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Introduction All Roads Lead to Education 2

Creative Addressing Climate Change 4

Strategy What to Prioritise for Effectiveness in 2020? 6

Effectiveness Creating an Effectiveness and Measurement Culture 8

Research Humanising Data 10

EmployerBranding The Immovable Object Meets the Unstoppable Force 12

Data The Slow Death of the Third-Party Cookie 14

Sponsorship When Precision Fuels Passion 16

Video The Streaming War Begins in 2020 18

Video What is Addressable Advertising? 20

Search Mobile Search is the Key Battle Ground 22

Social Another Rollercoaster Year in Social Media 24

Audio New Era, New Challenges 26

NewsMedia The Value of a Free and Independent Press 28

Out-of-Home A Tale of Two Billboards 30

DirectMarketing People Are Looking Forward to Receiving Post Again 32

InvestmentForecasts Total Market 34

Video 36

Online 37

Audio 38

News Media 39

Out-of-Home 40

Sponsorship 41

OUTLOOK20

1

2

Inlastyear’sOutlook,weaddressedthemarketingindustry’scredibilityproblem.Wereferencedthefactthat73%ofglobalCEOsbelievethatmarketersdon’thavetheabilitytogenerategrowth.1

Inthemeantime(inJune2019),theIPAandtheFinancialTimespublishedaglobalreportcalled‘TheBoard-BrandRift,’whichrevealsthatoverhalfofbusinessleaders,including30%ofsenior-levelmarketers,ratetheirknowledgeofbrand-buildingasaveragetoverypoor.Thereportconcludedthatthereisaworryinglackofconfidenceinbrandmanagement,bothwithinandbeyondthemarketingdepartment.Itwentontosay,‘Theskillofbrand-building,afundamentalcreatorofvalue,isdeclining.’2

ThisishardlyasurprisegiventhefindingsofasurveycommissionedbyMarketingWeeklastyear,whichfoundthatmorethanhalfofmarketersintheUK(54%)saytheyhavenotstudiedamarketing-relatedacademicorprofessionalqualificationofanykind.Just26%haveamarketingundergraduatedegreeastheirhighestqualification,and16%haveamarketingmaster’sdegree,diplomaordoctorate.Ofthosewhostudiedforamarketingdegree,just32%founditveryuseful.3Thesituationissimilarinthiscountry,and,asreportedlastyear,only13%ofmarketingprofessionalsintheRepublicofIrelandhaveastrongcommitmenttocontinuingprofessionaldevelopment.4

Thisisacriticalproblem.Theinconsistentstandardofmarketingeducationacrossagencyandclientdisciplinesandthelackofarecognisedprofessionalqualificationareholdingtheindustryback.Theevidencekeepspilingup,butfewpractitionersseemtobeengaged.

Meanwhile,marketinginvestmentisoftendeprioritisedduetounconvincingbusinesscasespreparedbyagenciesandmarketingdepartments.Furthermore,executiveopinionseemstobethepre-eminentfactorindecision-makingratherthanscientificevidence,andtrustinouroccupationcontinuestolagbehindotherprofessionsbecausewedonotdemonstratemasteryofmarketingscience.Allroadsleadtoeducation.

Alan Cox CEO CORE

LEAD TOEDUCAT ONALLROADS

INTRODUCTION

COMMITMENT REQUIRED

Anindustry-widecommitmenttodevelopaseriesofprofessionalqualificationsacrossallaspectsofthemarketingprofessionisrequired.

Standardsneedtobesetforpractitionersinanalytics,creative,directmarketing,digitalmarketing,ecommerce,

marketingmanagement,mediaplanningandbuying,PR,research,sponsorshipandstrategy.

Overtime,suchacommitmentwouldbuildanewgenerationofcomprehensivelyeducated,trainedandtrustedprofessionals.

Figure1belowsummarisesaproposedskillsphilosophythathasrelevanceforalldisciplines.

Itgoesbeyondtheknowledgerequiredtodoaspecificjob,andrequiresmoreofprofessionalsthantheirexpertiseinachosenarea.

Itisessentialthatallpractitionersalsohaveagroundinginthebusinessofmarketingandadeepunderstandingofthepivotalrolecreativityplaysinbuildingbusinesses.

1.FournaiseGroup,20112.TheBoard-BrandRiftIPA&FT,2019

3.MarketingWeekCareerandSalarySurvey,2019

4.CoreResearchMarketingProfessionalsSurvey,2018

Regrettably,manystakeholdersfeelthatthereis‘nothingtoseehere’–theybelievethatthereisnoeducationdeficitandthat,inanyevent,itshouldbetheroleofemployerstotrainpractitioners–notuniversities.Thisindifferenceexplainswhytheproblemexistsinthefirstplace.

Also,thedebateregardingtheroleofemployersintrainingisimmaterial,becauseveryfewcompanieshaveacrediblecommitmenttotraininganyway,anditisimpossibleformanybusinessestoaffordthecostofprovidingthekindofcomprehensivetutoringrequired.

Isn’titstrangethatthisattitudetotraininganddevelopmentiscommonplaceinanindustrythatinvestsinexcessof€1billioneachyearinmarketingcommunications?Imagineouroutrageifaccountants,architects,dentalhygienists,electricians,engineers,lawyers,pharmacistsandteachershadthesameattitude.Wouldyouallowanuntrainedarchitecttodesignyourhome?

STEERING GROUP IN PLACE

Weneedtoaddressthissituationwitharenewedsenseofpurposeanddevelopalong-termstrategytofixtheproblem.Tostartadialogueontheissue,weestablishedasteeringgroupofmarketers,agencypractitionersandmediaownerslastyeartodiscussanddebatetheproblem.Therewasgeneralagreementthatactionisrequired.

Variousideaswerediscussedincludingthepossibilityofestablishinganewschoolofmarketing,butthisdidnotgetthegroup’sbacking.Instead,thecommitteewasinfavourofanapproachthataddresseslearninganddevelopmentrequirementsateachcareerstage-junior,mid-levelandsenior-withthefollowingthree-pointstrategy:

1.Establishanentitythatwouldprovideaccreditationforexistingundergraduateandpostgraduatedegreeprogrammes

2.Establisharequirementforgraduatestomaintainanannualcommitmenttocontinuingprofessionaldevelopmenttomaintaintheirprofessionalqualification

3.Establishacharteredpractitionerprogrammeforseniormarketers

ThesteeringgroupalsospokeoftheimportantrolethattheMarketingInstituteplaysineducationandtheexcellentworkthathasbeendonewiththeMarketerPathwaysproject.Thenextstep,therefore,wastopresentthethree-pointproposaltotheBoardoftheMarketingInstitute;thishappenedinNovember.

Atthismeeting,IproposedthattheMarketingInstituteshouldbetheleadstakeholderinthisendeavourandthatanewentityshouldbeestablished(undertheauspicesoftheInstitute)tomakeithappen.ThiswouldbetruetotheInstitute’spurpose,andtheorganisationhasthecredentialsandreachtomakeasuccessofit.TheBoardsaidtheywouldconsidertherecommendation.

So,that’swherethingsstandfornow.Thereisnoquickfix.Likeeverythingelseinlifethat’sworthdoing,itwilltakealong-termstrategytomakemeaningfulchange,andsuccesswillbemeasuredindecades.

Whatwillthatsuccesslooklike?Ultimately,thegoalofthisinitiativeistobuilda

professionthatisrespected,admiredandrecognisedforitscreativityandabilitytodriveprofitforbusiness.Ihopeyouagreethatissomethingworthaimingfor.Inordertokeepthingsmoving,wewillreconvenethesteeringgroupinQ2todiscussprogress.

Inthemeantime,let’sgetbacktotheotherburningissuesof2020thataresetoutinthisreport.IhopeyoufindOutlook20thought-provokinganduseful.ItcoverstheimportantmattersthatweforeseefromtheperspectiveofourninePracticesinCore:Creative,Data,Investment,Learning,Media,Recruitment,Research,SponsorshipandStrategy.

Ifyouwouldliketodiscussanyofthecontent,pleasefeelfreetocallmeon+35316496458.

Bestwishesfortheyearahead,

WOULD YOU ALLOW AN UNTRAINED ARCHITECT TO DESIGN YOUR HOME?

FIGURE 1 - DRAFT SKILLS PHILOSOPHY

•Obsessedwithgettingthebasicsright

•Knowtheimportantcasehistoriesoftheindustry

•Understandthefullspectrumofskillsandwhentheyshouldbeemployed

•Trueexpertsintheirareaofspecialism

•CommittedtoCPD

•Ambitious,strategic,independentthinkerswhochallengethestatusquo

•Alwayscurious,alwayswantingtoimprove

•Deepunderstandingofthevalueandpowerofcreativity

•Knowhowtoencouragecollaboration

•Knowhowmarketingdrivesprofitablegrowth

•Strongunderstandingofanalyticsandhowtousedatatoimproveperformanceandunlockgrowth

•Canbuildrobustscientificbusinesscasesformarketinginvestmentthatclearlydemonstratetheircommercialcontribution

•Strongbusinessknowledge•Fullunderstandingofthevaluechainandmarketing’srolewithinit

•Knowhowmarketingalignsstrategicallywiththebusinessagenda

•Performance-oriented

1. CRE

ATIVE 2.EXPERT

4. BUS. SAVVY 3. FIN

ANCIA

L

3

Theproblemconcerningclimatechangetodayaffectsyou,meandeveryoneandeverythingthatlivesandbreathesinthisworld.

Thetruthofthematteristhatthisproblemisreallyoldnews(notfakenews,Mr.Trump).

Speakingofpolitics,thetopicofclimatechangewas,ironically,jump-startedbysomeoneelsewhoonceworkedat1600PennsylvaniaAvenue.

IrefertoformerUSVice-PresidentAlGore.Sinceleavingoffice,Mr.Gorehas,onmanyoccasions,warnedtheworldofitsfateasaresultofcarbonemissions.Goreevenproducedafilm,AnInconvenientTruth,tomakehispoint.

Hisresearchclearlyshowedthattherewasanincreasing‘planetaryemergency’duetoglobalwarming.Actingasthecommoncitizen(andnotthepolitician),Mr.Gore’sargumentsillustratehowclimatechangeisnowapersonalissueforeveryonetoday.

Thiswashisgoal–tovoicehisconcernandmotivateallofhumanitytoidentifyandimplementsolutionstotheclimatecrisis.

Fast-forwardto2019,andweseemoreplasticwastedestroyingourbeautiful,blueoceans,killingbirdandmarinelife,litteringourbeaches,andnowenteringourfoodchain.

CHANGE THE WORLD FOR THE BETTER WITH A SINGLE VOICE THAT’S THE POWER OF ADVERTISING

Liam Wielopolski Executive Creative Director CORE

ADDRESSING CLIMATE CHANGE

CREATIVE

4

MahatmaGhandioncesaid,‘Youmustnotlosefaithinhumanity.Humanityisanocean;ifafewdropsoftheoceanaredirty,theoceandoesnotbecomedirty.’

