A report by the Institute of Advertising Practitioners in Ireland (IAPI) shows that for every €1 spent on advertising, €6 in economic value is generated. If Ireland invested at levels comparable to other countries, the study estimates the market size of the industry could exceed €3 billion, driving business growth, jobs and tax revenues for the State.
Challenges
The economic impact report, with analysis by economist Jim Power (pictured), says that despite the industry’s capacity to promote business performance, digital transformation, societal cohesion and global competitiveness, the sector faces major challenges underpinned by lack of investment and the layering of regulatory burden.
These shortcomings result in missed opportunities for Ireland Inc, including the international scaling of indigenous enterprise, at a critical moment of economic transition.
Key findings:
- Ireland spent about €1.6 billion on advertising in 2024, just 0.35 per cent of GDP and among the lowest in the EU, where the average is 0.59 per cent.
- While the sector employs over 5,000 people, it faces challenges in attracting and retaining talent.
- The report notes that the industry is at the vanguard of AI developments and can make a significant contribution to positive societal outcomes by addressing shared challenges, combatting misinformation and enhancing online trust and safety.
- The report identifies the industry as playing an important role in ensuring that AI tools are used responsibly as the Government prepares to launch a new digital and AI strategy.
- Ireland’s digital ecosystem remains highly concentrated, with 80 per cent of online spend captured by global platforms.
- The State is an important client, with public bodies investing significantly in campaigns. However, the report notes that public spending on information campaigns in Ireland is lower than international benchmarks, despite its potential to help shape public opinion on key priorities such as investment in infrastructure.
Siobhán Masterson (above), chief executive, IAPI, said: “The findings show an untapped opportunity. Advertising and communications should be viewed as a strategic investment by business and government. With the right supports, Ireland can build influential commercial creative services, strengthen our economy and enhance our competitiveness.”
