Untitled - Business Plus Online

OUTLOOK 13

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

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?
2
INTRODUCTION
ADVERTISING INVESTMENT PER CAPITA
IN THE REPUBLIC OF IRELAND IS 75%
GREATER THAN NORTHERN IRELAND

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

4
THE
CONSUMER
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?
“IT’S NOT THAT PARADISE STARTS TOMORROW
IT’S NOT HEAVEN ON EARTH ALL OF A SUDDEN
IT’S A GOOD FIRST STEP”

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

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

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

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.
8
NEWS
MEDIA
INTEREST IN NEWS IS SOLID
READERS ARE MERELY CHOOSING DIFFERENT
METHODS OF CONSUMPTION

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

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

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

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

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

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.
14
OUT OF
HOME
THE NUMBER OF DIGITAL SCREENS IN ROI
WILL GROW TO 1,400 IN 2013

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

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

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

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.

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

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.
20
DIRECT
MARKETING
DIRECT MARKETING NOW ACCOUNTS FOR A
THIRD OF MARKETING BUDGETS

01 INTERACTION WITH DIGITAL
Consumers are changing how they consume
media, and by the end of 2013 circa 40% of all
time spent with media will be through digital
channels.
Traditionally, direct marketing campaigns have
been integrated with mainstream media such
as TV and Print, but things are changing and the
direct mail sector needs to adapt to this
consumer shift.
IMPLICATION
Marketers need to think about the inherent
opportunities that exist through the integration
of direct mail with digital channel activity.
Research has shown that 58% of people are
more likely to click on a search link for a
company if they’ve received something in the
post. More importantly, 59% see additional
items they would like to buy online when they
have a physical brochure or product guide in
their hand.
There is, therefore, a necessity to integrate
search activity with direct mail in order to
catch all stimulated demand. The
synergy achieved by the precise
integration of these activities
will significantly increase
response.
% OF ADULTS WHO FIND
DIRECT MAIL RELEVANT TO THEM
02 LOCAL MARKETING 03 RELEVANCE
Constricted budgets have reduced the ability of
some brands to communicate on a national
basis. Local is now becoming the lifeblood of
small businesses in particular who appreciate,
more than most, that the daily lives of their
customers are influenced by what exists
directly around where they live.
The lack of a postcode system has made
precise local targeting more difficult, but new
marketing tools have emerged to overcome this
and enable brands to tap this local well of
potential business.
IMPLICATION
A recent product launch from An Post allows
companies to take advantage of improved
targeting techniques by focusing on streets and
areas surrounding a business to allow it to
tightly target specific areas of interest. This
enables marketers to target different locations
with tailored offers, without overextending
themselves financially.
Companies can also use this facility to improve
their website traffic, from a specific geographic
location, by using postcards to incentive
local consumers to go online.
Advertising is pervasive; at every contact point
throughout the day we are being hit with
communications. Seldom does the marketer
fully understand whether you are a 55 year old
man who loves golf or a 22 year old female art
student. As a result, ad-avoidance is
increasing. The same holds true in the direct
marketing industry, which has to contend with
an increasingly cluttered and unaddressed
channel. On the other hand, personalised direct
mail continues to be valued, with 31% of
consumers stating that it is an important
channel for encouraging purchase, as compared
with 20% in UK. In fact, 18-25 year olds are one
of the most responsive audiences with 74% of
them saying that they enjoy receiving post.
IMPLICATION
The key to success in direct marketing is
getting targeted; gone are the days of blanket
bombing. Brands should seek to find out more
about their customers than merely the name
and address. What are their likes; what are
their pet hates; tag their behaviours and create
a profile of your audience that allows for more
targeted and relevant communications. By
spending money on your valuable customers,
tailoring your creative and reduce wastage you
will drive response rates significantly. Consider
using different senses to stimulate a
connection. Add a scent or a sound in order to
generate a buzz and drive response.
49%
2009
59%
2010
58%
2011
Source: An Post
65%
58% OF PEOPLE ARE MORE LIKELY TO CLICK ON
2012
A SEARCH LINK FOR A COMPANY IF THEY’VE
RECEIVED SOMETHING IN THE POST
21

FOR MORE INFORMATION PLEASE CONTACT:
ALAN COX
TEL: +353 1 649 6458
WEB: WWW.COREMEDIA.IE
EMAIL: ALAN.COX@COREMEDIA.IE