The document provides an outlook on advertising trends in Ireland for 2013. It forecasts a return to overall growth in advertising spending of 0.7% in the Republic of Ireland, driven by an almost 11% increase in digital advertising. In Northern Ireland, it anticipates a 2.1% decline in total spending. It also discusses key trends expected across various media sectors, including the continued rise of television viewing despite new technologies, the potential for addressable advertising, and growth in online video.

1. OUTLOOK 13

2. INTRODUCTION 2
THE CONSUMER 4
TELEVISION 6
NEWS MEDIA 8
ONLINE 10
RADIO 12
OUT OF HOME 14
CINEMA 16
SPONSORSHIP 18
CONTENTS DIRECT MARKETING 20
1

3. 2013 is the year we expect to see a return to growth in the advertising economy in the
Republic of Ireland. After five consecutive years of decline, we believe the market will now
begin to reflect the stability and delicate growth that we are seeing elsewhere in the
economy. Overall we forecast 0.7% growth to a total of €698m but this is being driven by
the digital sector, which we expect to increase by almost 11% in the Republic. Excluding
digital, the underlying position is less favorable, showing a decline of 2%.
In Northern Ireland, we anticipate a rise in digital spending of circa 8% this year, but this
will be the only sector to see any growth, and overall we are forecasting a fall in total spend
of 2.1% to €159m, due to weak demand again this year.
When we look at advertising spend on a per capita basis, the difference between the two
markets becomes very clear. The level of advertising spend in ROI per capita is €156,
compared with only €89 in NI. This is an indicator of the underlying weakness in the
region, despite growing business and consumer confidence.
Reflecting on the last five years, it occurs to us that one of the key factors contributing to
the fall in spend across the island is the lack of evidence within marketing departments
regarding how effective their investment was and the implications of cutting back.
Every marketer should be able to answer the following question “what percentage of your
total sales is exclusively attributable to your marketing activities?” The reality is very few
have this knowledge. However, it is likely that most would know what their brand
awareness is from their latest brand tracker, but how useful is that? How does that help
you to prepare a marketing plan, present a budget proposal, or allocate your marketing
resources effectively?
ADVERTISING INVESTMENT PER CAPITA
IN THE REPUBLIC OF IRELAND IS 75%
2 INTRODUCTION GREATER THAN NORTHERN IRELAND

4. Surely, knowing precisely what marketing contributes to your business is essential and it We are not saying that you shouldn’t invest in brand tracking. It can be genuinely useful in
can be established by investing in market mix modeling. However, analysis of this kind is helping a company monitor its brand equity over time and identify potential problems. It
still demoted in favour of softer, blunter research into brand awareness and brand equity, can also provide useful intelligence on key competitors in terms of brand preference and
which does little to quantify the impact of marketing on sales or enable marketers to where your brand sits on the consideration set. However, we believe it is given too much
optimise the mix of their investments. emphasis and carried out too often. When is the last time you ever came out of a brand
tracking presentation feeling inspired?
Ask yourself, which would help you to convince your Finance Director more….a) being
able to show that 20% of your total sales revenue relies on marketing and that cutting the Investment in marketing analytics will give you immediate guidance on how to grow your
budget will result in sales decline of 10%, or b) showing him/her your top-of-mind profit. When used in conjunction with all the data that is washing around our companies,
awareness trend and what the consumer thinks of your brand? There’s only one answer, it will help to properly evaluate marketing performance, gain insight into purchasing habits,
really, isn’t there? and make evidence-based marketing decisions.
In our opinion, too much money and time is invested in brand tracking and too little in The use of this so-called ‘Big Data’ is helping organisations of all kinds anticipate the future.
modeling and other forms of marketing analytics. Police departments internationally are increasingly using historic data to predict where and
when crimes may happen and Barack Obama used it to win a second term by assigning
In Ireland less than €500,000 is spent per annum on market mix modeling. That is a dismal every voter in the country a pair of scores based on the probability that they would a) cast
0.06% of the total media spend (North & South). In the UK it is 0.69%, eleven and a half a ballot and b) support Obama.
times greater than the Irish figure! In the US the investment level is greater again and a
So is this the Holy Grail? No, it’s just one part of it, so is brand tracking but overreliance
recent survey of marketing directors found companies expect to increase the analytics
on it will slow you down. Remember, if you do what you’ve always done, you’ll get what
portion of their marketing budgets by 60% in the next three years.
you’ve always gotten.
Ok, now that we have that off our chest…the following pages provide a snapshot of the
Total Advertising Spend (€m) key developments we expect to see this year across the main industry sectors. We hope
you find the document useful. If you wish to discuss any of the issues, please feel free to
726.4 693.0 697.8 call me on +353 1 649 6458.
In the meantime, best wishes for 2013.
Alan Cox
168.2 162.0 158.7
UK INVESTMENT IN MARKET
2011
ROI
2012
NI
2013
MIX MODELLING IS 11.5 TIMES
Source: Core Media Estimates
GREATER THAN IRELAND
3

5. Something pivotal happened in 2012; or rather something pivotal didn’t happen. Our worst
fears were not realised; it was certainly a mixed year, but it’s worth noting that “mixed” is an
improvement on previous years.
There is a sense of a fundamental shift in the air. 2013 is being heralded as the first year we can
start to look forward again, as opposed to the years of backward glances and naval gazing.
In the Republic of Ireland, away from the sound bites and politicking, Budget 2013 was one of
pain, certainly, but also progress. It was our fifth ‘recessionary’ budget, but it’s worth noting
that as defined in pure economic terms, neither the Republic nor Northern Ireland are in
recession. Although growth is admittedly weak both sides of the border, sentiment surveys are
showing some signs of recovery, albeit from a low base.
Sentiment indices for 2012 have been the strongest in four years in ROI and are on the rise in
NI. Figures for January this year in the Republic continued the recent upward trend and received
a considerable ‘bounce’ after the predictable fall off in December.
The budget also prioritised business, in terms of the Foreign Direct Investment and SME sectors,
rather than domestic spending, which seems a prudent medium-term strategy. As a result, there
will be no huge change in consumer spending in 2013, rather a more measured approach.
However, high street retail sales in ROI have begun to turn a corner in the last few months of
2012, with December seeing a volume increase of 0.8%. More encouragingly, the value of these
sales was up by 1.1%.
Two of the key factors affecting sentiment in 2013 will be the Irish presidency of the EU, and
the G8 summit in Northern Ireland; both of which are leading to considerable international focus.
It was timely that our presidency corresponded with the final crunch talks on the promissory
notes debacle, and perhaps it was of some help in securing the landmark agreement. While
the Government’s success will have little impact on our individual pockets, the new deal should
signal a significant increase in consumer confidence and faith in the future.
As a central bank source said recently in the press, “It’s not that paradise starts tomorrow. It’s
not heaven on earth all of a sudden. It’s a good first step”
So, what are the key trends in addressing consumers in 2013?
THE “IT’S NOT THAT PARADISE STARTS TOMORROW
4 CONSUMER IT’S NOT HEAVEN ON EARTH ALL OF A SUDDEN
IT’S A GOOD FIRST STEP”