IfonlyGhandiwerealivetodaytomakeanotherprofoundstatementthatwouldinspiretheentireworldtopickupthepaceonsolvingclimatechange.

PerhapsGhandi’snoblethinkinghasbeenreincarnatedinthesmallbutconfidentvoiceofa15-year-oldactivist,GretaThunberg,whotooktheworldbystorminSeptember2019attheUNCOP24climatetalks.

Herstraightforwardstyleofspeakingwasdirectedatworldleadersandassemblies,demandingimmediateaction.EvenherfieryglanceatPresidentTrumpwhenheenteredtheroommanagedtocutthroughthealways-presentpoliticalnonsense.Thetruthofthematteristhatworldleadersjusttalkthetalk.Theydon’tunderstandtheideaofactionsspeakinglouderthanwords.

ApartfromaSwedishteenager,whoelsecanputpressureongovernmentstodevelopbettersolutions?

Whynotpassthebatontothecreativeworldofadvertising?Ifagreatadcanraisetheprofile(andfortunes)ofaproductorabrand,whycan’titdothesameforclimatecontrol?

PICKING UP THE BATON

Advertising,knownforcommunicatingstrong,powerfulandeffectivemessagestotheworld,canachieveresults.Advertisingcantapintothemindsofhumanityinthemostproactiveandintriguingwayssoanobjectivecanbeachieved.That’stheartofAdvertising101.

Whenitcomestothefutureofourplanet,weshouldnotunderestimatethepowerofgivingvoicetothemessagethatweallneedtotakeourresponsibilitiesmoreseriouslyduringtheseuncertaintimes.

InSeptember2019,adlandintheUKdidjustthis.Itmadeitsvoiceheardloudandclearwithitsenvironmentalstand,‘CreateandStrike.’

Insupportofclimateprotest,acoalitionof150agenciesencourageditsmemberstowalkoutoftheirofficesandontothestreetsincentral

London,wheretheystoodshouldertoshoulderwiththeyouth-ledclimatestrikesthatmobilisedanestimatedfourmillionpeopledemandingtougheractionfromgovernmentstocombatclimatechange.

Thatday’smissionwastoprovidetheopportunityfortheirvoicestobeheard–andtoshowhowcreativitycancreatechange.

Fromthismovement,moreandmoreblue-chipcompanies,likePatagonia,LushCosmeticsandBen&Jerry’s,followedsuitbyclosingtheirdoorstojointhecause.

Themessagetakenawayfromthisactionwasthatit’snotbusinessasusualwhentheplanetischokingtodeath.

Lookingatthebiggerpicture,advertisinghasallowedmarketersandtheirbrandstobuildloyalrelationshipswiththepeopleoftheworld.

Sinceclimatechangeaffectstheworld,itisimportantthat,ratherthansolelyfocusingonthebottomline,marketersshowandactwithgreaterempathyandjointheefforttoaddresstheproblemofclimatechange.

Thepointwe’remakingisthatdevelopingandlaunchingasmallcampaign,whichencouragespeopletogiveupdrinkingfromplasticstrawsisn’tenoughanymore.Weexpectmorefromourmarketingcompanies.

SO, DID THIS MOVEMENT ACHIEVE ANYTHING?

Yes;forone,itshowedthatadlandhasthecouragetostandupandmakeapoint.

Italsoillustratedhowsuchanunprecedentedshowofsolidaritybyanindustryfortheglobalclimateemergencycanmakenoise.

Theonlyquestionnowishowwillitkeepthemomentumgoing?

A GLOBAL RESPONSE

Weneedaglobalresponsetothiscrisis.Weneedtouseglobalresourcestojointhisculturalmovementsothatgovernmentswillgettherealpictureofjusthowdeeplyclimatechangeisgoingtoaffectourfuture.

Themarketersoftheworldneedtoprovidetheirskillsassomeoftheseresources.Therelationshipsbetweenbrandsandpeoplemustcontinuetogrowcloserandbecomemorepersonalinordertosecureabrighterandsaferfuture.

Thepowerofadvertisingcanbeusedtobetterunifyandarticulatewaystocomeupwithsolutionstotheclimatecrisis.

SimilartoAlGoreandGretaThunberg’sactionsandwords,thevoiceoftheadindustrycan’tbesilenceduntilclimatechangeiscomprehensivelyaddressed.

IT IS IMPORTANT THAT MARKETERS SHOW GREATER EMPATHY.

AR specialist Unit9 created an augmented-reality effect that allowed strikers to use their smartphones to overlay London’s Trafalgar Square, where the strike congregated, with apocalyptic imagery.

5

Shane Doyle Group Strategy Director CORESTRATEGY

WHATTO

FOREFFECTIVENESSIN2020?

PRIORITISE

In2020,IAPI,therepresentativebodyforadvertisingagenciesinIrelandisjoiningtheEffienetworkandreplacingtheexistingadvertisingeffectivenessawards(theADFXawards)withtheEffieAwardsinIreland.

Iftheyweren’talreadyatoppriority,thischangeoverineffectivenessawardspromptsustothinkaboutthedriversofeffectiveness.In2019,agroupofcollaborators,ledbyMarkRitson,analysed5,900EffieAwardsentriesinordertolearnwhatthedriverswere.1

Whiletenarelistedintheiranalysis,webelievethattherearethreeofparamountimportanceformarketerstoprioritiseandgetrightin2020.Thesearecoveredoverleaf.

STRATEGY

6

MARKETERS NEED TO AUDIT THEIR BRAND CODES, AND DISCARD THOSE THAT ARE CONFUSING OR GENERIC TO THE CATEGORY.

1. DEVELOP AND LEVERAGE BRAND CODES

Thefirstofthesedriversiscreatingandleveragingclearbrandcodes.Brandidentitiesarenotjustmadeupofaname,alogoandaproduct;theyareacollectionofcodesbuiltovertimetohelprecognition.Shapes,patterns,icons,packagingandfluentdevices(charactersorelementsthatrecurinabrand’sadvertisingtospeedupbrandrecognition)allpowerfullyevokeabrand.

Ritson’sworkputsbrandcodesasthethirdleadingdriverofeffectivenessafterbrandsizeandcreativity.Theworkdemonstratesthatbrandstypicallyunderusethesecodes,andanalysisofEffiewinnersshowsthatthosewhoco-ordinateandeffectivelyleveragetheircodesbenefitgreatly.

Themedialandscapeisbecomingmoreandmorecluttered.By2021,adultsinIrelandwillseejustunder3,000advertisementsaweek.2

Inthisenvironment,speedofbrandrecognitionandsaliencearecritical.Marketersandtheiragenciesneedtoaudittheircodes,discardthosethatcauseconfusion,oraregenerictothecategory,andheavilyleveragethosethatdeliverrecognitionandstandout.

Brandsinmorerestrictedmediaenvironments(suchascategoriesgovernedbyawatershedrule)needtoinvestinbuildingfluentdevicesthatallowthemtoensuresalienceintheremainingcommunicationscanvastheyhave.

2. DEPLOY A TWO-SPEED COMMUNICATIONS SYSTEM

Thedebatesaroundmassmarketingversustargetedcommunicationandlong-termversusshort-termapproachesarewelldocumented.TheEhrenberg-BassInstitutehasmadeitscasefor‘alwayson’massmarketing.

Extensiveresearchalsoexistsontheneedtostrikeacarefulbalancebetweenlong-termandshort-termcampaigns.

Thereisaneedtobuildyourbrandoverthelongertermandthereisaneedtoconvertpeopleinbuyingsituationswithmoretacticallyorientatedaction.

Bothareneeded,butwhatismore,bothareneededinco-ordination.Ritsonreferstoitasatwo-speedbrandplan.

However,thissuggeststhatthetwostreamsrunincertainlanesanddon’tcrossover.Ourbeliefisthatbothstrandseffectively‘charge’eachotherinacontinuouscycle.Thetacticalstream’seffectivenessinconversionisheightenedbecauseoftheamplifyingeffectofthelonger-termbrand-buildingwork.

Equally,theshort-termactivationallowsthebrandtocontinuouslybuildsalience,evenwhenlargebrand-buildingcampaignsarenotlive.

In2020,brandsnotonlyneedtothinkabouttheratioofthebrandactivitytotacticalactivity,theyalsoneedtolookathowthesetwosystemsinteractandfeedeachothersothatbothareoptimised.Gettingtheinteractionofthesetwospeedsrightisattheheartoftoday’seffectivemarketing.Attheveryleast,thesetwosystemsshouldnotbeinconflict,andatbestthetacticalactivityshouldconvertlonger-termbrandequitywithouterodingit.

3. DIAGNOSE WITH RIGOUR AND SPECIFICITY

Ourthirdpriorityistheonewhichreallycomesfirstchronologically,anditconcernsproperdiagnosisbeforeaction.

Withamigrationoverthelastdecadetodigitalchannels,wehavereachedapointinmarketingwheremanybrandscanconsiderthemselves‘informationrich’.Thedangeristhatmanyofthemarealso‘understandingpoor’.

Short-termmetricsleadtoshort-termthinkingincommunicationsandthemeasurementofimpact.However,anotherpotentialpitfallforbrandsisthefailuretoconductproperproblemdiagnosis.

Marketingisatooltogrowyourbusiness,andmarketingstrategyshouldsupporttheoverallbusinessstrategy.Thetwoareinterdependent.Pivotaltoasuccessfulmarketingplanisthecorrectdiagnosisofaproblemthatthebusinessiscurrentlyexperiencing;onceidentified,marketingeffortscanthenworktoresolvetheproblem.

Ritsonetal’sanalysisofEffieentriesconcludedthatrelativelyfewcampaignsoutlinedtheirtruestrategicobjectives.Theaimsweremorelikelytobeoutlinedintacticalgoals.WhileRitsondoesnotconcludethattherewerenostrategicgoals,thefactthattheyarenotproperlyarticulatedandplacedfrontandcentreisworrying,butpossiblynotsurprising.

Webelieveininvestingasmuchtimeandeffortaspossibleindiagnosingthecentralissuethatthebusinessexperiencessothatmarketingcanoptimiseitsimpact.Thismayseemobvious,butitisnotagiven.

Puttingthoughtintotheheartofaproblemandmostimportantly,puttingnumbersarounditsexistenceanditseffectaresomeofthemostfruitfulusesofamarketer’stime.Thislevelofanalysisallowsgoalstobeclearandwell-grounded,effortstobeco-ordinatedaroundthetruebattle,timetobesavedincreativedevelopmentthroughclarityandmostofall,itallowssuccesstobegenuinelymeasured.

Webelievethatfocussingonthesethreedriversofeffectivenesswillhelpustogainwinsforourclientsin2020.

