Irish digital ad spend up 31% to €445m: IAB and PwC
Programmatic advertising makes up 33% of €445m of digital advertising spend as advertisers respond to Irish consumers' rising mobile use, an IAB Ireland and PwC study into online ad spend has found. The study revealed digital ad spend in the Irish market grew by 31%, with a total of €231m ($246m) spent on mobile and €214m spent on desktop in 2016. Additionally, display advertising rose by 44% in 2016 to reach €197m, representing the highest growth rate among ad formats. Digital advertising in Ireland is entering a phase of maturity, commented Suzanne McElligott, the CEO of IAB Ireland.

Most consumers are mobile-first and advertisers are allocating their digital budgets accordingly.

Digital is now the number one advertising channel in the Irish market and, as more consumers go mobile-first, programmatic is taking its share, already capturing 33pc of display spend.

The latest IAB Ireland and PwC Online Adspend Study revealed that digital ad spend in the Irish market was up by 31pc, with a total spend of €445m.

‘IAB Ireland’s members are also committed to testing new IAB LEAN ad formats, which are lighter and less interruptive of users’ online experience’

– SUZANNE MCELLIGOTT

About €231m of this is spent on mobile, ahead of €214m on desktop.

Display advertising had the highest growth rate among ad formats, up 44pc and representing €197m in 2016.

Paid-for search ads were up 26pc and remain the dominant digital ad format, with 49pc of the total digital ads market at €219m.

Within display, social media spend reached €114m, up from €49m in 2015.

Video advertising grew 91pc to reach €47m in 2016, reflecting a strong appetite for this format.

Native advertising spend reached €82m, up 82pc from €45m in 2015.

Programmatic for the people

For the first time, the results included programmatic advertising – the automated placement of digital display ads – revealing that 33pc of display ad spend is done in this way.

“Digital is now recognised as the number one advertising channel in the Irish market,” said Suzanne McElligott, CEO of IAB Ireland.

McElligott said that the advertising industry – threatened by the rise of ad-blocking tools such as Adblock – has learned an important lesson and is focusing on improving the end-user experience.

“With this remarkable growth over recent years, the digital advertising industry is entering a phase of maturity and this brings recognition of responsibility to both consumers and advertisers,” she said.

“IAB Ireland is leading in this role with important initiatives such as the Coalition for Better Ads, research dedicated to improving consumers’ experience of online advertising.

“IAB Ireland’s members are also committed to testing new IAB LEAN ad formats, which are lighter and less interruptive of users’ online experience. IAB’s ongoing commitment to these cross-industry initiatives developed in partnership with key industry stakeholders ensures that the Irish market is well placed to deliver a responsible and innovative digital ad industry,” McElligott said.

2016 online ad spend