6. 01 RESEARCH 02 BE HONEST, NOT PERFECT 03 MEDIUM TERM PLANNING
Researching and understanding the consumer has This was an opportunity area we identified Changing consumer behaviour takes time. We
always been important. However, many brands twelve months ago and it is still rich and fertile often over-emphasise the importance of one
are guilty of neglecting the fact that consumers territory, perhaps more so. Brands have a real year, and under-emphasise the importance of
also conduct research. A recent study by Google opportunity to learn from the emerging three and five year cycles. Consumer decisions
has highlighted that almost every purchase is technology sector and start ups, who constantly are rarely sudden; they take time to form and
researched by consumers. Google have dubbed act on customer feedback to improve products. develop. Advertising is most effective when it
this the “Zero Moment of Truth”. Consumers are The benefit of this approach is that brands begin is consistent and long-term, continuously
looking for proof points before purchasing, as an honest dialogue with consumers. driving consideration; facts supported by IPA
opposed to the classical view of marketing in and Thinkbox show that consistent presence
which trial was the proof point. The brand can get real time, beneficial feedback can be up to twice as effective as bursts.
and take actions which will lead to real success. “Going dark” for periods of time leads to a drop
IMPLICATION In addition, the consumer gets their opinion
heard, gets to genuinely improve the product
in consumer intent, and money needs to be
The research period often lasts longer than a reinvested in recapturing that lost awareness.
standard campaign or burst of advertising, and has reason to become an advocate.
leading to a clear role for search advertising and Mistakes will happen and consumers respect
that; it’s how you respond that matters.
IMPLICATION
behavioural targeting. Using these tools to Brands prepared to take a longer view stand to
ensure that your brand appears during the make considerable gains. There are efficiencies
research period will give the brand vital stand IMPLICATION in terms of awareness planning, and ad stock
out during a key stage. It is the digital equivalent Be open. Be honest. Tell consumers what went development, not to mention real business
of making sure the shelves are stocked and the wrong. Use the dialogue allowed by social benefits from setting three year objectives.
doors are open for business. media to apologise, to discuss with and to help Prioritising messaging and products over a
consumers out of the situation. longer period will also provide a significant
advantage versus competitor brands and
Being contrite about mistakes, and canvassing
translate sustained awareness into sales.
opinions on products and advertising can be
“Always on” approaches should be explored.
extremely beneficial. It helps personify the
CONSUMER CONFIDENCE brand, and moves the relationship away from
This doesn’t have to mean larger budgets; it can
often be achieved by re-phasing; moving to
RECOVERING IN ROI AND NI the commodity territory into something deeper.
lighter and longer campaigns.
ROI NI
SEARCH ADVERTISING IS THE DIGITAL
Dec 09 Dec 10 Dec 11 Dec 12
EQUIVALENT OF MAKING SURE THE
Source: KBC/ESRI (ROI) & Danske Bank (NI)
Different index bases
For illustration only
SHELVES ARE STOCKED, AND THE DOORS
ARE OPEN FOR BUSINESS
5

7. Smart TVs, tablets, video-on-demand, catch-up, SKY Go, 3-D, Ultra HD, Netflix and Apple TV
are just a few of the technological advances that have revolutionised how we watch ‘television’
content. 2013 will be the year that we understand how this is affecting consumers.
However, before predicting the future it is important to comment on the present. Television viewing
in Ireland is higher than ever before. The average adult watched 3 hours and 35 minutes of TV in
2012, an increase of 19% on 2000. Even young adults under 34, who are generally early adopters
of technology, are watching 4% more TV than 2000. In Northern Ireland, viewing is up 29% in the
last five years for adults. The faster rate of growth in NI is due to infrastructure upgrades, which
increased the number of homes with multi-channel television.
So, why is television performing this well despite the challenges of a digital world? The main
reason has been the growth of Digital Video Recorders (DVRs) which are now in 53% of all
homes in the Republic and 44% in the North; the easy access they provide to content means
there is always something to watch. In fact, homes with DVRs watch 16% more TV content.
Although TV viewing is on the up, viewing to commercial breaks is not. One consequence of
the TV revolution has been the ability to “ad-skip”. In the US where the DVR market is mature,
55% of commercials are skipped when time-shifted. This compares to only 30% in less mature
markets such as the UK & Ireland.
It is important to note that the above figures are for time-shifted viewing only. Despite all the
hype surrounding DVRs the vast majority of our viewing is still watched “live”. In Ireland only
8.4% of viewing is time-shifted; therefore, only 3% of all TV commercials seen in a day are
skipped. Not in my household, you may reply, but remember you are not a typical viewer.
It is naive to suggest that things will always be this way; skipping will inevitably increase and
become a major issue in years to come as consumers become more used to time-shifting.
However, this is taking longer than expected and in 2013 commercial impacts are only likely to
decline by 1% due to this technology. Other factors relating to falling programming budgets may
result in an additional 2% fall in commercial impacts.
In terms of spend, TV will see a return to growth this year of 1% in the Republic, but we expect
a 2% decline in Northern Ireland due to lower demand in the region.
6 TELEVISION ONLY 3% OF ALL TV COMMERCIALS ARE FAST
FORWARDED

