New figures show that digital advertising spend in the Irish market for 2019 rose by 17% to reach €673m, but the outbreak of Covid-19 will hit spending this year.
The latest IAB PwC Online Adspend report shows that display advertising grew by 30% to €326m last year, driven by the growth of Social - which saw a 39% year on year increase - and Video which reported a 42% growth rate.
Today's report shows that search advertising grew by 7% in 2019 with an adspend of €306m and a share of 45% of the total Irish digital advertising market.
Meanwhile, classified online advertising saw an 8% year on year growth rate to give it a 6% share of the total 2019 digital adspend at €41m.
Suzanne McElligott, CEO at IAB Ireland, said she is very conscious that the current pandemic is presenting unprecedented challenges to the entire advertising industry.
But she said that Irish people have never been more engaged online. "Our publisher members report an average increase of 49% in unique users over recent weeks and as we work from home and observe social isolation users are also more active on social and video platforms," Ms McElligott noted.
IAB Ireland's survey on the impact of Covid-19 found that advertiser/agency participants predict a 10-20% reduction in digital adspend in 2020.
"73% of advertisers/agency participants believe that digital advertising will rebound in the third and fourth quarters of 2020 and we are working with all our members to assist them in their plans to reactivate online adspend," the CEO said.
Shane Nolan, Chairman of IAB Ireland Board, said that the Irish advertising industry is an agile, well connected market and in the current very challenging Covid-19 pandemic, the industry is well placed to collaborate.
"IAB Ireland and its members are now more than ever focused on working together to maintain a sustainable future for the Irish digital advertising industry," he added.