7

1.TheTopTenDriversofMarketingEffectivenessfromtheEffieAwards–andBeyond,WARC,2019

2.AdDynamix,Neilsen,Comscore,TGI,CoreData,August2018

Ronan Brady Managing Director COREDATA

Businessleadersknowinstinctivelythattoomuchfocusontheshorttermisbadforbusiness.A2019studyintomanagementboardsfoundthattwothirdsofseniorleadersagreedthatabetterbalancebetweenshort-andlong-termmarketingobjectiveswilldeliveragreaterreturn.1

However,thesamestudyalsofoundthatbusinesseshadalackofbeliefinhowtheymeasuredbrandhealthandwerealsofocusingonthewrongmetrics.

Itfoundthatseniorleaderswerefixatedonshort-termmeasuresanddonotinvestinthecreationandmaintenanceofbrandsormeasurebrandstrengthonaconsistentbasis.

Aswemoveinto2020,marketingismoreaccountablethanever.However,theincreaseduseofzero-basedbudgetingandtheabundanceofmeasurementsystemsbeliealong-recognisedtruth:thereisatensionbetweenaccountabilityandeffectiveness.

Tomakemarketingmoreaccountable,short-termmetricsareoftenerroneouslyprioritisedoverlong-termmetrics;BinetandFieldarguethatmarketersareoftenguiltyofbeing‘seentobeeffective’ratherthanfocusingonbeingtrulyeffective,whichcaninadvertentlyleadtothedestructionofshareholdervalue.2

CREATING AN EFFECTIVENESS ANDMEASUREMENT

CULTURE

EFFECTIVENESS

8

Focussingonshort-termsuccessisasymptomofanunderlyingcommonconditioninorganisations,namely,theabsenceofan‘effectivenessculture.’

A2018studybytheIPAfoundthathalfofmarketingteamsratedtheir‘effectivenessculture’atsixoutoftenorless.3Moreworryingly,therewasastrongshort-termbiasinplanningandresourceallocation:accordingtoagencies,only37%ofclientshadagreedplansandobjectivesfortheyearandonly5%hadagreedplansandobjectivesforonetothreeyears.Inaddition,73%saidthatshort-termtacticalneedsoftentookpriorityoverlonger-termobjectives.

2020 IS THE TIME TO RESET YOUR CULTURE

2020isanopportunityforyoutoresetandensureyourfocusisoneffectiveness,withthegoalofhavingadisproportionateimpactonbusinessperformance.

Todothat,youmustmovebeyondmerelypayinglipservicetoeffectiveness,andinsteadbuildaneffectivenesscultureandmindsetacrossyourteams.

Mostorganisationslackashareddefinitionofeffectiveness.4Thefirststep,therefore,istodefinewhatismeantbyeffectiveness;withoutthat,thereisnostablefoundationonwhichtobuildaculture.

Manymarketingteams’keyobjectivesareshort-termsales.Thisoverlookshowmarketingcontributestolong-termvaluethroughbuildingandmaintainingbasesales,retainingcustomers,establishingapricepremiumandsupportingbrandextensionsintoothercategories.

Gettingabetterunderstandingoftheoverallfinancialcontributionofabrandisthenextkeystepinaneffectivenessprogramme.Oncethisisquantified,itiseasiertoreframemarketing’sroleasthecustodianofasignificantcommercialasset,andimportantly,understandingmarketing’sroleinsustainingthevalueofthatasset–notjustindrivingthismonth’ssalestargets.

Forinstance,oneoftheprinciplerolesofmarketingistodrivepurchaseswithouttheneedfordiscounting;however,inasurveyonlyonerespondentclaimedtohaveameasureofpriceelasticityintheirmeasurementframework.5

ESTABLISH AN EFFECTIVENESS PROGRAMME

Youmustputeffectivenessonyouragenda.Youcandothisbyestablishinganeffectivenessprogrammethatreachesacrossorganisationalboundaries.

HereisasimpleEffectivenessChecklisttogetstarted:

1. DEFINE EFFECTIVENESSEnsureyouhaveacompany-wideshareddefinitionofmarketingeffectiveness.Agooddefinitionis:The measure of how effective your strategy is in optimising investment to achieve positive results in both the short and long term.

Youcouldrefinethisbydefiningwhatconstitutesshort-termandlong-termobjectives.

2. IDENTIFY THE RIGHT METRICS AND SUPPORTING EVIDENCE

Chooseyourmetricsandbeclearwhetheryou’remeasuringshort-orlong-termeffects.Whateveryouchoosetomeasure,ensureyouagreeonthesupportingevidencethatjustifiesthemetricsusedandthelevelofprecisionforeachmetric.Forinstance,researchhasshownthata1%increaseinbrandconsiderationleadstoa0.5%to1.5%increaseinsales.6

However,nationallyrepresentativesurveysof1,000respondents,haveatoleranceofroughly+/-3%.So,ittypicallyonlymakessensetoreviewandmakedecisionsonthismetricafteratleastsixmonthsofaninitiative.

3. UNLEASH YOUR EXISTING DATA

Thequickestwininmeasurementistypicallynotmeasuringmore,butbyintegratingmeasurementthatiscurrentlyfragmentedandsiloed.Mostgovernmentsnowhaveopendataportals(suchasdata.gov.ie)topromoteinnovationandtransparencythroughthepublicationofdatainopen,freeandreusableformats.Marketingteamscanimproveeffectivenessbyadoptingasimilarapproachandensuringinformationiseasilyavailableandsharedacrossteamsandagencypartners.Researchindicatesthat30%ofclientsdonotsharesalesperformancedatawithagencyteams.7

4. SHIFT YOUR PLANNING HORIZONS

Mostmarketingteamshaveshort-termobjectives,andthisisevidentinthecontenttheycreate.

Ensureyouhavealonger-termplanwithclearobjectivesinplacebeyondsixmonths,oneyear,and/ortwoyears.

5. CREATE A LEARNING AGENDA

There’snoperfectmeasurementsystem,butwhenyou’vecompletedthefirstfoursteps,you’llhaveagoodideaofanysignificantgapsinmeasurement,knowledgeandcapability.Prioritisethesegaps;identifytheonesthatwill

havethebiggestimpactonyourorganisationandthendevelopaplantoaddressthem.Thismightinvolveleveragingexistingresearchortoolsorconductingbusinessexperiments,butitmightalsoinvolvecommissioningnewresearch,utilisingadvancedanalyticsorselectingnewthird-partytools.Whateveryouchoose,makesuretheinvestmentintimeandmoneyisbalancedagainstthelikelypay-off.

Mostimportantly,establishaneffectivenessmindsetacrossyourteamandorganisation,basedonapplyingevidencetobusinessperformance.Thisrequiresaction-orientationandtheapplicationofevidencetodecisions.Marketersneedtomovebeyondareportingculturetoa‘Whatnext?’culturebasedoneffectiveness.

HALF OF MARKETING TEAMS RATE THEIR ‘EFFECTIVENESS CULTURE’ AT SIX OUT OF TEN OR LESS.

1.TheBoard-BrandRift:HowBusinessLeadershaveStoppedBuildingBrands,IPAandFT,2019

2.TheConflictBetweenAccountabilityandEffectiveness,BinetandField,2007

3.MarketingEffectivenessCulture:TheNumbers,IPAandISBA,2018

4.CultureFirst:HowMarketingEffectivenessWorksinPractice,IPA,October2017

5.Ibid6.Profitability:TheBusinessCaseforAdvertising,Thinkbox,2018

7.MarketingEffectivenessCulture:TheNumbers,IPAandISBA,2018

9

Everyday,wearesurroundedbybytesandstreamsofdata.Barchartsdisplaygrowthanddecline,trendlinesindicateproblemsoropportunitiesandpiechartstellusthestoryofmarketshare.Researcherstalkaboutthepercentageofaspecific‘cohort’orthe‘high-indexingdemographicgroup,’whichtendstodehumaniseconsumers.Areweforgettingthatconsumersarepeople?

Weknowweshouldprioritiseemotionaladvertisingduetoitsimpactonlong-term

profitability,buttoomuchresearchcontinuestobeconductedandpresentedinapurelyrationalorlogicalway.Whydoessomuchresearchignoretheemotionintheroom?

InRorySutherland’s2019book,Alchemy,theadmanmakesthecaseforamorelateralapproach,suggestingthat‘alongsidetheinarguablyvaluableproductsofscienceandlogic,therearealsohundredsofseeminglyirrationalsolutionstohumanproblemsjustwaitingtobediscovered.’1

Marketerstendtoover-relyoncoldharddatapoints;theydon’tpayenoughattentiontotheemotions,theunsaid,thesentimentandthemagicaldiscoveryofresearch.

Webelievethattherearethreeareasofresearchwherehumanemotionandthepotentialfornewdiscoveryshouldneverbeignored.Thesearecoveredoverleaf.

Naomi Staff Managing Director CORERESEARCH

HUMANISINGDATA

RESEARCH

10

1. DATA COLLECTION

Thefirstistheprocessofgatheringevidencetobetterunderstandaproblemorscopeoutanopportunity.Manyresearchbriefsfocusonvalidatinganassumptionthatalreadyexists.Whilethisisunderstandable,itcanoftenleadtoresearchthatisloadedwithsubjectivebiasesandmaywellmisspotentialopportunities.Weallsufferfrombiases,givingourattentiontowhatwealreadyacceptorunderstand,andthiscanbetheenemyofdiscovery.Practitionerswhobringacuriousmindtothedatacollectionstageoftheresearchcanuncoverinterestingnuancesandnuggets.

Therearevariousqualitativeresearchmethodstoprovideadeeperunderstandingofpeopleandtheiremotions.Forexample,askingparticipantstorecordapersonalvideodiaryinadditiontoanin-depthinterview,orfacilitatingworkshopswheretheparticipantsengagewithproblemsolvingratherthanparticipateinastandardfocusgroup.

Anyopportunitytoencouragehumanstorespondemotionallywillbemorepowerfulthananalysingadatapointbasedonanassumedlogicalaction.

Withinthesemoments,itispossibletorealisethenuancesofatopic,facilitateconversationsaboutsensitivetopicsandseetheemotioninaperson’seyes.Wecannotignorethehumaninthedata.

2. WIDER LENS

Thesecondareaofresearchwhereitiscrucialtounderstandtheroleofemotionisduringanalysisandinterpretation.Toooften,researchispresentedinpercentagesandfigures,andthereisseldomacontextoranarrativetothenumbers.Itisimportanttofixawiderlensontheanalysistounderstandthebroadercontextofwhythenumbersgoup,downorremainflat.

Often,humanemotionsareakeyfactorinexplainingtheresultsofresearchanalysis.

Forexample,askingpeopleabouttheirpropensitytopurchasein2019wasverydifferenttoaskingsomeonefouryearsearlier.Whiletheeconomyhadimproved,thewidersocietalconversationsin2019wereverydifferenttothoseof2015.InJune2015,thesame-sexmarriagereferendumwasthemostimportantnationalconversation,anditboostedconfidenceinthesummermonths.2Fouryearslater,uncertaintyoverBrexitcausedovertwo-thirdsofpeopletobelievetheeconomywouldsuffer,3andconsumersentimentfelltoa56-monthlow.4

Anexampleofwhenemotionscanoverrulenumbersiswhenweanalysehealthbehaviours.Ourworkinthisareaoftenproducesnumbersthatshowpeople’sgoodintentionsforahealthylifestyle,buttherearebarrierstopeopleachievingtheirhealthandfitnessgoals.