8. 01 SECOND SCREENS 02 ADDRESSABLE ADS 03 VIDEO-ON-DEMAND
The combination of internet access and TV Soon, with the advent of “return path data” from Overall, online video viewership is still very
viewing presents interesting opportunities for set-top boxes, broadcasters will be able to play small compared to traditional television. If we
advertisers. 58% of Irish viewers are online out seperate commercials to individual include all video-on-demand (VOD) touchpoints
while watching TV with the consequence that households. Advertisers will be able to target available to Irish advertisers (players, networks
viewers can be active consumers at the same campaigns to exactly the people they want to and YouTube), the market is only delivering 2.7%
time. In 2013, we will see this figure increase reach. In effect, two households on the same of commercial impacts. One trend that will
as penetration of tablets rise; owners of these street will see different commercials depending grow the size of the VOD market is the increase
devices are 20% more likely to watch TV and on their location, affluence, children’s ages, life in homes without a TV set. The recent digital
surf at the same time than owners of other stage, and financial outlook. SKY will begin switchover in ROI has already caused the
computers. Furthermore, 63% of Facebook testing this technology in Northern Ireland in Q3 number of TV homes to fall from 96% to 93% of
users say they “often or sometimes” use the 2013 and in the Republic in Q2 2014. households. It is reasonable to assume that a
site when watching television. significant percentage of these homes are now
IMPLICATION watching television purely online.
IMPLICATION While this may be seen as the Holy Grail, there
In 2013 we will see broadcasters offer more cross- are some data protection issues; unlike the UK IMPLICATION
media opportunities that harness this media (incl. NI) where customers have to opt-out of Despite being a small element of the market,
meshing. Indeed, future content will be produced giving their personal information when signing up the audience watching TV online is significant
with this in mind. Different genres of programming to TV services, consumers in the Republic of and growing. It is also young, a segment that
experience quite different reactions in social Ireland have to opt-in. This could significantly TV stations are finding harder to reach.
media, as can be seen from the Homeland & X- reduce the number of addressable homes in the However, research into its contribution is thin.
Factor examples shown in the chart below. This Republic, although Sky is searching for a way to Google and Channel 4 have both conducted
will influence scheduling of TV commercials to circumvent this problem. There will also be issues studies in the UK, but nothing in Ireland. We
obtain the highest levels of engagement. Across regarding the way airtime is sold, which will lead are keen to make our own assessment, and in
Europe 33% of ‘second-screen’ viewing is directly to higher priced inventory, but 2013 Core Media will produce its own research
related to the content being watched on the ultimately more efficient into how VOD affects TV campaigns on this
television; this highlights the importance of a campaigns. island.
consistent online and TV strategy. TWEETING PATTERNS
VARY BY PROGRAMME
TV SPEND (€M)
213.0 202.0
200.3
VIDEO ON DEMAND ACCOUNTS
97.4 91.6 89.7
XFACTOR HOMELAND
2011
ROI
2012
NI
Source: Core Media Estimates
2013
Source: Second Sync
FOR ONLY 2.7% OF TOTAL
COMMERCIAL AUDIENCE
7

9. As stated in last year’s outlook, the “news” part of newspapers is doing fine. It’s the “paper”
part that’s the issue. In the intervening time, most of the industry have accepted this. Last
summer, the Newspaper Marketing Agency, the body that seeks to raise awareness of the value
of newspapers in the UK, was rebranded as Newsworks. This new name, removing the word
"newspaper" from the title, is indicative of the changed landscape of the industry. Similarly, its
members are now referred to as “newsbrands”.
This change is symbolic of the new reality in the national press industry, which now needs to
operate across a range of different platforms – desktop computers, laptops, tablets and
smartphones - as well as print.
While this might appear cosmetic, there is no doubting the importance of branding. A product’s
brand is a statement of intent. Not only does it inform its users what to expect and what it
stands for, it also helps the company stay focused and inspired. 2012 was a tough year and
another lean year is predicted. An industry-wide reframing and renaming of the newspaper
business will show how the sector is embracing the changing way news is being consumed.
Removing words like “paper”, “print” and the related iconography from the industry’s awards
ceremonies, representative bodies etc. will bring more integration and will encourage agencies
to incorporate the full scope of what each publisher has to offer.
NEWS INTEREST IN NEWS IS SOLID
8 MEDIA READERS ARE MERELY CHOOSING DIFFERENT
METHODS OF CONSUMPTION

