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AAI Details Advertising Trends


The advertising sector is starting to reflect signs of economic stabilisation and recovery, but the pace of improvements in expenditure is lagging the wider economic uptick. That's according to the third - and latest - AAI/Nielsen Barometer, which looked at trends in the first quarter of 2014.


Prepared by economist Jim Power, the report shows that, despite a more positive outlook in the advertising sector, the environment remains challenging, with overall advertising expenditure trends still in decline but levelling out.

Through Q1 2014, the advertising spend by supermarket and grocery chains increased by 15.4%; department stores increased by 10.4% and DIY stores increased by 9.9%. Within finance, motor insurance increased by 58.8%, private healthcare insurance increased by 60.8%, mortgages increased by 183%, clearing bank increased by 240% and general banking services increased by 60.1%.

Other findings in the report note that:

•          Cable and satellite companies increased by 40%;

•          Travel agents increased by 51.3%;

•          Residential electricity suppliers increased by 53.2%;

•          Alcoholic drinks increased by 9.9%;

•          Soft drinks increased by 25.8%;

•          Washing powders and liquids increased by 155.3%;

According to Aidan Power, president of the Association of Advertisers in Ireland (AAI): “We continue to face challenges in each of our respective sectors but overall I would feel that the outlook is more positive than we have seen in recent years. Advertising has a critical role to play in driving business value and business owners are demonstrating confidence by investing more now in the area. Advertising is a key component in driving consumer demand, job creation and ultimately, economic recovery.”

Reviewing Q1 2014, Karen Mooney, Nielsen business development manager, says: “Nielsen ROI traditional advertising expenditure Q1 2014 recorded a modest 1.7% increase on Q1 2013. TV experienced a 3.6% increase, and outdoor +20.9%, while press continued a decrease overall (-4.8%).”

Elsewhere, Alan Cox, CEO of Core Media, argues that the advertising economy is still fragile but becoming stronger: “We anticipated growth of 3% this year, but latest indications suggest that spend will be up by 4.5% for the full year.  Digital media are the key driver of this growth; spends in this sector will be up by 16% year on year. Excluding digital, growth will be only 1% in 2014.

“It is important to note that spends have fallen by in excess of 40% since 2007, so we have a long way to go before the industry returns to rude health.”

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