Thesebarriersarerarelydiscoveredbylookingatthenumbers.Onlybyengagingdirectlywithpeoplewillweunderstandtheemotional

driversofpoorhealthbehaviour,suchasfear,lonelinessorstress.Wemusttakeabroadapproachtoouranalysisandconsiderthewidercontextofcultureandtheimpactitcanhaveonhowpeoplefeel.

3. STORYTELLING

Finally,researchresultsmustleaveapositiveimpressionwithstakeholders.Areportshouldhavethekeydata,chartsandfindings,butaconventionalPowerPointfilecanalsokillallinspirationandpotentialforbusinessimpact.

Presentingresultsthatwillleadtoactionisthekeytounlockinggrowthpotential.Researchmustempowerbetterdecisions,excitecreativeresponsesorallowdecisionmakerstothinkmoredeeplyandempathisewithcustomersorusers.

Maximisingtheseinsightsfromyourmarketresearchinvestmentisimportanttoyourbusinesssuccess.Aninsightorrecommendationisuselessuntilitisactioned.

Sharingfindingsasastoryensuresthattheytravelbeyondtheresearchandinsightsteamandareleveragedbyeverypartoftheorganisation,fromproductdevelopmenttofinance.Itisimportanttoidentifythekeymessagesandconsiderhowyoushouldcommunicatethemtoyouraudienceinacreativeway.

Thefirstopportunityisoftensimple-translatetheexecutivesummaryintomessageswithemotion.Usingemotiveverbssuchas‘customersfeel,’phrasessuchas‘peopleworryabout’or‘thisgroupishopefulof’conveyshowpeopleareemotional,andnotalwaysrationaldecisionmakers.Thisapproachtolanguageencouragesthereadertoexperiencetheemotionalsentimentandnotjustreadtheresearchresults.Thismayseemobvious,butitssignificanceisoftenoverlooked.

Thesecondistheformatyouusetopresentyourfindings.ChallengingthenormallinearandflatPowerPointpresentationiskey.

Videoallowspeopletoseethebodylanguageandemotionalgesturesexpressedbyresearchparticipants.Amoreinvolveddebrieftechniqueisaroleplayworkshop,whereastakeholder(e.g.thebrandmanager)takesontheroleofacustomerandengagesindialoguewithothercompanystakeholders.Thisallowsforamoreempatheticunderstandingofcustomerneeds.

Researchingpeopleisaprivilegeandshouldinspireandexcitewhensomethingnewisdiscovered.Focusingpurelyonnumberscanlosethepowerofemotion.Wemustkeepourfocusonthedistinctionbetweendatathathighlightsacustomerbehaviourandtheemotionsthatoftenunderlytheirmotivation.

WHY DOES SO MUCH RESEARCH IGNORE THE EMOTION IN THE ROOM?

1.Alchemy:TheSurprisingPowerofIdeasThatDon’tMakeSense,RorySutherland,2019

2.CoreResearchCulturalIndex,2015&2019

3.CoreBrexitBarometer,November2019

4.ConsumerSentimentIndex,KBC,ESRI,2015&2019

11

IMMOVABLEUNSTOPPABLE

THEOBJECT

MEETSTHE

FORCE

There are essentially two factors that will drive recruitment activity in 2020. It is a simple case of supply and demand and just as we have seen since 2016, the immovable object is full employment within the Irish economy, whilst the unstoppable force is the growth in job creation. Put simply, we now have more jobs than people able or available to do them.

FULL EMPLOYMENT – THE UNSTOPPABLE FORCE

Fullemploymentis,bizarrely,reallyameasureofunemployment.Itisanotionalfigureusedbyeconomistsandgenerallyrelatestoanunemploymentrateofbetween4%and6%–thereisstillalowlevelofunemploymentcausedbyseasonalwork,changesinpersonalcircumstancesandjobdissatisfaction.Manyeconomistsreferenceasimplermodelthatstatesfullemploymentisachievedwhenthenumbersofunemployedequalsthenumberofjobvacanciesinthemarket.

Regardlessofthedefinition,Ireland’semploymentlandscapeisinarobuststateofhealth.AccordingtotheCSOQ3LabourForceSurveyreleasedinNovember2019,Irelandnowhas2,326,900peopleinemploymentand128,000unemployed.1IntheyeartoQ32019theunemploymentratedroppedby15,000.Thiswasthetwenty-ninthsuccessivequarterlydropinthisfigure.Thegrowthinemploymentforthefullyearwas53,000,withcirca80%ofrolesbeingfull-time.

InJanuary2020,IDAIrelandannouncedthatemploymentlevelsinitsclientcompanieshadreached245,096–thehighestevernumberemployedinthemultinationalsector.2Inthefouryearssinceitlaunchedits‘Winning–ForeignDirectInvestment2015-2019’strategy,theIDApresidedoverthecreationof112,373jobs.

Anecdotally,bigjobsannouncements,whilestillcovered,seemlessnewsworthy.IDA-supportedorganisationscreated22,000jobsin2019,employmentgrewby53,000,yetjobannouncementshavemostlyslippedfrom‘mainnews’to‘businessnews.’

A HAPPY WORKFORCE – THE IMMOVABLE OBJECT

InAugust2019,CoreResearchconductedanemploymentsurveyof1,000Irishadults.Thiswasthethirdtimeinfiveyearsthatwehaveundertakenthiswork.Theresearchfocusesoncurrentjobsatisfaction,thelikelihoodofchangingjobsandwhatwouldinfluencepeople’schoiceofafutureemployer.

Dave Griffin Managing Director CORECREATIVE&RECRUITMENT

EMPLOYERBRANDING

12

ThefindingswillbeissuedinfullinQ22020,butwhatisevidentfromtheresearchisthegrowingsenseofjobsatisfaction.Weaskedparticipants,‘Thinking about your current role, to what extent do you agree or disagree with the following statements?’

I FEEL MOTIVATED TO GIVE MY ALL TO MY JOB ALL THE TIME

NEITHER/NOR DISAGREE SOMEWHAT STRONGLY DISAGREEAGREE SOMEWHAT

35%

STRONGLY AGREE

33%

21%

7%4%

I WANT TO STAY WITH MY EMPLOYER FOR THE LONG TERM

NEITHER/NOR DISAGREE SOMEWHAT STRONGLY DISAGREEAGREE SOMEWHAT

31%

8%

Thedevil,asalways,isinthedetail;thethreebiggestfactorsinthehealthyratingofrespondents’currentjobsarelocation,camaraderiewithcolleaguesandsecure/stableemployment.Overthefiveyearsandthreesurveys,locationhasconsistentlyledtherankingsintermsofwhatpeoplelikemostabouttheircurrentemployer–quiteliterallytheimmovableobject.

WHAT THIS MEANS FOR RECRUITERS

Thereis,unsurprisingly,adirectcorrelationbetweenrecruitmentactivity,employmentgrowthandGDP.For2020,thereareavarietyofGDPgrowthpredictionsrangingfromtheCentralBank(4.8%),3totheDepartmentofFinance(5.5%),4totheESRI(3.3%),5withsomecommercialorganisationspredictinginexcessof5%.

FDIjobgrowthwas6%in2018,8%in2019andseemsunlikelytoslow.6AlthoughBrexitremainsafactor,theremovaloftheno-dealoptionin2020islikelytoseeastrengtheninginthedomesticeconomyasinvestmentplans

canonlybedelayedforsolong.Anoverall50,000increaseinemploymentfor2020seemsaconservativeestimate.

Forrecruitersthiscanonlymeanafurthertougheningoftheemploymentmarket.Toillustratehowmuchthingshavechanged,pre-recessionemploymentreachedahighof2.16million;by2012thishadsunktoalowofjustunder1.8million,andwenowsitat2.3million.7Employeesareindemandandcanchoosewheretheywanttowork.

THE YEAR AHEAD

In2019,wetalkedabouttheimportanceofyouremployerbrand,gettingyourofferingrightandcommunicatingwithyourtargetdemographic.WetalkedaboutbuildingaconsistentapproachtoyouremploymentmarketingandfocusingontheUSPsthatyourorganisationcanoffercandidates.Theyareallstillvitalelementsincommunicatingtoyourtargetaudience,butthereisnowarealneedforconsistentinvestmentinpromotingyouremployerbrand.

Thesuccessfulrecruiterneedstodrivetheperformanceoftheirrecruitmentmachine.Evenifyourstrategy,brandandofferingarefirstclass,weseeaneedtofocusonincreasingyoureffectivenessthroughincreasedshareofvoice.

Shareofvoiceisasimpleconceptthatmeasureshowmuchoftheconversation/advertisingyourbrandhas.Itcanbeappliedtoamarketasawholeortospecificmediaorproducts.Researchclearlyshowsthatyourshareofvoiceneedstobelargerthanyourshareofmarketforyoutogainmarketshare.Fromarecruitmentpointofview,youneedtobeinmoreconversationstoensurethatyougetthebestcandidates.

Only11%ofrespondentsdisagreedwiththestatementaboutjobmotivation,and65%saidthattheywishedtostaywiththeiremployerforthelongterm.

Thelevelofsatisfactionhasgrownsteadilyovertime,from61%in2015to64%in2018andnow65%.Furthermore,only22%ofrespondentsindicatedthattheywouldseriouslylookforarolewithanotheremployerinthecomingtwelvemonths.

Whilenearly40%ofrespondentswouldrateanewemployerintermsofcompensationandbenefits,itislifestylefactors,culturalfitandinteresting/notableworkthatdrivecurrentemploymentsatisfaction.

THERE IS NOW A REAL NEED FOR CONSISTENT INVESTMENT IN PROMOTING YOUR EMPLOYER BRAND.

8%

19%

STRONGLY AGREE

34%

1.Q3LabourForceStatement,CSO,2019

2.EmploymentLevels,IDA,20193.Q1Bulletin,CentralBank,20204.Budget2020,EconomicandFiscalForecast,TheDepartmentofFinance,2020

5.GDPForecasts,ESRI,20206.IDAIreland,20197.Pre-recessionEmployment,FinFacts,2019

13

Google’sChiefEconomistHalVarianonceadvisedthatinaworldwheresomethingisubiquitousandcheapyoushouldfocusonbuildingsomethingthatisrareandvaluable.ForGoogle,Facebookandmanypublishers,adimpressionsareubiquitousandcheap,butwiththedemiseofcookie-basedtargeting,itis‘effectivemeasurement’thatwillbecomerareandvaluable.