10. 01 BIGGER DATA 02 PAY TO PLAY 03 A MATTER OF TRUST
While there is no doubt that the Joint National The perennial question “why would I pay for content A recent study by the Annenberg Centre in the US
Readership Survey (JNRS) is a very robust piece of that I can get for free?” still needs a decisive industry- found most internet users have limited trust in the
research, the content has been growing less relevant. wide answer. This is a challenge all publishers must information they find online. Only 40% of users said
Alternative sources such as Target Group Index (TGI) face, as digital editions become a larger part of their that most or all of the information on the Internet
are being used to make ‘macro’ planning decisions, business. According to the Audit Bureau of is reliable – a decline from 55% in 2000.
given the greater breadth of information available Circulations in the US, digital newspaper
through lifestyle statements and brand consumption. subscriptions saw a surge of 63% in 2012. It now Internet users rated newspapers highly for the
That said, the JNRS data is still the currency by which accounts for 14% of the total circulation mix. A
‘micro’ planning decisions are made, due to the larger quality of news content, the breadth of coverage
standardised global payment model needs to be in
sample size of the survey. There is a clear need for and the trustworthiness of the reporting.
place before the end of 2013 if Irish news media are
research that combines the robustness of the JNRS to capitalise on a digital “cover price”. Furthermore, 63% of online users said they
with the flexibility and usability of TGI. Another issue would miss the print edition of their newspaper
has been the lack of research that combined the print
and digital audiences for news media.
IMPLICATION if it was no longer available, an increase of seven
percentage points since 2007.
Are Ireland’s readers ready to subscribe to premium
content? We think the answer is a resounding “yes”.
IMPLICATION The proliferation of tablets, consoles and smartphones IMPLICATION
The industry understands the need for change and has normalised low-cost digital subscriptions.
has taken positive steps forward. Firstly, it has The lack of trust that consumers have in content
tackled the digital issue; respondents are now being Some newspaper titles are having success through they find online represents the greatest
asked about their consumption of the print, digital and the introduction of a pay-walled digital & paper model. argument for news brands to embrace the
online iterations of a title. Top-line results will be The New York Times has grown its total paid digital challenge. It also makes a clear business
released in the next survey, with full data available in circulation by over 40% to 1.6 million. This is split case for charging users for this trust.
the autumn. Initial results are very encouraging, roughly 50/50 between the digital and paper versions,
showing what every smart planner suspected; but from Monday - Friday there are around 25% more Trust is the most valuable asset that any news
consumption of news is solid; readers are merely digital subscribers than paper. On Sunday, however, brand could hope to attain. It takes many years
choosing different methods of consumption. it is reversed with 47% more papers sold than online to nurture and Irish publishers have it in spades.
Secondly, the NNI is joining representatives from subscriptions. It is important that they push forward with plans
Radio, TV, Outdoor and IAPI to explore the to monetise this competitive advantage whilst
With international precedent and
introduction of a cross-media research initiative, local appetite, our titles should they still have it. In a world of confusion and
which would provide a holistic and robust view of commit to a standardised pay fragmentation, trust is the most valuable
consumers’ media behaviours. GLOBAL DEVICE SHIPMENTS structure, which will place commodity of all.
300,000 real value on the premium
nature of the product.
NEWSPAPER/ 250,000 TABLETS
MAGAZINE SPEND (€M) 200,000
215.5
150,000
184.0 SMARTPHONES
170.0
100,000
27.8 26.5 24.9
50,000 PCS
TRUST IS THE TRUMP CARD THAT
2011
ROI
2012
NI
Source: Core Media Estimates
2013
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Source: Gartner, IDC, Strategy
NEWS BRANDS HAVE TO PLAY IN
Analytics company releases
THE DIGITAL FUTURE
9

11. In 2012 investment in online media increased by 14% on an all-Ireland basis, taking 22% share
of total media investment in the Republic, but only 10% in Northern Ireland. The key drivers of
growth have been ‘richer’ ad formats (e.g. home page takeovers), video-on-demand and mobile.
This growth is set to continue and by 2015 we expect online will be the largest media sector in
the Irish market, commanding 28% share of spend.
The advent of programmatic media buying will gain momentum this year as more Real-Time
Buying (RTB) solutions become available. This will open up new options for direct response
advertisers to derive stronger return on investment, as these platforms allow for greater targeting
and use of campaign data.
Search is still dominated by Google, which accounts for 95% of revenue. Bing has failed to make
an impact so far, which is unfortunate because the market needs an injection of competition.
Mobile spend is growing and is likely to reach €4m in ROI this year. The NI market is at an
earlier stage of development and investment is likely to remain under €500k in 2013. However,
this is just the beginning; by 2016 mobile spend will treble to almost €15m across the island.
2013 will see further growth in the tablet space with increased choice and possibilities. By the
end of this year there could be 1.25 million devices in NI & ROI combined.
The growth in social media penetration is leveling off, with over 3 million people on the island
using at least one of the social networks. However, usage continues to rise as smartphones
open up the ‘always-on’ culture. Facebook, YouTube and Twitter continue to be pervasive, but
we see discreet audiences building across other networks such as Tumblr, Pinterest and
Instagram. For the B2B market Linkedin is still the only game in town, with over 800,000 monthly
users across the island.
We shouldn’t write off Google+, because the company is determined to position it as the glue
that brings together its interfaces across search, mobile and software. As social content
becomes more search-friendly expect to see Google+ being used as part of more effective SEO
strategies in 2013.
10 ONLINE BY 2015 ONLINE WILL BE THE LARGEST MEDIUM IN
IRELAND WITH 28% MARKET SHARE

12. 01 MOBILE EVERYTHING 02 LISTEN & LEARN 03 DATA
Consumers have adapted to smartphones in huge The Social Graph is the network of content that All companies are producing massive amounts
numbers; penetration has passed the 50% mark in search engines such as Google trawls to provide of data as a by-product of their interactions with
ROI and is approaching 40% in NI. Up to 3 million consumers with opinion and feedback on everything consumers. However, most companies are not
devices will be in use across the island before the end from world politics to the best marinade sauce. These harnessing this opportunity for commercial
of the year. However, an estimated 95% of Irish searches are not only being done via the traditional gain. Companies like Amazon, Google and
websites are not built for mobile; they are too fat and search engines; ‘social search’ is also becoming an Facebook only make business decisions based
cumbersome. Expecting a consumer to squeeze and important feature of the market.
on highly sophisticated data-led insights, and
pinch a content heavy site will just lead to losing
Many brand owners are not recognising the power that data is the driver of their business success.
them. With mobile Internet usage forecasted to
overtake desktop usage, every business needs to and influence of the Social Graph as a means to A recent survey by Experian found that 72% of
rethink how they are presented online; a mobile-first understand consumers - what they are saying about companies have started to implement a ‘single
strategy is what’s needed. your brand, your competitors, what they like, what customer view’, but… only 2% can currently
they dislike, what they want. Effective social listening integrate all of the data they capture. It is
IMPLICATION provides insight on tap and, in the right hands, will
power a business like never before.
mission critical that all companies have a data
Any brand that relies on its website to deliver business strategy to refine their business planning and
grow revenue.
results needs to have a strong mobile presence. Sites
and content management systems need to work IMPLICATION
across all Internet platforms, creating a seamless Every consumer segment is now online, so brands
need effective social listening programmes to garner IMPLICATION
experience for the consumer. Techniques such as Organising data within a business can be
insight from the Social Graph. This is not about
‘responsive design’ will become more prevalent, as complicated as there tends to be multiple,
collating the comments on a Facebook page but a
they allow for the development of one master site that unconnected sources that need to be brought
formal structure for aggregating social content and
will intuitively work across all devices. together. When effectively aggregated, this
opinion to generate insight.
Consumer behaviour on mobile is different to the data can facilitate better strategic decisions as
It is important that social insight is treated as well as identifying immediate opportunities to
more familiar desktop behaviours. It is imperative
seriously as other forms of research used for tailor, personalise and track the outcome of
that site owners gain an understanding of this new marketing planning. It will deliver
realm by implementing effective tracking and marketing messages faster than previously
results when structured
usability studies. In a few years desktop Internet may effectively. But, remember possible. Imagine being able to feed data from
be a secondary market as consumers move to other ONLINE SPEND BY TYPE a brand cannot be so this morning’s retail sales into this afternoon’s
devices such as the smartphone, tablet & smart TV. democratic that it search & display campaigns; it would shorten
actually listens to sales cycles, reduce wastage and increase
everyone. Part of profitability.
ONLINE SPEND (€M)
CLASSIFIED the reason a brand
21% actually exists is
167.0 because it offers a
150.7 SEARCH
130.0 45% specific point of
view.
DISPLAY
2011
15.3 16.2
2012
17.5
2013
34%
ONLY 5% OF IRISH WEBSITES
ROI NI
Source: Core Media Estimates Source: IAB/Core Media
ARE MOBILE READY
11

