Ireland’s advertising industry will see a one per cent growth rate in 2014, WPP’s GroupM says in its forecast publication, This Year, Next Year. While the growth is modest, it is in contrast with the downward trend over the past five years. GroupM says the growth will bring the Irish advertising market back to €735 million net. Digital will again see the biggest growth at 10 per cent, giving it a 21 per cent share of the total market with €153m.
In fact, GroupM reports that all media, bar print, will either grow or remain flat in 2014. TV will increase by six per cent to €181m. Outdoor had “a great 2013”, with a swing from minus eight points in 2012 to plus eight per cer cent last year, mainly due to higher demand for large formats billboards, street-side and transport. Print revenue declines will continue despite most titles offering combined print and online deals to advertisers.
Group CEO Bill Kinlay (above) said that, although modest, it is great to see some spend growth forecast returning to Irish advertising. He said he hoped it will mark the start of the end of the recession and the realisation that Irish advertising represents value and delivers return on investment. Ireland’s growth is close to the two per cent predicted for Western Europe, with similar patterns in investment by medium.
GroupM agencies in Ireland comprise Mindshare, MEC, Maxus and MediaCom.
The UK is bucking the trend with forecasted growth of six points and digital now at almost half the market.
Globally, the expectation is for 4.6 per cent growth, with China leading the way on 10 per cent. China is already a mature advertising market, accounting for 0.75 per cent of GDP and a digital share of 24 per cent, in line with Western Europe. Brazil continues to see similar growth, but with the local economy expected to benefit from the World Cup in Rio this summer, advertising will rise by 12 per cent year on year.