THE ONLINE advertising market here grew by 20 per cent annually in the first half of this year to €65 million and is now the third-largest advertising medium, after print and television.
The growth is revealed in the latest biannual advertising spend study from trade association IAB Ireland and consultancy firm PwC.
The growth in online advertising spend compares to a 1.5 per cent drop to €443.4 million in spend on other media in the first half of 2011 according to data from Nielsen. Online now accounts for 13 per cent of all advertising spend.
Online display advertising grew the strongest, up 41 per cent to €20.7 million, and now accounts for 34 per cent of online spending.
Display advertising is usually brand-related and reflects the fact that large organisations are now investing significantly in their online spend, according to Suzanne McElligott, chief executive of IAB Ireland.
“Online is very much at a tipping point,” said Bartley O’Connor, head of advisory consulting with PwC. “Big companies are now running campaigns and seeing how it fits in with their overall strategy, rather than just saying let’s throw €20,000 at online this year.”
Telecommunications, fast-moving consumer goods and entertainment/media are the biggest spenders on display, each accounting for 12 per cent. Search advertising also performed strongly with growth of 17 per cent to €27.2 million. At 45 per cent it continues to be the largest component of online.
Classified advertising makes up the rest of the market, with a 21 per cent share valued at €12.7 million Property/recruit- ment and motors are the top categories in classified advertising.
Broadband penetration continues to grow with fixed broadband connections up 8 per cent in the year to the end of last June.
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