Attitudes to Advertising - Ireland - October 2014

INTRODUCTION
Key themes in the report
Data sources
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Estimated advertising revenues, IoI, NI and RoI, 2009-19
Forecast
Figure 2: Indexed estimated advertising revenues, NI and RoI, 2009-19
Market factors
Mobile device ownership on the rise
Media consumption habits changing
Advertising opportunities and challenges in new media
Rising consumer confidence
Tightening advertising regulations
The consumer
TV the most effective advertising channel
Figure 3: How effective consumers find different methods of advertising to be, NI and RoI, August 2014
Approximately half of Irish consumers avoid advertising
Figure 4: Agreement with statements relating to advertising, NI and RoI, August 2014.
In-app advertisements annoy Irish consumers
Figure 5: Agreement with statements relating to advertising, NI and RoI, August 2014
What we think
ISSUES AND INSIGHTS
What are the dominant advertising channels?
The facts
The implications
What role do mobile devices play in advertising?
The facts
The implications
Are consumers overwhelmed by the range of advertising that they are exposed to?
The facts
The implications
What role does trust play in advertising?
The facts
The implications
What role does advertising fulfil for Irish consumers?
The facts
The implications
TREND APPLICATION
Attention Economy
Prove It
Supernanny State
MARKET OVERVIEW
Key points
Smartphone and tablet ownership continues to increase throughout Ireland
Figure 6: Ownership of smartphone and tablet devices, NI, 2013 and 2014
RoI device ownership also increasing strongly
Figure 7: Ownership of smartphone devices and access to tablet devices, RoI, 2013 and 2014
Handheld devices becoming more affordable, driving ownership
Figure 8: Growth in internet access by mobile devices, NI and RoI, 2009-13
Changing media landscape and consumption patterns
Second screening
Print media losing out to devices
Figure 9: Readership of print and digital newspapers, RoI, 2012/13-2013/14
Increasing opportunities in social media and apps
Facebook rolling out geo-targeting advertising
Advertising in these channels not without risk
Figure 10: Agreement with the statement ‘advertising on social networks annoys me’, NI and RoI, 2011-13
Increasing levels of consumer confidence
Figure 11: Consumer confidence, RoI, Q1 2013 – Q2 2014
Figure 12: Consumer confidence, NI, March 2013 –June 2014
More restrictive advertising legislation
Alcohol and gambling promotions continue to come under fire
MARKET SIZE AND FORECAST
Key points
2014 showing signs of growth in the advertising market
Figure 13: Estimated advertising revenues, IoI, NI and RoI, 2009-19
New postcode system will help to boost RoI revenue, while a tax cut would help further
Figure 14: Indexed estimated advertising revenues, NI and RoI, 2009-19
Advertising recovery in NI to lag behind RoI due to government spending cuts
Online spend driving growth
Figure 15: Online advertising spend, RoI, 2009-15
Figure 16: Breakdown of mobile advertising spend, RoI, 2013
Figure 17: Breakdown of desktop advertising spend, RoI, 2013
Advertising budgets to be increasingly diverted to online video
Digital ‘upfronts’ picking up pace
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
COMPANIES AND INNOVATIONS
Key points
Innovations
Harp Lager’s weather-activated outdoor advertising campaign
Swedish subway advert blurs lines between advertisement and environment
The Washington Post adds ‘native ads’ to print
New York animal charity uses Tinder to highlight animals needing homes
Subway invests in branded entertainment
Company profiles
An Post
Carat Ireland
Cawley NEA
Clear Channel Ireland
Irish International
JCDecaux Ireland
LyleBailie International Ltd
MEC Ireland
Ogilvy & Mather
Omnicom Group
Owens DDB
Publicis Dublin
Rothco
WPP
THE CONSUMER – USAGE OF ADVERTISING
Key points
Television advertising is the most effective means of catching Irish consumers’ attention.
