Investment in Irish advertising has long lagged behind that of our European counterparts. However, Ireland now has the lowest ad spend as a percentage of GDP and one of the lowest spend per capita in the EU, MediaCom Ireland’s managing director Ian McGrath (above) points out. The recession damaged the advertising market, leaving a lasting impact.
Total Irish spend fell by 40 per cent between 2008-2012. Despite market growth being repeatedly forecast, spend has remained stagnant since the depth of the recession over eight years ago. “This would be understandable, if the rest of the Irish economy had not bounced back with such a bang, significantly outperforming other EU countries,” McGrath said.
McGrath said in highlighting the trend he was not trying to determine the reasons why businesses fail to invest in Irish advertising to the extent of other EU markets. He said the reasons are many, being highly diverse and individual to each business. It is purely to put a spotlight on the differences between spend levels in Irish advertising compared to other EU countries, while noting Ireland’s strong economy.
It is a comparison that is compelling and highlights the lack of investment in advertising that exists in Irish business. “The truth is that there’s an opportunity for businesses that invest in advertising. There’s a gap to be exploited, one which can drive penetration, capitalising on a consumer market with relatively strong margins,” McGrath added.
MediaCom clients include Sky, Coca-Cola, Allianz, Mars, Ryanair, DFS and Opel.