Cookiesarethebitsofcodethatarestoredbywebsitesinpeoples’browserstotrackbrowsingactivity.Therearetwomaintypes:

First-party cookiesarecreatedbyawebsitethatyouvisitdirectly.Thesecookiescanbehelpfultotheuser,becausetheyenablethebrowsertorememberkeypiecesofinformation,suchaswhichitemsyouaddtoyourshoppingcartonthatsite,yourusernameorlanguagepreferences.

Third-party cookies,however,arenotcreatedbythewebsiteyouvisit;theyarecreatedbyotherdomainsoradnetworkstotrackusersacrossmultiplewebsites.Thedatacollectedbythesecookiescanbeusedtotailoradsandtargetpeopleaccordingtotheirbehaviour.

Overthelastfewyears,therewereseveralactionsthatresultedintheslowbutsteadydeclineofthethird-partycookie.In2017,Applebeganblockingthird-partyusertrackingonSafari(32%ofthemarket)1.TheintroductionoftheGDPRin2018requiredwebsitestosecurecookieconsentfromusers.In2019,Appleextendeditsprohibitionbyreducingthelifespanoffirst-partycookiesfromsevendaystooneday.Mozillaalsobannedthird-partycookiesonFirefox,andinJanuary2020,Googleannouncedthatitwillstopsupportingthird-partycookiesonChrome(55%ofthemarket)overthenexttwoyears.2

David Fogarty Digital DirectorCOREINVESTMENT

DATA

14

PANEL MEASUREMENT

Intandemwiththisdisruption,anotherissuetofocusonisthethornysubjectofcampaignreachandfrequency.Wemayknowhowmanyadimpressionswesecure,butwedon’tknowwhatproportionoftheoveralltargetaudienceacampaignreaches.Sofar,notrackingsystemcanmeasurethefullonlineconsumerjourney.

Therearetoomanygapsinthedataacrossdevices.Theonlywaytodealwiththiscomprehensively,inawaythatisprivacy-compliant,istocreateapanelofusersthatextrapolatesthereachofanadvertisingcampaign.Thisisnotanewidea–panelshavebeenusedforyearsinmostofflinemedia.

However,thisisnotaneasytask;itwouldrequirethecreationofaresearchpanelthatisindependentofthetechcompaniesandgovernedonajointindustrybasis.Also,thisissuegoesbeyondonlinemedia;itisbroaderthanGoogle,Facebookandtheonlinelandscape.Itistimetotakeacomprehensivecross-mediaapproachtoallcommercialaudienceresearch.

WHAT DOES THIS MEAN FOR ADVERTISING?

Programmaticadvertisingwillbeaffectedmost,becauseitisheavilyreliantonthird-partycookiestodetermineuser-leveltargetingandmeasurement.Withoutcookies,advertisersareunabletotargetconsumerswithtailoredadsordeterminewhetherthoseadvertisementsconverttosales.

Programmaticmedia-buyingreliesonmatchingadvertisingtoindividualsorcohortsofpeoplebasedontheirbrowsinghistoryacrossmultiplewebsites.Withthisapproachnowconstrained,therewillbeashifttocontextualadvertising–placingtheadvertisementalongsidecontentthatmatchesadvertisergoals.Thisisanoldpractice,buttheindustryisimprovingitbyusingmachinelearningtomakethematching

moreeffective.BothVoxMediaandTheWashingtonPost,forinstance,areinvestingintechnologytodojustthat.

Googlehasalsoproposedits‘PrivacySandbox’concept,whichwouldallowadtargetingtocontinuewithinitsChromebrowserwhilerespectinguserprivacy.

Theideaisthatadvertising,measurementandfraudpreventionstandardswouldbeestablishedusingapplicationprogramminginterfaces(APIs)thatwouldfacilitateinterest-basedadplacement,conversionandattributionwithoutpassingpersonalinformationbacktoadvertisers.

Googleislookingtocollaboratewitheveryoneonthisapproachandhasrequestedfeedbackfromall

industrystakeholders,withaviewtothissolutionbeingadoptedasaglobalstandard.

Fornow,theindustryistryingtoworkoutwhattheimpactofsuchanideawillmeanandwhetherthe‘PrivacySandbox’conceptwillleveltheplayingfieldornot.

Whatevertheoutcome,Googleisstillwell-placedinthepost-cookieworld.Itcollectsavastamountoffirst-partydataonusersthroughitsmanyservices.Thisdatacollectionisunaffectedbythedemiseofthird-partycookiesandwillenableittoselladvertisingwithinitsowntools,irrespectiveofwhatthemarketdecides.

JOINED UP THINKING NEEDED

Themediaindustry(television,press,outdoor,radio,cinemaandonlinemedia)hasresistedcross-sectorcooperationtodate.

Asaresult,wehaveafragmentedapproachtoaudienceresearchwithvaryingstandardsandlevelsofcredibility.Thissituationisuntenable,andwebadlyneedalong-termstrategy.

Taketelevisionforexample;thissectorrigorouslyappliesthehigheststandardsinaudienceresearch,butthecompanythatmanagestheprocess(TAMIreland)isstillonlycomprisedoftraditionalbroadcastersandagencies.

AlthoughGoogleandFacebookaccountforapproximately35%ofalladvertisingmoneyspentonvideointheRepublicofIreland,3theyarenotrepresentedattheTAMIrelandtable.

Nobodyisblockedfromjoining,butthereisnoactivecampaigntochangethestatusquo.Thisisolationismisreplicatedthroughoutthemediaindustry,anditisnotsustainablegiventheblurringoflinesthatweseebetweenmediasectorsandthelackofasingleviewoftheaudience.

Themediaindustryneedstocometogethertodiscusstheseissues,amongmanyothers.Theideaofanindustryassociationhasbeenfloatedbeforebut2020istheyeartomakeithappen.

Aforumtodiscussthefutureofthemediamarketandaddressissuesofcommonconcernisurgentlyrequired.

IntheInvestmentsectionofthisreport(seepage34),wetalkaboutre-establishinganIAPIcommitteetofacilitatetheaccuratevaluationofthemediamarket(intermsofadspend).Thiscommitteecouldalsobehelpfulinencouragingstakeholderstosetupthebroaderforumdescribedabove.

THE IDEA OF A MEDIA INDUSTRY FORUM HAS BEEN FLOATED BEFORE, BUT 2020 IS THE YEAR TO MAKE IT HAPPEN.

15

1.BrowserMarketShare,Statcounter,January2020

2.Ibid3.Coreestimates,2020

Someoftheindustry’smostreveredcampaignsare,infact,brilliantlyactivatedsponsorships,betheyteams,events,venuesorpersonalities–thinkP&G’s‘Thankyou,Mom’forTheOlympicsorNike’s‘DreamCrazy’.

Sponsorshipprovidesaplatformforpowerfulcommunicationswhenarmedwithdeephumaninsights.Why?Becausesponsorshipisrootedinfanpassionwhich,whenharnessedwithprecision,providesmagicforbrands.

However,playingwithpassionisakintoplayingwithfire;youbetterbecareful,andyoushouldhavethefollowinginsightsbeforeyoustart:

1.Athoroughunderstandingoffandynamics.

2.Afirmgraspofasponsor’srightsandassets.

3.Theknowledgeofhowandwhattomeasure.

Anexpertsponsorshipteamwillbringthesethreeelementstogetherinaseamlessfashion.Butdoyoualwayshavetherightexpertsintheroom?

FAN DYNAMICS

Sponsorshipexpertsarechannel-neutralbecausegenuinefaninsightsguidetheirthinking.Sponsorshipcampaignsrelyonauthenticitytocutthroughandbemeaningful.

Vitaltoachievingthisisthefullunderstandingofthefanperspective(notjustthebrand’scustomer)andthedepthoftheirpassion.Inmanyways,sponsorshipresemblesadvertisingwithpurpose.Atitsbestitmeanstappingintoculturesandsubculturesanddecidingtostandforsomething.Thisrequirescarefulanalysistounearththerightinsights.

Jill Downey Managing Director CORESPONSORSHIP

WHENPRECISIONPASSION

SPONSORSHIP

16

Instead,resourcesarepouredintoactivation,atwhichIrishmarketersexcel.Theironyhere,ofcourse,isthatgreatactivationisfuelledbygreatmeasurement.

Inmanysponsorshipcontractsthebulkofthetangiblevalueisdeliveredfrombrandexposureandthisisnotdifficulttomeasure.Sowhydon’tbrandscapturethisexposureaccuratelyandaccountforitintheoverallmarketingandmediaplan?Forexample,ifyouareconcernedaboutthebalanceofyourbrandversusproductmessagingbutyouonlyassesssponsorshipspendsandnotexposure,thenyoumaybeover-orunder-investing.Understandingtheeurovalueoftheexposureisonlyhalfthestory.Youmustunderstandthefullextentofyourbrand’svisibilityandthatofyourcompetitors.Thisistheonlywaytoknowyourtrueshareofvoiceasseenthroughtheeyesofyourcustomers.

So,whatisgettingintheway?

SILOED THINKING

Theenemytogreatsponsorshipissiloedthinking.Sponsorshipssometimesfallundertheremitofadifferentteamoutsidetheprimarybrandteam.Thisteammayevenhavetheirownagencyrelationshipsandaresometimestiedintolimitingcontracts.Itbecomespainfullyclearthatalackofchannel-neutral,sponsorship-specificexpertiseisattheheartoftheproblem.Asaresult,itisnotsurprisingwhensponsorshipsgetcaughtupinacycleofshort-termism,andstruggletodelivertheirtruevaluetothebrand.

Inclientcompanies,sponsorshipsshouldnotsitinasilobutshouldbemanagedwithinthebrandteamor,ifhandledbyateamadeptinsponsorshipmanagement,theyshouldworkverycloselywiththebrandteam.Thisfacilitatesastreamlinedapproachtoallcommunicationscomingfromthebrandandmaximisestheopportunitysponsorshippresents.

BEING ORGANISED

Bythetimeitisgivenadequateattention,toooftenthesponsorshipplangetstoanapparentlyinflexiblerightsholderwhowon’t(andoftencan’t)helpexecutethecreativeidea.Thiscandelaypotentiallygreatwork,causeunwantedfrustrationsinthepartnershipandultimatelyleadtotheweakeningofideas.Thiscontributestotheideathatthesponsorshipdoesn’toffervalueformoney.

Acreativeideathatfallsatthefinalhurdlewiththerightsholderisacompletewasteoftimeandresourcesandwillfaroutweighthecostofbringingintherightexpertiseinthefirstplace.Marketersandtheiragenciesmusthavetherightintelligencefeedingintotheprocess.Gettherightpeopleintheroom,withtherightinformationandthenunleashthecreativeexperts.

FULL-SOLUTION APPROACH NEEDED

Despitetakinglargechunksofthemarketingbudget,sponsorshipisnotalwaysthebiggestpriorityinthecalendarforthemarketer.

Thisisoftenforgoodreason;perhapsabrandrefreshoranewproductlaunchmusttakeprecedence.

