Attitudes to Advertising - Ireland - August 2017


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Mintel

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Despite taking steps to avoid advertising, there is currently little appetite among Irish consumers to pay for a premium service to do so. This does not mean that consumers accept or are happy with the advertising experience that they receive. Instead, consumers may think that these services do not represent value for money. More clearly demonstrating the benefits (eg fast page load times, greater privacy, exclusive content) of paid-for ad-free services will help providers to boost subscriptions and usage.
Table of contents

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated advertising revenues, NI and RoI, 2012-22
Forecast
Figure 2: Indexed estimated advertising revenues, NI and RoI, 2012-22
Market factors
Ad-block software usage continues to increase
Social media platforms remain a key advertising channel
Newspaper ad revenues fall in 2016
Device ownership remains at peak levels in Ireland
Companies, brands and innovations
The consumer
Social media the most effective online advertising channel
Figure 3: How effective consumers find different online advertising methods, NI and RoI, June 2017
TV the most effective offline advertising channel
Figure 4: Offline advertising methods consumers consider effective (noticeable), NI and RoI, June 2017
Irish consumers taking steps to avoid advertising
Figure 5: Agreement with statements relating to advertising, NI and RoI, June 2017
Irish understand ads keep some services free to use
Figure 6: Agreement with statements relating to advertising, NI and RoI, June 2017
What we think
THE MARKET WHAT YOU NEED TO KNOW
Advertising expenditure continues to grow in 2017
Usage of ad-blocking software remains high in RoI
Ad revenues at RoI newspapers fall in 2016
Multi-device ownership continues to be a challenge for advertisers
MARKET SIZE AND FORECAST
Advertising revenues to grow in 2017
Figure 7: Estimated advertising revenues, IoI, NI and RoI, 2012-22
All-Ireland adspend growth over next five years driven by RoI
Figure 8: Indexed estimated advertising revenues, NI and RoI, 2012-22
Strong growth in online advertising expenditure in 2016
Figure 9: Online advertising spend, RoI, 2009-16
Figure 10: Year-on-year percentage growth rates for digital advertising formats, RoI, 2015-16
Desktop spending continues to grow in 2016
Figure 11: Breakdown of desktop advertising spend, RoI, 2013-16
Search dominates spending but display grows twice as fast
Figure 12: Breakdown of mobile advertising spend, RoI, 2013-16
Figure 13: Mobile spending as a percentage of total online advertising expenditure, RoI, 2013-16
MARKET DRIVERS
Usage of ad-blocking software almost doubles in RoI
Figure 14: Devices using ad-block software on the open web, by country, December 2016
Figure 15: Internet users with ad-block software on their desktop computers, RoI, January 2016 and December 2016
Google to block annoying ads on Chrome
High device ownership positive for online advertising
Figure 16: Ownership of or access to mobile technology devices, NI and RoI, 2015-17
Newspapers see advertising revenues fall
Figure 17: Advertising revenue generated by newspapers (print and digital), RoI, 2011-16
Overall circulation declines, digital readership grows
Figure 18: Newspaper circulation, RoI, 2015 and 2016
Figure 19: Newspaper readership, RoI, 2012/13-2014/15
Social media remains an important channel for advertising
Figure 20: Top five social and media networks that consumers log on to regularly (ie log on at least once per week), NI and RoI, April 2017
Facebook metrics suffering errors
Figure 21: Facebook audience reach versus ONS population estimates in selected age groups, UK (including NI), March 2017
Gender stereotyping in advertising to be banned
GDPR less than a year away
and many firms are not ready for new regulations
Figure 22: Top three concerns marketers in the UK (including NI) have regarding the General Data Protection Regulation, February 2017
COMPANIES AND BRANDS WHAT YOU NEED TO KNOW
TBWADublin looking beyond Ireland towards international accolades
Lyle Bailie International ceases trading
Omnicom consolidating its global network
WPP seeking to push boundaries beyond digital and into virtual
WHOS INNOVATING?
Virtual Room by Unity
Facebooks Creative Hub
Google to adopt unskippable ads on YouTube
COMPETITIVE STRATEGIES KEY PLAYERS
Company profiles