Figure 18: How effective consumers find different methods of advertising to be, NI and RoI, August 2014
Eight out of 10 Irish consumers find TV advertising effective
Figure 19: Effectiveness of TV advertising at catching consumers’ attention, NI and RoI, August 2014
Young consumers find TV advertising to be most effective
Figure 20: Consumers who rated TV advertising as ‘very effective’, by age, NI and RoI, August 2014
Irish women find TV advertising more effective than men
Figure 21: Consumers who rated TV advertising as ‘very effective’, by age, NI and RoI, August 2014
One in five consumers pay attention to TV sponsorship and product placement
Figure 22: Consumers who rated sponsorship of TV show/products featured in TV shows to be very effective in catching their attention, by gender and age, NI and RoI, August 2014
Figure 23: Top 10 most viewed TV programmes in the UK, 2013
Irish students more inclined to notice outdoor advertisements
Figure 24: Consumers who rated billboard/outdoor poster advertisements to be very effective in catching their attention by work status, NI and RoI, August 2014
One third of Irish consumers find direct mail to be not effective
Figure 25: How effective consumers believe advertising they receive in the mail to be in catching their attention, NI and RoI, August 2014
Younger consumers more likely to engage with direct mail
Figure 26: Consumers who find advertisements received in the mail to be very effective at catching their attention by age, NI and RoI, August 2014.
High number of consumers removing their names from mailing lists/databases
Irish consumers question the effectiveness of online advertising
Figure 27: The five least effective advertising methods of catching Irish consumers’ attention, NI and RoI, August 2014
Figure 28: How effective consumers believe smartphone/tablet in-app advertising to be in catching their attention, NI and RoI, August 2014
Irish consumers ignore adverts in social networking feeds and online media services
Figure 29: How effective consumers believe advertisements in social network feeds and internet media services to be in catching their attention, NI and RoI, August 2014
THE CONSUMER – INTERACTION WITH ADVERTISING
Key points
Irish consumers use technology to avoid TV advertisements
Figure 30: Agreement with statements relating to advertising, NI and RoI, August 2014
Figure 31: Consumers who agreed with the statement ‘I fast-forward through television adverts when using catch-up/on-demand services’, by gender, age and social class, NI and RoI, August 2014
Second screens competing for viewers’ attention
Figure 32: Consumers who agreed with the statement ‘I use other devices when ad breaks start on TV (eg smartphone/tablet)’ by gender, age and social class, NI and RoI, August 2014
Irish consumers have little love for ‘likes’
Figure 33: Consumers who agreed with the statement ‘I pay more attention to advertisements/promotions 'liked' by my friends on social media’ by gender and age of children in household, NI and RoI, August 2014
Usage of advertising to keep informed has a greater role in RoI
Figure 34: Consumers who agreed with the statement ‘I use advertising to keep me informed where the best special offers are’, by gender, NI and RoI, August 2014
Reliance on advertising for information on best deals reducing
Figure 35: Agreement with the statement ‘I use advertising to keep me informed where the best special offers are’, NI and RoI, October 2012 and August 2014
Humour an effective way to catch consumers’ attention
Figure 36: Consumers who agree with the statement ‘I pay attention to advertising that makes me laugh’ by gender, NI and RoI, August 2014
Consumers sceptical of advertising claims
Figure 37: Consumers who agreed with the statements ‘I find a lot of advertising is misleading’ and ‘Products are never as good as advertisements make them look’, NI and RoI, August 2014
THE CONSUMER – ATTITUDES TOWARDS ADVERTISING
Key points
Irish consumers find smartphone/tablet in-app advertisements annoying
Figure 38: Agreement with statements relating to advertising, NI and RoI, August 2014
Figure 39: Consumers who agreed with the statement ‘Smartphone/tablet in-app adverts annoy me’, by gender, age and social class, NI and RoI, August 2014
Consumers appreciate the need for advertisements to fund online services
Figure 40: Consumers who agreed with the statement ‘I understand that advertising is essential to keep some services free to use (eg Google, Facebook)’, by gender, NI and RoI, August 2014
