Ad Spend To Top €900m This Year

17 Feb 2017 | 11.53 am

Ad Spend To Top €900m This Year

Online ad spend exceeds radio and print combined

17 Feb 2017 | 11.53 am

Marketing communications group Core Media expects that advertising spend in Ireland will increase by 3.3% through 2017. Outlook 2017 forecasts spend for the next 12 months across a variety of media and predicts total spend of €915m.

Television advertising revenue will increase by 2.5% to €243 million: Broadcast TV retains resilience in the face of streaming and other online services, and more than 75% of viewing is done on the TV set at home. Services such as Netflix and Amazon Prime account for only 3% of daily video consumption among all adults, rising to 6% among 15 to 34-year-olds.

Advertising via online video will grow approximately 27% to €30 million, the agency predicts,while cinema revenue is expected to increase by 4% to almost €8 million.

Radio spend will drop by 3.5% to €123 million: Despite healthy levels of listening — 2.97 million adults listen every day for an average of 253 minutes — radio has had to battle for its share of advertising and took only 14% of advertising in 2016, down from 16% the previous year.

In the Republic, approximately 260,000 people stream music on Spotify every day. That’s more than the combined reach of 98FM and Spin 103.8 and three quarters of the daily reach of 2FM.

Print advertising spend will plummet 9.5% to €138m: Revenue fell by an estimated 9.4% in Ireland last year, a trend set to set to continue in 2017. The challenge for the sector is online reading, and Core advises Irish print media to band together to adopt a similar paywall model simultaneously.

Online spend will increase by 13.5% to €328m: While investment in online media continues to outperform the market, growth is expected to slow slightly from the 17% growth estimate for 2016.

In other areas, Core predicts sponsorship will grow 5% to €141m, while ‘out of home’ displays will grow 4% to €75m.

 

Photo: Alan Cox, chief executive of Core Media

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