13. We expect radio to fare better than most media in the Republic of Ireland with 1.5% growth in
spend this year, due to its ability to attract revenue from local advertisers, who will become
more active in 2013. The Northern Ireland market will be less fortunate with spend levels likely
to fall back by 2%.
Despite the small growth in spend in ROI, many stations will continue to struggle financially;
we estimate that less than 50% of stations are profitable in the current climate. Thankfully, the
BAI has relaxed its 20% rule in relation to news and current affairs content on music-driven/niche
stations. Broadcasters such as Phantom and Nova have received approval to reduce their
current affairs output to 12% and 10% respectively, whereas Beat’s requirement has fallen to
15%. These changes will reduce the overhead burden and improve the flow of programming
across the day on these stations.
Radio broadcasters in the Republic feel they have been put at a disadvantage since television
commercial codes were relaxed in 2011 with the introduction of product placement. They will
continue to lobby the Broadcasting Authority to permit commercial references to be integrated
within programming, as is the case in Northern Ireland. We expect the BAI to take these
concerns on board and make the appropriate changes.
The development of digital broadcasting has stalled in the Republic. Digital, in one guise or
another, will inevitably take over from analogue in the future, but it will be interesting to see if
it’s DAB or internet radio that wins in the long run.
The emergence of internet ‘pure-play’ streaming services is an exciting development that poses
a serious threat to the domestic radio sector in the medium term. Traditional radio will endure
because people want the two-way relationship, but according to research we carried out in
January, 18% of regular listeners listen to radio for music, and for no other reason. This is a
substantial minority who are likely to convert to the online option gradually over the next few
years.
12 RADIO 18% OF REGULAR RADIO LISTENERS LISTEN TO
RADIO FOR MUSIC, AND FOR NO OTHER REASON

14. 01 INTERNET RADIO 02 MOBILE 03 SONIC BRANDING
In the future, the industry’s focus will shift from the The vast majority of listenership to radio takes Memory and sound are inextricably linked. We all
repetitive nature of formatted radio to a concentration place where we live; 65% of weekday prime- remember music from commercials we experienced
on the user experience and real choice that internet time listening in the Republic is done at home, in our childhood and memories come back when we
radio offers. We are not referring to simulcasting of FM 13% at work, 20% in the car and just under 2% hear them. Today, these devices (such as McDonalds
transmissions online, but the exciting development of on our mobiles. With smartphone penetration Ba da ba ba ba or the Intel Inside sonic device) are
‘pure-play’, where the listener designs their own music growing all the time, the incidence of mobile as important as visual brand references.
channel, and can pause or skip the music. This form of listening will grow, but it’s the car where the
biggest revolution will take place. In the words of production company, MassiveMusic
radio has taken off in the United States, where the
market leader, Pandora, already has 66 million active The ‘connected car’ will combine the benefits of “With music we can have enhanced memory recall.
users and 8% share of all radio listening. a smartphone with the latest in-car audio Tying the proper music and sound design to a brand
systems. Ford has achieved this marriage of can create a sense of familiarity, comfort and a direct
Pandora is not accessible in Ireland, but similar technologies to bring the internet to the car in memory."
services are available; the most recent addition, the United States. It’s called SYNC AppLink and
Spotify, has a database of over 18 million songs, provides motorists with a way to listen to online Many sonic triggers are created for TV and then
providing users with vast choice across all genres. radio using voice commands. It also provides adapted for radio, with consequent benefits in terms
Users can select a free service (with advertising) or access to innovative apps like Kaliki that read of frequency and campaign longevity. However, only
premium commercial-free options ranging from magazine articles to you! The system hasn’t a minority of campaigns make use of this effective
€4.99 to €9.99 per month. Since its launch in ROI in reached our shores yet, but these exciting technique.
November Spotify has secured 65,000 active users technologies will breathe new life into the in-car
and hopes to reach 140,000 by the end of this year. experience over the next three years. IMPLICATION
Sonic branding not only provides stronger recall
Penetration in NI currently stands at 25,000. IMPLICATION among your core target market, it also delivers the
IMPLICATION The big question is whether internet radio will win
out over the Digital Audio Broadcasting (DAB)
added benefit of connecting with tomorrow’s
consumers. This can create a warm and long lasting
Although pure-play accounts for only a fraction of platform, which has been heavily backed in the UK
listening in Ireland today, we expect it to grow to 20% connection with the brand as consumers mature over
in recent years. 33% of all new cars in the UK have
by 2020. Interest in the sector will be piqued when DAB installed, but the technology is time.
Apple launches its own ‘radio’ service in the first half already outdated and has been However, selecting the right musical device is not
of 2013. While these webcasters offer commercial- overtaken by the internet in easy. It should be carefully chosen and tested to
free options, circa 80% still choose the standard terms of quality and
THE PRIMARY REASON FOR choice. With car predict its potential to stimulate a positive response
service and can therefore be reached through for the brand.
advertising. Enhanced targeting can be secured LISTENING TO RADIO manufacturers in
based on demographics, location and music LIVELY other countries
genre.
DEBATE
11.3%
moving toward
internet
LOCAL
RADIO SPEND (€M) NEWS devices, DAB
14.1% is beginning to
103.0 97.0 98.5
look quite
PRESENTER
11.6% redundant.
MUSIC
18.2%
13.0 13.3 13.0
NEWS, SPORT
2011
ROI
2012
NI
2013
Source: Core Media Estimates Source: Core Media/Ignite
& TRAVEL
38.7%
DIGITAL AUDIO BRODCASTING (DAB) IS
Research
BEGINNING TO LOOK QUITE REDUNDANT
13