Irish consumers have environmental concerns surrounding mail
Figure 41: Consumers who agreed with the statements ‘I worry about the effect discarded junk mail has on the environment (ie landfills)’, by gender, NI and RoI, August 2014
Figure 42: Consumers who agreed with the statement ‘I prefer advertising sent through the post to be printed on recyclable materials’ by gender and social class, NI and RoI, August 2014
Growing concern over the effect of advertising targeted towards children
Figure 43: Consumers who agreed with the statement ‘I worry about the effect of advertising targeted towards children’, NI and RoI, May 2012 and August 2014
A fifth of Irish consumers think advertising of certain products should be banned
APPENDIX
NI Toluna Tables
Figure 44: How effective consumers believe TV advertising to be in catching their attention, by demographics, NI, August 2014
Figure 45: How effective consumers believe sponsorship of TV show/products featured in TV shows are at advertising to be in catching their attention, by demographics, NI, August 2014
Figure 46: How effective consumers believe radio advertising to be in catching their attention, by demographics, NI, August 2014
Figure 47: How effective consumers believe cinema advertising to be in catching their attention, by demographics, NI, August 2014
Figure 48: How effective consumers believe newspaper/magazine advertising to be in catching their attention, by demographics, NI, August 2014
Figure 49: How effective consumers believe advertising they receive in the mail to be in catching their attention, by demographics, NI, August 2014
Figure 50: How effective consumers believe smartphone/tablet in-app advertising (eg Candy Crush) to be in catching their attention, by demographics, NI, August 2014
Figure 51: How effective consumers believe advertising on a search engine/web page (eg Google, Yahoo!)/banner advertisements to be in catching their attention, by demographics, NI, August 2014
Figure 52: How effective consumers believe advertising on social network feeds (eg Facebook) to be in catching their attention, by demographics, NI, August 2014
Figure 53: How effective consumers believe sponsorship of a sports team to be in catching their attention, by demographics, NI, August 2014
Figure 54: How effective consumers believe billboards/outdoor posters to be in catching their attention, by demographics, NI, August 2014
Figure 55: How effective consumers believe advertising on the side of buses/taxis to be in catching their attention, by demographics, NI, August 2014
Figure 56: How effective consumers believe advertisements on internet media service (eg YouTube, Spotify) to be in catching their attention, by demographics, NI, August 2014
Figure 57: Agreement with statements relating to advertising, by demographics, NI, August 2014
Figure 58: Agreement with statements relating to advertising, by demographics, NI, August 2014 (continued)
Figure 59: Agreement with statements relating to advertising, by demographics, NI, August 2014 (continued)
Figure 60: Agreement with the statement ‘Smartphone/tablet in-app adverts annoy me’, by demographics, NI, August 2014
Figure 61: Agreement with the statement ‘I change the channel/radio station/my browser tab when advertisements start’, by demographics, NI, August 2014
Figure 62: Agreement with the statement ‘I worry about the effect discarded junk mail has on the environment (ie landfills)’, by demographics, NI, August 2014
Figure 63: Agreement with the statement ‘I have had my name taken off mailing lists/databases’, by demographics, NI, August 2014
Figure 64: Agreement with the statement ‘I prefer to rely on recommendations from blogs/newspaper articles for product information rather than advertising’, by demographics, NI, August 2014
Figure 65: Agreement with the statement ‘I have been encouraged to buy products that have sponsored television programmes’, by demographics, NI, August 2014
Figure 66: Agreement with the statement ‘I find online advertising to be more ‘in your face’ than offline advertising’, by demographics, NI, August 2014
Figure 67: Agreement with the statement ‘Personalised advertising through the post is more likely to catch my attention than standard mail advertising’, by demographics, NI, August 2014
Figure 68: Agreement with the statement ‘I understand that advertising is essential to keep some services free to use (eg Google, Facebook)’, by demographics, NI, August 2014
Figure 69: Agreement with the statement ‘I prefer advertising sent through the post to be printed on recyclable materials’, by demographics, NI, August 2014
