The advertising industry in Ireland attracts billions in revenue from almost every sector each year.
From companies launching their latest product lines to online entertainment websites, nearly every company tries to get their slice of the consumer pie by funnelling vast sums of money into ads.
Despite the adoption of modern technologies, specifically streaming services, one way to advertise has stood the test of time: radio advertising.
Although radio globally is suffering somewhat from a decline in listeners due to competition brought on by Spotify, Apple Music, and other digital platforms, it remains a prevalent form of entertainment. This is particularly true in Ireland, where listeners are increasing rather than decreasing.
The latest JNLR Ipsos report, which studies radio listenership in the country, revealed that more people listened to the radio in Ireland during 2023 than in 2022. In contrast to 2022, which found 193,000 fewer people listening to the radio, 2023 marked a time when approximately 91% of Irish adults listened weekly.
This range of listeners has helped Irish radio stations thrive, growing the industry to a revenue of €164 million in 2023—4% higher than the previous year. Almost all of this revenue is generated through advertising by companies and brands looking to reach the ears of millions of listeners.
Types of Radio Advertising in Ireland
There are three main types of radio advertising: spot advertising, branded content advertising, and digital audio advertising. Below is a brief description of each.
Spot Advertising
As its name implies, spot advertising is when a company (or advertiser) purchases a ‘spot’ on a radio station. This spot is a specific section of time limited to a number of seconds (or minutes) and is scheduled to occur at a particular time of the day or radio show.
Spot advertising is, traditionally, the most common and profitable form of radio advertising. With multiple advertisers vying for the best spots in prime-time positions, these few seconds can generate impressive sums of money for broadcasters.
Branded Content Advertising
Advertising on the radio via branded content can sometimes be more costly for companies and require more effort. However, these expenses are usually worth it, as this form of advertising can build a stronger connection and cement an advertising objective in listeners’ minds.
Branded content advertisements commonly consist of a sponsored message made directly by the radio host. Alternatively, they may appear as a specific segment of a radio show sponsored by a particular company, which is mentioned by name repeatedly throughout the show.
Digital Audio Advertising
Digital audio advertising is the newest form of radio advertising and is experiencing the most significant growth worldwide. This form of advertising works in tandem with streaming or download services and inserts advertising into audio streams accessed via various channels.
These channels include radio shows streamed via the Internet, on-demand music services, and, in some instances, podcasts.
According to Radio Centre, a body founded by the Irish Raidió Teilifís Éireann (also known as public service broadcaster RTE), almost 24% of weekly audio is nowadays consumed through digital channels. As such, tapping into these advertising channels can help companies reach more people more effectively.
Popularity of Advertising Types
As mentioned above, spot advertising is the most popular and traditional form of radio advertising. In 2023, €127.2 million (or 77.5%) of total radio advertising revenue came from spots sold to companies seeking to establish their brand.
Despite being the most common type of advertising, spot advertising revenue was on a downward trend, with agency earnings dropping consecutively each quarter since the start of 2023. That is, until the final quarter, when revenue spiked significantly, leading to an overall 1% growth in this type of advertising compared to 2022.
Following spot adverts, branded content advertising generated the most revenue, €29.5 million. Accounting for 18% of total income, this type of ad saw decent growth across 2023, increasing by 9% compared to the year before.
Unlike spot ads, this surge in growth didn’t occur during the last quarter of the year—driven by holiday spending. Instead, branded content grew steadily across all four quarters and, surprisingly, generated slightly less through agencies during the last quarter of 2022.
Despite only generating 4.5% (€7.2 million) of total ad revenue, digital audio revenue saw the most significant growth during 2023. Up 33% from 2022, many expect this type of advertising to continue to grow in the future, possibly becoming almost as popular as spot adverts.
Spending by Sector
With many sectors trying to get prime advertising positions over the airwaves, some are willing to spend more than others. Sectors like gambling are restricted due to local laws, meaning that advertising Irish casinos ranked by casinos.com wouldn’t reach many people. This, in turn, means that the gambling sector spends little on radio advertising.
In contrast, industries without significant advertising limitations, such as car manufacturers, are big spenders in radio advertising because they have seen the results of previous ad campaigns run via local radio stations.
Alongside car manufacturers, the largest spenders by sector include travel and transport providers, pharmaceutical companies, and business-to-business providers. These industries generated millions in ad revenue over 2022 and into 2023.
As a special mention, it should be noted that advertising by one entity declined significantly in 2023—the Irish government. This has been attributed to increased spending in other areas, specifically social media advertising, where the government spent €1.1 million in 2023.
Future Revenues
Forecasts outlined in late 2023 predicted that radio advertising revenue in Ireland is likely to reach €178 million by 2028. However, this forecast was published before the close of 2023 and predicted that 2024 revenue would reach just €157 million.
Considering that revenue in 2023 exceeded the 2024 prediction, producing revenue of €164 million, it is likely that the sector will surpass €178 million in the next four years. Should this hold, radio broadcasters can look forward to extended periods of flowing revenue provided by companies looking to get their 15 seconds of fame on the radio.
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This story first appeared on Radio Today