Online advertising expenditure for 2009 reached €97.2 million according to the first IAB Ireland and PricewaterhouseCoopers (PwC) adspend study. This claimed 'strong performance' was recorded despite a particularly challenging economic outlook and its devastating effect on the general advertising industry. The total Irish advertising market is estimated to have been worth €940 million in 2009.

In 2009 in Europe, online’s share of overall ad spend continued to increase significantly across the continent.  The UK has the highest market share at 30%, followed by the Nordic markets at between 20% - 25% and France and Germany close to the European average of 18-19%.  Ireland has lagged many European countries in terms of business adjustment to the Internet and the availability of broadband.

Figures from the Irish advertising body, the IAPI in 2007 showed that advertisers spent €13.5 million online across 90 Irish websites in 2006, excluding Google, MSN, YouTube and other international websites and networks. Search engine marketing, meanwhile, was estimated to be worth €30 million a year in Ireland, according to Amarach Consulting. Total Irish advertising expenditure was €1.3 billion in 2006.

The claim that €97.2 million or 10.3% of the total, was spent on web advertising in 2009 seems exaggerated. Popular sites, for example State broadcaster RTÉ's service and the Irish Times website have had few paid display advertising campaigns over the past year. The estimate as recently as 2008 was 4% of the total spend.

Results from the online advertising study show the second half of 2009 was stronger than the first, with online advertising increasing by €1.2 million to €49.2 million between July and December. During the first half of 2009 it accounted for €48 million. This is claimed as "a remarkable performance" in a year which saw newspaper, television and radio advertising revenues declining sharply.

Search represents 46.2% of Irish online adspend

The search format’s share of total Irish online adspend at 46.2%, which is an estimate as Google does not provided a geographical breakdown, is claimed to mirror the European market. IAB Europe’s 2009 online adspend study (Ad Ex). Irish classified and display formats achieved a 27.2% and 26.6% share respectively.

Recruitment/ Property is the top performing category

At 25% the recruitment/property sectors combined are the biggest spenders on online advertising, followed by autos at 20%.

Key Drivers for online adspend in 2009

More people online - -  According to ComReg’s Consumer ICT Survey Q4 2009 internet usage grew from 64% in Q4 2008, reflecting 2,830,144 users online, to 72% in Q4 2009 with 3,210,696 users online.

Greater time spent online: ComReg’s study shows the average time spent online increased from 10 hours per week in 2008 to 13.2 hours per week in 2009. This reflects increased viewing time of online video, streaming TV and movies as well as the dramatic growth in social media usage.

Increased broadband connection – Eurostat recorded an increase in Irish home broadband connections from 43% in 2008 to 54% in 2009.

Positive indicators for growth in 2010

75% of the IAB PwC study participants predicted growth or strong growth for online adspend in 2010.

Suzanne McElligott, Chief Executive of IAB Ireland, said:“2009 was a very challenging year for the Irish advertising industry. Online’s strong performance in this, our benchmark study, provides great confidence for the future growth of our medium.

“The measurability of online campaigns and the opportunity for advertisers to engage online with their target markets are powerful drivers of adspend as brands increase focus on Return on Investment in difficult economic times. “

Bartley O’Connor, Advisory Consulting, PwC, said:“Online in Ireland has overtaken outdoor, magazine and cinema advertising reflecting its move to centre stage. As it continues to grow and develop as a platform for entertainment, information and communication for Irish users, so too will the advertising revenues it will attract.”