Looking at ‘big spender’ mobile, an even higher percentage of ad spending is visible, done via Paid Search, where 70% was spent on mobile search and 30% on mobile display advertising. The top performer in mobile adspend in 2014 is retail, which accounts for 15%, followed by FMCG (13%), finance (13%) and entertainment and media (12%).
Looking forward, the consulting firm predicts a further growth of 12% in Irish online adspend during the period 2013 – 2018. Five key growth drivers are identified:
- Growth in internet consumption – In Ireland 80% of adults uses the internet.
- Love for smartphones – 65% of adults choses to go online via their mobile device.
- Digital video takes off – 1 in 4 Video on Demand (VOD) viewers watches daily videos online
- Brands embracing content marketing and native format – Adspend on sponsorship grew by 58% across desktop and mobile platforms.
- Strong social media usage – The Irish market engages heavily on social networks, with 63% of adults in Ireland having Facebook accounts, 28% Twitter, 24% LinkedIn, and 22% Google+.
* Ireland is among the countries surveyed by IAB and PwC, who have been surveying the value of online adspend in Europe and North America since 1997. Their October survey on the UK, for instance, showed that an appetite for online video in the UK is driving digital adspend.