Figure 70: Agreement with the statement ‘I use other devices when ad breaks start on TV (eg smartphone/tablet)’, by demographics, NI, August 2014
Figure 71: Agreement with the statement ‘I enjoy outdoor advertising that you can interact with using my smartphone/tablet (eg QR codes)’, by demographics, NI, August 2014
RoI Toluna Tables
Figure 72: How effective consumers believe TV advertising to be in catching their attention, by demographics, RoI, August 2014
Figure 73: How effective consumers believe sponsorship of TV show/products featured in TV shows are at advertising to be in catching their attention, by demographics, RoI, August 2014
Figure 74: How effective consumers believe radio advertising to be in catching their attention, by demographics, RoI, August 2014
Figure 75: How effective consumers believe cinema advertising to be in catching their attention, by demographics, RoI, August 2014
Figure 76: How effective consumers believe newspaper/magazine advertising to be in catching their attention, by demographics, RoI, August 2014
Figure 77: How effective consumers believe advertising they receive in the mail to be in catching their attention, by demographics, RoI, August 2014
Figure 78: How effective consumers believe smartphone/tablet In-app advertising (eg candy crush) to be in catching their attention, by demographics, RoI, August 2014
Figure 79: How effective consumers believe advertising on a search engine/web page (eg Google, Yahoo!)/banner advertisements to be in catching their attention, by demographics, RoI, August 2014
Figure 80: How effective consumers believe advertising on social network feeds (eg Facebook) to be in catching their attention, by demographics, RoI, August 2014
Figure 81: How effective consumers believe sponsorship of a sports team to be in catching their attention, by demographics, RoI, August 2014
Figure 82: How effective consumers believe billboards/outdoor posters to be in catching their attention, by demographics, RoI, August 2014
Figure 83: How effective consumers believe advertising on the side of buses/taxis to be in catching their attention, by demographics, RoI, August 2014
Figure 84: How effective consumers believe advertisements on internet media service (eg YouTube, Spotify) to be in catching their attention, by demographics, RoI, August 2014
Figure 85: Agreement with statements relating to advertising, by demographics, RoI, August 2014
Figure 86: Agreement with statements relating to advertising, by demographics, RoI, August 2014 (continued)
Figure 87: Agreement with statements relating to advertising, by demographics, RoI, August 2014 (continued)
Figure 88: Agreement with the statement ‘Smartphone/tablet In-app adverts annoy me’, by demographics, RoI, August 2014
Figure 89: Agreement with the statement ‘I change the channel/radio station/my browser tab when advertisements start’, by demographics, RoI, August 2014
Figure 90: Agreement with the statement ‘I worry about the effect discarded junk mail has on the environment (ie landfills)’, by demographics, RoI, August 2014
Figure 91: Agreement with the statement ‘I have had my name taken off mailing lists/databases’, by demographics, RoI, August 2014
Figure 92: Agreement with the statement ‘I prefer to rely on recommendations from blogs/newspaper articles for product information rather than advertising’, by demographics, RoI, August 2014
Figure 93: Agreement with the statement ‘I have been encouraged to buy products that have sponsored television programmes’, by demographics, RoI, August 2014
Figure 94: Agreement with the statement ‘I find online advertising to be more ‘in your face’ than offline advertising’, by demographics, RoI, August 2014
Figure 95: Agreement with the statement ‘Personalised advertising through the post is more likely to catch my attention than standard mail advertising’, by demographics, RoI, August 2014
Figure 96: Agreement with the statement ‘I understand that advertising is essential to keep some services free to use (eg Google, Facebook)’, by demographics, RoI, August 2014
Figure 97: Agreement with the statement ‘I prefer advertising sent through the post to be printed on recyclable materials’, by demographics, RoI, August 2014
Figure 98: Agreement with the statement ‘I use other devices when ad breaks start on TV (eg smartphone/tablet)’, by demographics, RoI, August 2014
Figure 99: Agreement with the statement ‘I enjoy outdoor advertising that you can interact with using my smartphone/tablet (eg QR codes)’, by demographics, RoI, August 2014