Theintentiontocreatesomethingamazingbehindthat‘sleepinggiant’or‘Trojanhorse’ofasponsorshipisresoluteatbrandplanningstage,butitinvariablygetsconstrainedbytime,resources,orissimplyre-prioritised.Thisisthecaseinboththemarketingteamandintheagencyteamsthatservethem.

Therefore,asamarketer,youwillpotentiallysacrificegreatopportunitiesforthebrandbyside-liningsponsorshipsinfavourofotherprioritiesorbyallowingasiloedteamtocontrolthethinking.

Marketersshouldasktheiragenciestoprovideateamofexpertswhocanunlockthepotentialoftheirsponsorships.Givingthewholesponsorshipbrieftooneintegratedteam,whomustfullyunderstandthewiderbrandcontextbutwhoseroleistofocusonthesponsorship,istherightwayforward.

Itgivesdueprominencetothesponsorship,awakensthesleepinggiantandwillbethatTrojanhorseinthebattleforconsumerattention.

A FIRM GRASP OF A SPONSOR’S RIGHTS AND ASSETS

Sponsorshipexpertsapplythesamerigourwhenassessingasponsor’srightsandassets.Mostsponsorsactivateafractionoftheirrightsanddosowithlittleunderstandingofwheretherealvalueiswithintherightsschedule.Sponsorshipexpertswhocanmeasurethisvalueaccuratelynaturallyknowhowtounlockmorevalue.

Atthesametime,afundamentalunderstandingofwhatarightsholdercandeliver,bothlegallyandpractically,isoftenmissingfromthecreativeprocess.Creativeideasmustbedevelopedwithduediligencegiventotherightsholder’sposition.Harnessingfaninsightalongsideathoroughunderstandingofrightsenablesmuchmoreeffectivebriefingandallowsagencypartnerstomaximisevaluethroughactivation.

THE KNOWLEDGE OF HOW AND WHAT TO MEASURE

Thereisawell-wornargumentinsponsorshipthatitisdifficulttoprovereturnoninvestmentorisolateitseffectiveness.Inthismarket,theconventionalwisdomhasbeentoacceptfartooreadilythatROIcannotbeproven,andintheprocessseeminglyforsakeallgoodmeasurementpractices.

GET THE RIGHT PEOPLE IN THE ROOM, WITH THE RIGHT INFORMATION, AND THEN UNLEASH THE CREATIVE EXPERTS.

17

TheworldoftelevisioninIrelandisdestinedtochangesignificantlyin2020.NotsincetheintroductionofSkyin1989willtherehavebeensomuchdisruptiontotheavailabilityofcontent.

ByMarch2020,Disney+willjoinAmazonPrime,AppleTV+andNetflixasglobalstreamingservicesavailableinIreland,withthepotentialformoretofollow.

Allthesenewofferingswilljoinanalreadyclutteredvideostreamingmarket,withtheRTÉPlayer,VirginTVPlayer,NowTVfromSkyandplatformssuchasYouTubePremiumandtheomnipresentFacebook.

Muchhasbeenwrittenabouttheso-called‘streamingwar’andwhowilleventuallyprevail.Asthesenewservicesare

subscription-basedanddonotcarryadvertising,theimportantissueforIrishadvertisersishowtheseserviceswillaffectexistingTVplatformsandthepotentialimpactonadvertisingwithinthem.Currently,livetelevision1watchedviaSky,VirginorSaorviewisstillthemostwatchedcontentinIreland.2Regardlessofaudience,liveTVstilldominates.

BEGINS IN

2020

THE

Nick Fletcher Director of Media Insights CORE

VIDEO

18

LIVE TV IS STILL NUMBER ONE

Thestrengthsoflivetelevisionarewellknown–thekeysportingeventsthatyoudon’twanttomiss,theappointment-to-viewshowsthatarepartofthenationalconversationandthelatestIrishnewsandcurrentaffairsfromatrustedsource.

Thesethreekeycomponentswillcontinuetoremainpartofthetraditionalbroadcasters’schedules.Whilesportingeventsmaygraduallymigratetootherplatforms,therewillbepressuretomaintainthose‘inthepublicinterest’onfree-to-airplatforms,anditisunlikelythatglobalplayerswillinvestinlocal,Ireland-relevantprogramming,particularlycontentthatispublicservice-orientedandnotcommerciallyviable.Itremainsafactthattherewillcontinuetobearoleforlive,Ireland-relatedcontentinthefuture.

Nevertheless,wehaveseenadeclineintheviewingoflineartelevision.3In2019,therewasa4.8%declineinviewing(amongalladults)tolinearTV.Foryoungeraudiences,thedeclinewasmoredramatic,with15-24year-oldviewingdown7.2%.4

However,thefallwasnotassubstantialaspreviousyears.In2018,forexample,theyear-on-yeardeclinefor15-24yearoldswas21.5%,andin2017,thedropwas18%.5The2019audiencenumberscouldbethefirstsignofaslowingdowninthedeclineoflinearTV.

WHAT’S IN STORE FOR TV?

Thebigquestionsarehowfaraudiencescancontinuetodecline,andforhowlongcan‘traditionalTV’maintainitsstatusasthefoundationmediumforbuildingbrands?

InarecentOfcomsurveyintheUK,itwasreportedthatoverhalfofallhouseholdsnowsubscribetoonestreamingserviceoranother.6Interestingly,theseservicesareeatingawayatthemselvesaswellasTVbroadcasters.ThereisalsotheargumentthatcostwillbeakeyfactorintheTVservicesweoptforinthefuture.Accesstoallstreamingservicescouldbeover€300ayear,ontopofcurrentPay-TVservicessuchasSky,Virginoreir.Itisunlikelythatmosthomeswillsubscribetoallplatforms,socontentwillagainbethedecidingfactor.

Amajorconcernfortraditionalbroadcasterswillbeviewerswhostopwatchinglivetelevisioncompletely.Thesearetheviewerswhohave‘cutthecord’andmovedentirelytostreaming(orother)servicesfortheirvideocontent.Atthemoment,theseviewersrepresentafractionofthetotal.92%ofhomesinIrelandstillhaveaTVset.7

However,oneinterestingandoftenoverlookedfactisthereductionoftotalTVsetsinhomes.Adecadeago,overhalfofallhomesinIrelandhadtwoormoreTVsets.In2019,60%ofhomeshadonlyoneset.8Whilstthemainsetsaregettinglargerandsmarter,peopleareswitchingtootherdevicesas‘secondsets,’whichishavingadetrimentaleffectontotalviewing,particularlyamongyoungerpeoplewhomaynothaveaccesstothemainset.

Cord-cuttingisasignificantfactoralreadyintermsofthedeclineinmultipleTVsets,butitisdoubtfulitwillaffectthemainTVsetintheshortterm.

Thisisbackedupbyreachfiguresforlineartelevision,arguablytheultimatemetricforadvertisers.ImpactsandTVRsaresimplythecommoditywebuytoultimatelydeliverreach.In2013,93.7%ofalladultsviewedsomelinearTVeachmonth.9

In2019,thatnumberdroppedto89.8%.10Foryoungeradults,thetotalcommercialreachdroppedfromapotentialof91.2%to81.6%.Again,audiencesstillwatchtelevision,butnottothesameextentasfiveyearsago.

Industrychatterisoftendominatedbystoriesofamediumincrisis:televisionviewingisinfreefall,youngpeoplenolongerwatchtelevisionandsoon.However,thetruthismorenuanced.Itisundeniablethatforvariousreasonsourconsumptionoflivetelevisionhasdecreased.However,livetelevisionisthenumberonevideotouchpointofall–evenforyoungaudiences.

Reachishardertodeliverthanbefore,butitisstilldeliverable.TVcampaignsmustworkhardertodeliverthose‘lighterviewers’thatsosignificantlyaffectreachandcommunicationdelivery.

Televisionisnolongeramediumthatworksinisolation.Thereisandtherewillcontinuetobeamovetowardsonlinevideoservices.Thebestperformingadvertiserswillcontinuetounderstandthischangingmarketandusethebenefitsoftelevisionasthefoundationforanoverarchingvideostrategy.

ACCESS TO ALL STREAMING SERVICES COULD COST OVER €300 A YEAR.

1.Liveviewingisanyscheduledprogrammethatiswatchedattimeofbroadcastonly.

2.IPSOSVISTATAMresearch,TAMIreland,2019

3.Linearviewingisanyscheduledprogrammethatiswatchedattimeofbroadcastorwithinaseven-daywindow.

4.Techedge,20195.Ibid6.MediaNationsReportandUKViewingData,OfcomandBARB,August2019

7.Nielsen,20198.Ibid9.Techedge,201310.Techedge,2019

19

Haveyoueverfoundyourselfpatientlywaitingforanonlinevideoadtofinishandthoughtthatitreallystruckachordwithyou,thatitwasveryrelevant?Thislevelofadpersonalisationisrarely,ifever,foundonlineartelevision,1butbroadcastershopetochangethat.HowwewatchTVhaschangedenormouslyoverthepasttwodecades,ashasthewaybrandscanadvertiseontheplatform.Adjustable‘rabbitears’thatcontrolthelevelofstaticareobjectsofthepastastechnologynowallowsustopauselivebroadcasts,catchuponcontentandbingeonboxsets.

AddressableTVadvertisinghasbeenavailableintheIrishmarketsinceMay2017,intheformofSky’sAdSmartservice.

Skyhasthetechnologicalinfrastructuretopre-loadcommercialsontoitsset-topboxes.Theseadscanbetailoredtoappealtodefinedgroupsofviewers.

Alibraryofadsissentbysatellitetothehard-diskoftheset-topbox,whichthenenablesthesystemtoshowdifferentcommercialstodifferenthouseholds.Effectively,twohouseholdswatchingthesameTVprogrammeatthesametimecannowseetwodifferentcommercials.

However,theleveloftailoringislimited,astargetingisbasedonclustersofhouseholds–notindividualpeople.AdSmartusesprobabilisticmatchingtoformlike-mindedgroupsofhouseholds,becauseitcannot

useactualdataataspecifichouseholdlevelduetoGDPRrestrictions.

Currently,thereare24audiencesegmentsandarangeofgeographicalclustersavailable.ThesesegmentsarederivedfromacombinationofSky’sowncustomerdataandinformationfromtheconsumerprofileconsultants,ExperianandTransUnion.

ThesesegmentswillfurtherexpandtoincludeinterestingchoicessuchaslightTVviewersandearlytechadoptersinthecomingmonths.Atsomestage,advertiserswillbeabletousetheirowncustomerdatatocreatebespokesegments.ThisiscurrentlyavailableintheUK,buttherearenofirmplansyetfortheRepublicofIreland.

Calvin Kelly Senior Video Investment Manager COREINVESTMENT

Shane Kiernan Video Investment Manager COREINVESTMENT

WHATISADDRESSABLE ADVERTISING?

VIDEO

20

ADSMART REACH COULD GROW FROM 33% TO 49% OF TV HOMES BY THE END OF 2020.

DatafromSkysuggeststhatAdSmartcampaignscanboostspontaneousadrecallby10%,2buttheservicehasyettobreakintothemarketingmainstreamduetoitsrelativelylowreach.