15. 2013 will be another difficult year for out-of-home media. We are forecasting a further decline
in revenue of 2% in the Republic and 5% in Northern Ireland.
Significant price reductions are being achieved due to the decline in demand, and while agencies
will continue to put pressure on improvement, we expect media owners to seek yield protection
in 2013. However, the focus will not just be on price; we will keep applying pressure in relation
to the quality of plant and no low grade panels will be tolerated. This will result in the industry
continuing to cull less desirable sites. Billboard inventory decreased by over 6% in 2012 and
we expect a further 4% decrease this year in tandem with an improvement in the presentation
and quality of large format panels.
2012 saw the release of the new Dublin Travel Survey, which drives the coverage & frequency
model for outdoor campaigns. The survey’s new methodology has led to a re-calibration of
coverage norms for the medium, enabling planners to deliver desired coverage levels while
purchasing fewer sites. It will be interesting to see the results from the planned Cork Travel
Survey when released later this year.
In addition to delivering improved value and accountability, the OOH sector will have to continue
to innovate in order to reverse revenue declines. Alcohol advertising currently accounts for
circa 15% of outdoor revenues, but the imposition of restrictions by the Government may see
this fall further in 2013, potentially leading to an outright ban during 2014. The medium has
faced challenges like this in the past; the answer is to reinvent and invest in order to make the
medium more attractive, flexible and effective.
OUT OF
14 HOME THE NUMBER OF DIGITAL SCREENS IN ROI
WILL GROW TO 1,400 IN 2013

16. 01 POINT OF SALE 02 VIRUTAL RETAILING 03 DIGITAL FORMATS
Point-of-Sale advertising continues to grow and by In 2012 Eason launched Ireland’s first virtual book The number of digital screens in ROI is expected
the end of 2013 we expect it to account for 18% of shop at Connolly Station in Dublin. Here commuters to grow from 930 in 2012 to 1,400 this year. The
the total OOH market in Ireland (North & South). can buy bestsellers by scanning the QR code on the NI market is less developed with only 27 displays.
book with their smart phone. In China a leading e- Advertising messages on these screens can be
Historically, many FMCGs used larger formats to commerce company ‘Yihaodian’ is launching over daypart or day-of-week specific. This technology
deliver brand campaigns. However, with an 1,000 virtual supermarkets where shoppers can also offers other opportunities; for example, in
increasing emphasis on following the consumer ‘path browse around an augmented reality version of a New York, the public transport company is testing
to purchase’, POS formats have grown in importance. store, purchase products and receive delivery straight digital advertisements on bus-sides where the
to their door. message can change depending on the bus
IMPLICATION location or weather conditions.
The increased focus on POS has led to an increase in Innovation in China is seen as a good predictor of
innovation. ‘Retail Adtowers’ were recently launched future retail trends; PWC believes China may leapfrog In terms of interactivity, Near Field
in forecourts, supermarkets and off-licenses. In the retail landscapes seen in the West, going straight Communications (NFC) is now gaining
addition, Clear Channel has developed a number of to a model with fewer stores that are used as momentum. NFC has a number of valuable
retail packs, which contain 6 sheet sites in close showrooms and collection points for online shoppers. features; it enables the consumer to download
proximity to leading retailers. content by holding their mobile device close to
Over the longer term, marketers must remember to
IMPLICATION a poster, and allows the consumer to make a
OOH offers companies the opportunity to reach target contact-free credit card payment.
bring balance to their communications plans; core audiences in ‘the right place’. This does not just
brand metrics will suffer if there is an over-reliance
on short-term price promotion communication. POS
relate to a location but also to their mindset - IMPLICATION
communicating with potential customers when and With the increased mobility of consumers and
formats should continue to be used for what they do where they are most likely to be receptive. omnipresence of smartphones, digital OOH will
best, which is to communicate in-store offers and continue to transform traditional outdoor in
‘new news’ about a brand, but this needs to be Already consumers have shifted €4 billion away from areas with high footfall such as shopping
balanced with brand building further back on the path regular high street outlets to online centres and public transport hubs. This format
to purchase. channels in Ireland. Virtual retailing needs to be planned differently from regular
and mobile commerce will outdoor panels in order to deliver on the full
continue to drive this forward. benefit of their interactivity and flexibility.
ROI DIGITAL PANEL GROWTH Various out-of-home formats Although the higher costs of these panels
will evolve not just to reflect the potential added benefits, too often
deliver communication the final creative executions do not exploit the
OOH SPEND (€M) 1400 but also to facilitate e- potential offered by these screens.
57.7 930 c o m m e r c e
54.0 53.0 811
opportunities.
13.0 12.5 11.9
2011 2012 2013 OUTDOOR MUST REINVENT AND INVEST
2011
ROI
2012
NI
Source: Core Media Estimates
2013
Source: Poster Management Ltd.
IN ORDER TO MAKE IT MORE ATTRACTIVE,
FLEXIBLE AND EFFECTIVE
15