An Post
Key facts
Recent developments
Carat Ireland
Key facts
Recent developments
TBWADublin
Key facts
Recent developments
Clear Channel Ireland
Key facts
Recent developments
Irish International
Key facts
Recent developments
JCDecaux Ireland
Key facts
Recent developments
Omnicom Group
Key facts
Owens DDB
Key facts
Recent developments
Publicis Dublin
Key facts
Recent developments
Rothco
Key facts
Recent developments
WPP (including MEC Ireland and Ogilvy & Mather)
Key facts
Recent developments
MEC Ireland
Key facts
Recent developments
Ogilvy & Mather
Key facts
Recent developments
THE CONSUMER WHAT YOU NEED TO KNOW
Social network ads gain Irish consumers attention
TV remains the most effective advertising channel
Half of Irish consumers fast forward through TV ads
Majority of consumers think Photoshopping should be illegal
THE CONSUMER EFFECTIVENESS OF ONLINE ADVERTISING
Social networks most effective online advertising channel
Figure 23: Online advertising methods consumers consider most effective (noticeable), NI and RoI, June 2017
Search and display ads resonate with Irish men
Figure 24: Consumers who think search and display advertising is effective (noticeable), by gender and social class, NI, June 2017
Figure 25: Consumers who think search and display advertising is effective (noticeable), by gender and social class, RoI, June 2017
Students receptive to advertising on internet services
Figure 26: Consumers who think advertising on internet media services (eg YouTube, Spotify) is effective (noticeable), by age, NI and RoI, June 2017
Social networks effective in reaching Irish Millennials
Figure 27: Consumers who think advertisements on social networks are effective (noticeable), by age, NI, June 2017
Figure 28: Consumers who think advertisements on social networks are effective (noticeable), by age, RoI, June 2017
THE CONSUMER EFFECTIVENESS OF OFFLINE ADVERTISING
TV remains most effective offline advertising channel
Figure 29: Offline advertising methods consumers consider effective (noticeable), NI and RoI, June 2017
Over-45s in RoI most receptive to TV advertising
Figure 30: Consumers who think TV advertising is effective (noticeable), by age, NI and RoI, June 2017
Sponsorship of TV shows well received by Millennials
Figure 31: Consumers who think sponsorship of TV shows is effective (noticeable), by age, NI and RoI, June 2017
Outdoor billboards better at reaching urban consumers
Figure 32: Consumers who think billboards and outdoor posters are effective (noticeable), by location, NI, June 2017
Figure 33: Consumers who think billboards and outdoor posters are effective (noticeable), by location, RoI, June 2017
THE CONSUMER INTERACTION WITH ADVERTISING
Irish consumers fast forwarding TV adverts
Figure 34: Agreement with statements relating to advertising, NI and RoI, June 2017
Early Gen-Xers fast forwarding through on-demand TV ads in NI
Figure 35: Agreement with the statement I fast forward through television adverts when using catch-up/on-demand services, by age, NI and RoI, June 2017
Parents of 5-15-year-olds looking for stronger restrictions for kids ads
Figure 36: Agreement with the statement I think there should be stronger restrictions on advertising to children, by presence of children in the household, NI and RoI, June 2017
Humorous advertising appeals to women
Figure 37: Agreement with the statement I pay attention to advertising that makes me laugh, by gender and age, NI and RoI, June 2017
THE CONSUMER ATTITUDES TOWARDS ADVERTISING
Consumers avoiding advertising but understand it keeps services free
Figure 38: Agreement with statements relating to advertising, NI and RoI, June 2017
Young and affluent consumers most likely to avoid advertising
Figure 39: Agreement with statements relating to advertising, by age, NI and RoI, June 2017
NI women most likely to think Photoshopping should be illegal
Figure 40: Agreement with the statement I think it should be illegal to 'touch up' images in advertising (ie Photoshopping images in fashion advertisements), by gender, NI and RoI, June 2017
Men claim better understanding of cookies
Figure 41: Agreement with the statement I understand how cookies affect my online experience, by gender, NI and RoI, June 2017
Figure 42: Agreement with the statement I use ad-blocking software on my devices (eg smartphone), by gender, NI and RoI, June 2017
APPENDIX DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Market size rationale
Generational cohort definitions
Abbreviations