AdSmartisavailableto33%ofTVhomesintheRepublicofIreland;however,becauseitisonlyaccessibleon14Skychannels,campaignreachisconstrained.Forexample,a14-daycampaignwillbeseenin52%ofAdSmarthomesonaverage,increasingto73%foramonth’sactivity.3Putanotherway,atypicalfour-weekcampaignhasthepotentialtobeseeninapproximatelyonequarterofallTVhomesintheRepublicofIreland.

BROADER REACH ON THE CARDS

However,thingsarelookingupforAdSmart.Duringthesecondquarterofthisyear,theservicewillextendtoincludeVirginMediachannels1,2and3intheRepublicofIreland.Eventually,thiswillexpandAdSmart’savailabilityfrom33%to49%ofTVhomes,4whichwillincreasethelevelofinterestinaddressableadvertising.

ThefirststepinrollingoutthiscombinedofferingwillseeVirginMediachannelsshowingaddressableadsonSkyset-topboxes.VirginwillthenupgradeitsownboxestosupportthetechnologynecessarytocarrybothitsownandSky’saddressableads.ThenewboxeswillbegintorolloutinAprilandaddressableservicesontheseboxesshouldreachcriticalmassforalaunchbeforetheendoftheyear.

Furthermore,Channel4hasagreedadealwithSkytobringAdSmarttoviewersintheUK.

Thedetailshaveyettobefinalised,butitislikelythatChannel4willbeonboardbytheendof2020.However,thiswillnotbepartoftheofferingintheRepublicofIrelandfortheforeseeablefuture.

AFFORDABLE

Althoughthe‘cost-per-thousand’ofaddressableTVisapproximately40%greaterthanstandardTVadvertising(dependingontheaudience),5theabsolutespendcanbecontrolledtomakeitaffordableforsmallerbudgets.AddressableTVgivesbusinessestheopportunitytoadvertiseinawaythatreduceswastage.Forexample,individualcountyareascanberingfenced,whichwillappealtocompanieswithlimiteddistribution.Skyalsoplanstointroduceamoregranularoptionlaterthisyear,whichwillenableustotargetcampaignsaccordingtothefirstthreedigitsoftheEircode.ThisregionaltargetingisthemostcompellingaspectofAdSmartasitprovidesaveryclearadvantageoverconventionalTVadvertising.Ontheotherhand,thelifestyle-basedsegmentsthatSkyoffersalsoprovideprogressivetargetingoptionsforadvertisers,buttheadvantageislessclear-cutduetothetendencyofmanymarketerstoprioritisebroadpenetration(asopposedtotightsegmentation)whenitcomestobrand-buildingcampaigns.However,theavailabilityofthesesegmentsdoesgiveustheoptiontotailorcopytoappealtodifferentaudiences,andthisisworthtesting.

A BLENDED APPROACH

Addressableadvertisingisanimportantdevelopmentfor

television.Thetechgiantscontinuetoincreasetheirshareofthevideomarket.Google,FacebookandAmazonhavesignificantresourcesavailabletoinvestincontentandtechnology,andtheyposearealthreattoTVadvertisinginitscurrentform.AddressableTVprovidesSky,VirginMediaandChannel4withtheopportunitytoreclaimsomeoftherevenuethathasmovedtoonlinevideoprovidersinrecenttimes.

AddressableTVisnotviableasastandaloneoptionduetoitscurrentlimitedreach,butitshouldbeconsideredintandemwithmoreconventionaluseofTVinthesamewaythatonlinevideoadvertisingisblendedwithtraditionalTVadvertising.Thisblendisforeverchangingandwillcontinuouslyevolve.

AsmoreTVstationsintegratewiththeAdSmartplatform,itspotentialwillgrow.Werecommendthatclientsstarttoexplorehowtheycanuseittominimisewastageand/orenhancerelevance.

Lessonslearnedthroughtrialandexperimentationareinvaluable.AddressableadvertisingisthefutureofTVandunderstandingthisnewopportunityoffersadvertisersapotentialcompetitiveadvantage.

1.LineartelevisionmeansaTVchannelthattransmitsscheduledprogrammingselectedbythebroadcaster

2.AddressableTVHalvesChannelSwitchingandImprovesAdRecall,claimsSky,TheDrum,August2019

3.SkyIreland,20204.Coreestimates,20205.Ibid

21

Inthepasttenyears,thenumberofletterspeoplereceiveinIrelandhasfallenbyhalf.1Despitethis,oneaspectofcustomerbehaviourhasbeenrevived-theanticipationofreceivingapostaldelivery.Whilecustomersmaynowreceivefewerbirthdaycardsorbillsinthepost,therehasbeenasignificantincreaseinreceivingpackagesandparcels,asonlineshoppinggrowsinpopularity.

Attheendof2019,AnPostreportedthatthenumberofparcelshandledbythecompanyhadincreasedby40%sincethepreviousyear.1

Thisincreasereflectsthemassadoptionofonlineshopping,witheverythingfromclothestoshavingsoapincreasinglyboughtonline.Peoplenowlookforwardtoopeningtheirpost-boxesanddoorstoreceivetheseitems.

Duringthesameperiod,useofdigitalcommunicationchannelsgrewexponentially,andmanypredictedthedemiseofphysicalpost.However,whilepeoplemaynolongersendasmanylettersastheydidinthepast,thenextgenerationofcustomersstilllookforwardtoreceivingitemsinthepost.

Thisbehaviourhasevenledtoanewphenomenon–‘unboxing’.YouTubeispopulatedwith‘unboxing’videos,wherepeopledocumentthemselvesopeningapackagefromaboxanddisplaying,reviewing,andshowingoffitscontents.

84%ofUSadultsunder40yearsofageclaimthey“taketimetolookthroughtheirmail”2,oftenanticipatingthearrivaloftheirmostrecentonlinepurchase.Thismoment,inthehome,isaprimepointtoengagecustomers,butwhenbrandsusedirectmailtheymustactwithrelevance,respectandtheymustdelightthecustomer.

MOBILE SEARCH BATTLEGROUND

IS THE KEY

Spendonsearchmarketingcontinuedtogrowin2019,butatanincreaseof9%,thisrepresentsthelowestgrowthratesince2015.Searchmarketingboomedoverthelasttenyears;in2019,globalspendonsearchreachedapproximately€122.7billion—equalto22%ofalladvertisingspendworldwide.1Pay-per-click(PPC)advertisinghas,inrecentyears,reachedamaturestage.Whileinvestmenthascontinuedinthespace,theonlyareacapableofgrowthwillbe‘mobile.’Mobilesearchadspendisexpectedtoriseby19.2%thisyearandrepresentsalmosttwo-thirds(64.8%)oftotalsearchspendworldwide.1

InIreland,whenwetalkaboutsearchwemeanGoogle,whichhasanalmostcompletemonopolyhere,with96.3%ofallsearcheshappeningonitsbrowserorapp.2

BingandYahoo’smarketshareremainsaroundthe3%mark,soratherthanarivalsearchengine,itisAmazonthatrepresentsthemostrealisticthreattoGoogle,whichlikelycomesfromitsdigitalmarketingoffering,AmazonWebServices(AWS).WhileyoucanadvertisewithAWSonadirect-buybasishereinIreland,wecontinuetowaitforthefulllaunchoftheplatform.

Lookingtotheyearahead,therearefourkeyissuestobeawareof:

1. THE BRAND PPC DEBATE

WeexpecttheretobecontinuedscrutinyofbrandPPC(biddingonyourownbrand’skeywords,suchasNikebiddingon‘Nikerunningshoes’)into2020.

Withsearchbudgetsmostlygrowingbysmallpercentagesyear-on-year,youmayneedtofreeupPPCbudgettoensurethatyouaremoreactivewithyourgenericstrategy(e.g.‘runningshoes’),soyouhaveastrongpresenceintheearlyresearchstage.Thiswillbeparticularlyrelevantforbrandswithouthighcompetitionontheirbrandterms.

WerecommendrunningatrialperiodwithbrandedPPCpaused,sothatyoucanmonitortheimpactonorganicresults.Hopefully,therewillbenolossofleads,andyoucanre-investthesavedbudgetfurtherupthemarketingfunnel.

22

Shane Lyons Head of Search Strategy CORE

SEARCH

DO NOT PLACE TOO MUCH EMPHASIS

ON VOICE TECHNOLOGY.

2. ARTIFICIAL INTELLIGENCE TO DRIVE EFFICIENCY

AnotherkeytrendwillbethecontinueduseofArtificialIntelligence(A.I.)basedfeatures.WeuseA.I.inourdailylivesfrompersonalisedSpotifyplayliststoreal-timetrafficinformationonGoogleMaps.Increasingly,A.I.isthecentralcomponentinallsmart bidding strategies.Inoneparticularcase,byintroducingthistechnologytoaclient’sbidstrategywesawanincreaseintheamountofbidmodificationsof70,000permonth;thisisduetotheA.I.’sincreasedsophisticationandabilitytoadjustinrealtime.A.I.hastakencontrolofthemoremenialtasks,allowingsearchmarketerstofocusmoreoftheirtimeonstrategyandoptimisation.

WhenitcomestoA.I.,ouradviceistohandoverthereinstothemachinesandreaptheefficiencybenefits.Clientsforwhomwehaverunsmart-biddingstrategieshavealsoseencost-per-conversionsreduce.

3. VISUAL AD FORMATS

In2019,GoogleintroducedGalleryads,amobile-specificformatthatdeliversalarge‘swipeable’carouselofimages.GoogleShoppingadswasthefirstformattointroduceimagestopaidsearchbackin2016,butwepredictthatsearchresultswillbeincreasinglyimage-based.

5Gisnowavailableincertaincitiesacrossthecountry,andwhilemainstreamadoptionmaystillbeawhileaway,theincreasedinternetspeedsand

reducedlatencythat5Gwilldeliverwilllikelymeanthearrivalofmoreinteractive(andpossiblyevenvideoformats)tosearchin2020.

4. VOICE SEARCH/ NO-CLICK SEARCHES

Ontheorganicsideofsearch,‘voice’continuestobethemostnewsworthyarea.While‘digitalassistants’arenowineverythingfromfridgestocarstowearables,recentindustryusagestudiesshowthatadoptionanddailyuseremainverylow.It’sstillearlydaysforvoicetechnology,intermsofsearch,marketingandecommerce.Whilethepotentialisthere,therearemanyunknownsaboutwhatthefutureofvoicewilllooklike.Intheshorttermitisimportantforcompaniesnottoplacetoomuchemphasisonvoicetechnology.

Oneareathatisworthexaminingistheriseofno-clicksearches.AstudybySparkTororecentlyfoundthat56%ofsearchesonmobilenowreturnno-click,meaningtheusersimplyfindstheinformationtheywerelookingforwithinthesearchresultsratherthanhavingtoclickthroughtoawebsite.3

Animportanttaskistocarryoutanorganicrankingsreportofyourtoptraffic-drivingkeywords.