17. Much like the latest Twilight instalment, 2012 could be described as a solid sequel to 2011, not
breaking any records but performing respectably. In a year where many media struggled for
consumers and revenue, cinema fared better than most. Overall admissions were down 4% on
the island, with box office receipts down by 3%. Less disposable income and emigration were
blamed by industry insiders. An examination of the figures shows that geographic areas
experiencing higher emigration have suffered more as cinema’s core audience of 18-34 fled
these shores. It is estimated that this age segment shrank by 40,000 in the last year.
In sharp contrast to the audience declines, advertising investment actually increased by 1% in
ROI, due mainly to significant year-round activity by P&G. Northern Ireland spend was up by
almost 16% because of a major lift in cinema investment across the UK due to the success of
Skyfall. However, this growth will be reversed in both regions in 2013.
Once again the Irish box office charts looked like a Halloween party with superheroes, vampires,
hobbits, a sabre toothed tiger and even a teddy bear dominating. Battling it out for top spot
were Christian Bale as Batman and Daniel Craig back as 007; suit and tie won out over cape
and cowl as James Bond in Skyfall proved a big a hit with Irish cinema goers, narrowly edging
The Dark Knight into second place.
The march towards digital continued in 2012. 70% of all screens in the Republic and 90% in
Northern Ireland are now digitally enabled. It is expected that all cinemas will be fully converted
to digital by the end of the first quarter. This is a major step forward considering that only 47%
of screens were digital this time last year in ROI and 25% in NI.
16 CINEMA ALL CINEMAS WILL BE FULLY CONVERTED TO
DIGITAL BY THE END OF Q1

18. 01 RISE OF HOME CINEMA 02 ENHANCED VIEWING 03 BUYING DIGITAL
There is a range of entertainment options available, As cinema suffers from the growth in video-on- By the end of quarter one this year, all screens
which directly compete with cinema. Netflix, UPC on- demand it is employing technology to hit back. The on the island of Ireland will be digital. This is a
demand, SKY Go and Apple TV all allow consumers to industry is betting on ‘enhanced viewing’ as the way watershed moment and offers exciting
view high definition movies from the comfort of their to sell the cinema experience. IMAX is the best opportunities for advertisers. One of the
armchair, for less than the price of a cinema ticket. example of this where patrons are treated to a more barriers to entry has been the production costs
spectacular and immersive viewing experience involved. Producing a cinema version of a TV
It is difficult to quantify how much on-demand viewing through the latest digital projection and surround
commercial was expensive and time
is taking place, but a conservative estimate puts the sound technology. There are now two IMAX sites in
ROI and the company is is also considering re- consuming. This will now be a thing of the past,
market at 650,000 homes in ROI and NI combined.
Netflix (with 87,000 unique users in ROI and 43,000 in opening its screen in Belfast. dramatically reducing the entry cost for
NI) has said that its service has taken off faster in advertisers. Furthermore, it will offer greater
Ireland than in the UK. Odeon has also introduced two ‘isense’ screens and flexibility when it comes to targeting specific
Omniplex is launching its first ‘Omnimax’ screen in films, regions and copy changes.
Cinema’s biggest advantage is that it’s the only place Drogheda; both are similar products to IMAX. It seems
to see the very latest movies. However, this advantage that a technology arms race is underway between
providers of in-home and out-of-home viewing to win
IMPLICATION
is diminishing; Skyfall finished its cinema run in the Carlton Screen is expecting to launch its plans
second week of December and will be available on the battle for consumers’ entertainment time.
for selling 100% digital in March and is keeping
iTunes, just 12 weeks later. While cinemas are strongly
opposed to any shortening of this gap, this trend looks IMPLICATION tight-lipped about details until then. However,
at a minimum the usual barriers to cinema such
set to continue as ‘on-demand’ providers strengthen With on-demand clearly here to stay, cinema has to
keep giving people reasons to consume their product as cost, time and flexibility should be reduced.
their ties with the big film companies. Agencies will of course be keen to see what
out of the home.
extra can be done. In a world where the next
IMPLICATION IMAX is not new to Ireland - this is its second coming. step for TV is to serve specific creative to
Competition amongst the different suppliers of on- However, rather than short films produced to specific audiences, 100% digital should allow
demand should see the quality of movies improve and showcase IMAX, each distributor tailors its biggest exciting developments in targeting those
the price drop. These factors combined with faster releases for the enhanced viewing
watching the silver screen.
broadband should see a big increase in on-demand experience. IMAX and its
viewing in 2013. This will have an impact on cinema imitators are becoming
admissions and we expect a further decline of 2% in CINEMA ADMISSIONS known as the ultimate
admissions again in 2013, as a consequence of this. way to see a movie.
ROI NI
However, with only
five sites on the
CINEMA SPEND (€M) island, it will take
some time before
7.2 7.3 7.3 it makes any
discernible
difference to
16.4m 15.7m 15.3m 5.9m 5.6m 5.5m
overall admissions
1.7 2.0 1.7 2011 2012 2013 2011 2012 2013
2011
ROI
2012
NI
2013
Source: Carton Screen
Advertising/Core Media
ADMISSIONS FELL BY 4% IN 2012 AND
Source: Core Media Estimates
WILL DROP BY 2% THIS YEAR
17

19. Last year was a showcase year for Sponsorship with the Olympics and Euro 2012 grabbing the
headlines. P&G’s sponsorship of the Olympics clearly demonstrated the ability of a well-executed
platform to deliver a return at the checkout; its Olympic campaign covered 34 brands and four
million stores worldwide and is estimated to have yielded $500m in incremental sales for the
company.
The key to successful sponsorship is identifying properties that consumers are passionate about
and showcasing this involvement through the activation of the sponsorship, by providing rich
experiences and valuable content. Sponsorship in all its forms (product placement, event, venue
and broadcast) is evolving in this direction and the P&G campaign exemplifies this.
Consumer involvement in sponsored events is a major factor in their success. Research by
Professor Tony Meenaghan has shown that increased fan involvement in a sponsored activity
evokes a positive emotional response towards the sponsor, but this attribute has not been
universally embraced in sponsorship activation; this needs to change.
Naming rights have become popular in recent years; this form of sponsorship can catapult a
brand to the top of a consideration table for many consumers. Some major deals have been
struck including The O2, The Aviva Stadium and Bord Gáis Energy Theatre, all of which are
playing a significant role in customer retention and loyalty programmes for these companies.
However, sponsorship has not been immune to the decline in marketing investment over the
past few years; in 2012 spend fell by 8% to €130m in Ireland (North & South) and we only
expect a marginal increase in 2013.
Looking further ahead, spending in this sector will grow substantially as viewers become
increasingly able to avoid exposure to TV commercials through the use of Digital Video Recorders
(DVRs). In response we will increasingly use sponsorship and product placement to compensate
for the lost commercial impressions.
18 SPONSORSHIP P&G’S OLYMPIC CAMPAIGN YIELDED $500M IN
INCREMENTAL SALES FOR THE COMPANY.

