As it’s St Patrick’s Day tomorrow, we’ll take a look at what’s happening in Ireland. Although the Irish economy is still in recovering from a series of crippling bank bailouts, the video advertising industry is one part of the economy that is booming according to the Irish Times. Like everywhere else, the Irish market is suffering from a shortage of supply and CPMs are soaring.
TV3 is an Irish equivalent of the UK’s ITV (who own a large stake in the company) and is the leading indigenous station after Ireland’s state broadcaster, RTE. TV3’s director of online, Stephen Grant, said he:
…believes the value of online video advertising will double this year from an estimated €4 million last year. “It’s still an exception to have an online ad to accompany the TV campaign, but I’d like that to be the rule,” says Grant.
TV3’s 3player, the new version of its catch-up service launched in October, attracted more than one million plays per month in January and February, up 40 per cent on the previous year, he says. “We are delivering almost four million video ads per month and growing as we seek to add inventory in this increasing market. But even at that we believe there is greater growth in demand than supply, leading to upward pressure on prices,” says Grant.
Interestingly, the broadcaster hasn’t seen any cannibalisation of its television advertising sales whatsoever:
“We see it as add-on viewership,” he says. Grant cites the medium’s ability to offer both the brand-building potential of a traditional television campaign with “click here to learn more” calls-to-action in display advertisements to the side of the video stream.
Dermot Hanrahan, CEO of Electric Media, Ireland’s largest sales house, said he thinks the high CPMs will ‘encourage traditionally print-based media outlets to boost their video activities’. You can read the full article here.