20. 01 PRODUCT PLACEMENT 02 RETURN ON INVESTMENT 03 MULTI-SCREEN WORLD
Product placement has witnessed strong growth in Marketing performance has never been more Today’s consumer is a rabid media multitasker,
recent years as changing media habits and fewer important. As sponsorship evolves beyond but with the right insight, this behaviour creates
restrictions lead us to find new ways to reach the awareness objectives, the real challenge is an opportunity for us to deliver more audience
increasingly distracted consumer. demonstrating its ability to drive commercial results. engagement.
Since the BAI permitted the introduction of product Traditionally, sponsorship was evaluated on changes
Honda’s sponsorship of documentaries on
placement in 2011, there has been strong interest in the in awareness or moving consumer attitude scores,
but these metrics are soft in a world increasingly Channel 4 is a good example of a brand that has
area. Big deals including Spar/Fair City and Emirates
focussed on harder measures like share growth and embraced the multi-screen world with a
Airlines/Masterchef demonstrate what’s possible to date.
volume sales. For many years ‘equivalent media sponsorship. The stings were designed to drive
Globally, product placement grew by 12% to €8.3 billion value’ was also used to measure the worth of a viewers to an online hub where a series of mini-
in 2012, with the majority of that spent in film and TV. sponsorship but this too is irrelevant as it bears no documentaries were housed starring real-life
Skyfall was 2012’s best example of the power of this relationship to the objectives of the project. We must customers who use their Honda products in
form of marketing. forecast the real commercial value of sponsorships extraordinary ways. Facebook and Twitter
and prove it afterwards. activity was also used to entice users to visit
Product placement, however, continues to be a divisive
area. The fusion of commercial and entertainment IMPLICATION the hub.
content comes with some questions, particularly in Be very clear when defining your objectives before Multi-screen opportunities are just as relevant
relation to trust. investing and if your primary goal is not to drive sales, in a non broadcast environment. With an
ask yourself why. Sometimes, the goal will be about
IMPLICATION driving awareness, but only as a means to sell more
explosion of smart mobile devices, every
touchpoint now has the ability to deliver added
Marketers must be careful not to irritate viewers; it can product and this is the piece that can’t be forgotten
lead to the brand being talked about for the wrong and often is. value content. Moreover, this is the growing
reasons. The more natural the placement fits with the expectation of consumers.
environment, the more consumers will accept it; being It is important to resist the tendency to justify the
too overt risks a damaging loss of credibility. As a US investment based on KPI movements in brand tracking
surveys. It is possible to accurately
IMPLICATION
broadcaster once said “Our philosophy is if the brand Consider the layers that you can provide to
unpick the return on investment of
doesn't make the show better, the brand doesn't make consumers as part of your sponsorship
a sponsorship from the effects
the show. People must not notice the integration, but they of the rest of the marketing platform. Can you use exclusive content assets
must remember it. That's the test." It’s a subtle art. GLOBAL PRODUCT to provide deeper engagement? Can you
PLACEMENT SPEND mix by using econometric
modeling. It is the only provide exclusive promotional codes to unlock
true way of discounts or deals in-store? Can you deliver
establishing whether more information about your brand in a
SPONSORSHIP SPEND (€M) €8.3Bn your sponsorship compelling way in the right environment? All of
€6.71Bn €7.41Bn endeavours are these questions should be considered to unlock
130.7 €6.25Bn making you money
117.3 118.0 the opportunities of a multi screen world.
or not.
2009 2010 2011 2012
11.1 13.1 13.3
2011
ROI
2012
NI
Source: Core Media Estimates
2013
Source: PQ Media Global GLOBALLY, PRODUCT PLACEMENT GREW
BY 12% TO €8.3 BILLION IN 2012
19

21. In an age where return on investment plays the key role in marketing decision making, knowing
with certainty that you are reaching your intended audience has never been more important.
As a result, the direct marketing industry is faring well with all sectors showing positive growth.
Direct marketing now accounts for a third of marketing budgets (up from 28% in 2010), despite
the lack of a post-code system in the Republic of Ireland. Successive governments have made
commitments to introduce national postcodes, but this has met with delay after delay, leaving
Ireland as the only country in Western Europe without one. In our view the introduction of this
system will take place in the next 12 months and its arrival will further stimulate the market
through the availability of a wider range of targeted services. Knowing exactly who’s receiving
your communications will help reduce wastage for brands and further improve on the relevance
of communications for consumers, leading to a more effective communications channel for all.
In the meantime, there are still a number of strong products available to tailor communications
to a targeted audience, and the importance of these products will continue to grow. In fact, the
ability to target a specific audience remains a primary strength of direct mail versus other
communication channels, including email. Businesses that collect additional information about
their customers can develop very personal campaigns through the use of variable data printing.
In recent years the direct marketing sector has seen a shift into digital forms of communication
at the expense of mail, primarily to reduce costs. However, the high volumes of untargeted e-
mail and spam have created some antipathy towards e-mail. This has resulted in a
reassessment of the strength of direct mail and a growth in understanding of how to match the
medium with the message. Consumers talk of the need for in-depth, important information to
be sent by post, rather than e-mail. As one USPS customer puts it “E-mail may be the base of
your communications with me, but I’m getting too much junk. If it’s really important, send it to
me by post.”
In 2013, the consumer will increasingly expect direct mail that is relevant to them, specific to
them, and focused on giving them added value.
DIRECT
20 MARKETING DIRECT MARKETING NOW ACCOUNTS FOR A
THIRD OF MARKETING BUDGETS