Withthere-designofGoogleSearchformobile,organicsearchresultsarebecominglessimpactfulonmobile.

Acrosshotelandtravelsectorsinparticular,brandshavenochoicebuttoadvertiseinordertobeseenacrossmobile

search,astheflightandhotelfinderfromGoogleispushing‘Position1’furtherandfurtherdownthepage(andwearelesslikelytoscrollonmobile).IfyourbusinessgeneratesalotofleadsonGoogle,toremaincompetitiveyoumusthaveplansforhowtodiversifyyourtrafficsources,andhowtooptimiseyourcontenttobenefitfromzero-clicksearches.

23

1.SearchGrowthhasCooledandVoiceisaNichePursuit,WARC,November2019

2.SearchEngineMarketShareIreland,2020

3.LessthanHalfofGoogleSearchesNowResultinaClick,SparkToro,August2019

2020isexpectedtobeanotherrollercoasteryearforsocialmediaplatforms.Thepressuretobesociallyresponsiblewillcontinuetomountforall.Inthepastyear,significantshiftsinthewaythatFacebookmanagesuserdataresultedinincreasedawarenessofprivacyissuesacrossthecompany’sportfolio(whichincludesInstagramandWhatsApp).

Instagramremoved‘likes’fromposts,ostensiblytoreducetheirnegativeeffectsonsomeusers.Morerecently,eachplatformhascommunicatedtheirdifferentapproachestohandlingpoliticaladvertising.Facebookwasheavilycriticisedforitsdecisiontoacceptpoliticaladsandnotpolicethetruthfulnessoftheircontent.

Twitter,ontheotherhand,haswonthePRbattlebydeclaringa‘nopoliticaladspolicy.’Apartfromwatchingthecontinuingfalloutofthiscontroversyandtheinevitableslideintoaneraofregulation,theotherkeyissuestowatchthisyearareoutlinedoverleaf.

ANOTHER

Stha Banks Head of Paid Social COREINVESTMENT

YEAR

1,000,000

150

25

7

3

10

50

1

235

SOCIAL

24

However,relyingonthesecompetitiveadvantageswillnotguaranteeadvertisers’supportindefinitely–Facebookmustdomoretofacilitateviewerengagement.

THE RISE OF TIKTOK

TikTokisnowanimportantsocialplatformandhasalreadybeendownloaded1.5billiontimesglobally.4Ownedby$75bnChinesetechcompanyByteDance,TikTokisamobileappforcreatingandsharingshort15-secondmusicvideos.Itclaimstobethego-toplaceforfun,raw,videostorytelling.Ithasseveraltoolsforpeopletoeasilycreatemicro-contentanddisplaysapersonalisedcontentfeedtoeachuser.Italsohasplanstointroduceashoppingtool,allowinguserstobuydirectlyfrombrands.

Globally,TikTokhascirca500millionactivemonthlyusers.5InIreland,dailyactiveusers(over15yearsofage)areestimatedat90,000.6

BrandsafetyhasbeenaconcernforTikTokduetothevulnerabilityofitsyounguserbaseandnervousnessabouttheplatform’sabilitytoreininharmfulcontent.ThereisalsoanationalsecurityinvestigationintheUSintoTikTok’sallegedcensoringofanti-Chinesecontentandquestionsabouthowitstorespersonaldata.

TikTokisawareofitsshortfallsandseemstobelearningfast.Currently,itplanstolaunchitsfullsuiteofadvertisingopportunitiesintheIrishmarketinthesecondquarterof2020.Werecommendacautiousapproachtoensurethattherequisitebrandsafetycontrolsareinplacebefore

committingtoanyadvertisinginvestment.However,thisisaplatformtowatch.

REGULATORY CONTROL AND MORE SCRUTINY

InApril2019,atFacebook’sF8developerconference,innovationwasde-prioritisedinfavourofstructuralchangesregardingprivacy.Facebooktriedtobattlethenegativeperceptionofitsdatapoliciesbyfocusingmoreonconnectinguserswiththeir‘closefriendnetworks’acrossitsplatforms.Facebookhasalsobeenonapublicitydrivetoeducateusersonhowtomanagetheirprivacysettings.

MargretheVestager,theEuropeanCommissionerforCompetition,recentlyannouncedshewillincreaseherfocusonregulatingthetechindustry.Sheistakingstepstospeedupinvestigationsandisapplyingararelyusedruleknownas‘interimmeasures’,thatactsasa‘ceaseanddesist’orderforcompaniestostopcertainbehavioursduringanyinvestigations.ThismeansthatVestagerwillnothesitatetoactinafastandeffectivemannerwhencompetitionrulesarebroken.Largefinesareinevitable.

TheincreasedfocusonregulationcouldimpactFacebook’splantomergeallthreeofitsplatformsundertheone‘messenger’umbrella.MarkZuckerberghasalwaysenvisionedreplicatingtheChineseappWeChat,withFacebook,InstagramandWhatsAppallcomingtogetherinoneapplication.IfVestagerhasherway,this‘super-app’mightnothappen.

Formarketers,increasedandtightermeasuresmaymeanareductioninadvertisingopportunitiesovertime.

Withthe2020USelectionslooming,manypublicfigurescontinuetoquestionFacebook’sroleindemocracy.Brandsshouldremainwatchfulofhowtheplatformevolvesin2020andtheirdecisionmakingshouldbeagile.

FACEBOOK’S VIDEO STANDARDS NEED TO EVOLVE

In2017,Facebook’sQ2earningsreportindicatedthattheplatformwasrunningoutofadspaceinitsnewsfeed.Atthetime,thiswasdeemedasignificantissueforthecompany.Forthefirsttimeinitsshorthistory,growthinadspendwasslowing.

ThefirstsolutionwastoallowbrandstobuyadvertisingthroughacombinedFacebookandInstagramadplatform.

Thismadeiteasierforadvertiserstoruncampaignsacrossbothplatforms,whichwouldultimatelyresultinInstagram’srevenuegrowingbyamultipleoffour(since2017)to$14billionin2020.1

In2020,Instagramisexpectedtoaccountfor30%ofFacebook’soverallrevenue.2OnceWhatsApp’slong-awaitedadofferingislaunched,weexpectittobeintegratedwiththecombinedFacebookandInstagramadplatform,whichshouldfacilitatestrongrevenuegrowthforthemessagingapp.

Facebook’sseconddecision,tomovetoa‘videofirst’model,changedthebusinessforever–andledittobecomeoneoftheworld’slargestcommercialonlinevideoplatforms.In2019,mostofFacebook’srevenuecamefromvideoformats.3

Today,thebigissueforthecompanyisthequalityofconsumerinteractionwithvideoadsontheplatform.

IfFacebookistocompeteeffectivelyinthelongrun,itsapproachtovideoneedstoevolve.

Adsaremuted,meaningusersmustengagewiththecommercialtohearthecontent(subtitlesareessential).Viewabilityisquestionable,asusersscrollquicklypastthecontentbeforeitevenloads.Theresultofthisislowerviewingcompletionrates.

Despitethis,Facebookstillearnsenormousrevenuefromvideoadvertising,becausetheaboveissuesareoffsetbythesheerscaleofitsplatforms’reachanditstargetingcapabilities,whicharestillstreetsaheadofthecompetition.

IF FACEBOOK IS GOING TO COMPETE EFFECTIVELY IN THE LONG RUN, ITS APPROACH TO VIDEO NEEDS TO EVOLVE.

1.InstagramUserGrowthintheUSWillDroptoSingleDigitsFortheFirstTime,eMarketer,January2020

2.Instagramrevenue,Statista,20193.Coreestimates,20194.TikTokClocks1.5BillionDownloads,SensorTower,November2019

5.GlobalWebIndex,20196.SocialNetworkingTracker,Ipsos,December2019

25

ERA,CHALLENGES

Thenextdecadepresentscountlessexcitingopportunitiesforaudioandallsignspointtothetransformationofitsroleinthemedialandscape.Whilewearenotyetanaudio-firstsociety,aboomingaudiolandscapeawaitsus.

SincethearrivalofApple,brandshavelargelyfocussedonvisualidentitiesinamulti-screen-dominatedera.Thenexttrendwillbethescienceofsoundwithadistinctfocusonsonicidentities.

Aninterestingquestiontoconsidernowisnotwhatyourbrandlookslike,butwhatdoesyourbrandsoundlike?Consumerbehaviourischangingatanunprecedentedrate,andas‘voicesearch’growsstronger,brandsmustoptimisealltouchpoints.

Today,Irelandcontinuesitsloveaffairwithaudio,with3.15millionadultlisteners(81%)tuningintoradioonatypicalweekday.1

Evenamongstthemorevolatileandharder-to-reach15-34-year-oldmarket,71%listendaily.2However,evenwiththesestrongaudiencefigures,itisfairtosaythatradio,oraudioaswenowknowit,doesn’tcommandenoughattentioninthemarketingmix.

Ifwetakeradioinisolation,theseareimportantstatistics,whichdemonstratethateveninamarketwithsomanyemergingandgrowingmediaplatforms,traditionalmediacanstillcommandaudienceattention.

Fiona Field Deputy Managing Director MEDIAWORKS

AUDIO

26

CREATIVE INVESTMENT

Investinginthecreativeprocessisanabsolutemustforradioadvertisingtoachieveitspotential.Thiscanonlybeachievedbyplayingtothestrengthsofthemediumbyusingtherightstory,soundandproductionelements.

Itisfairtosaythatwhilevideoiscertainlynotkillingtheradiostar,thecontinueddominationof‘termsandconditions’inadvertisingandbelow-standardproductionvalueshavecastashadowoverthepowerandpotentialofradio,particularlyintermsofcreativity.

Radioranksasthesecondmostpowerfulmediumintermsofitsabilitytotriggerapositiveemotionalresponse,andanopportunityexiststounlockthispotentialthroughcreativity.3

SONIC IDENTITY AND AUDIO STRATEGIES

Ifthelastdecadewasdominatedbyvisualidentity,thenextdecadewillplacealargefocusonaudiostrategiesandsonicidentity,notleastbecauseofthegrowingpartmusicplaysinthelivesofourGenZconsumers,theriseinvoicesearchandthepowerofaudio.

Thesmartbrandswillpayattentiontotheirsonicidentityandhowthisscalesacrosseverytouchpoint,fromtheircallcentrestotheirradioadstotheirbrandedaudiocontent.

Mastercardisacaseinpoint;havingdroppedtheword‘Mastercard’fromitslogo,ithassinceunveiledanewsonicbrandidentitytoleveragetheconnectionbetweenthebrandandtheconsumer.HSBChasdonethesame;itcommissionedJean-MichelJarretocreateanewmelodythatwouldmakethebank’scommunicationsinstantlyrecognisable.Furthermore,BMWpaidOscar-winningfilmcomposerHansZimmertodesignthesoundofitsotherwisesilentelectricvehicles.

ENVIRONMENT IS KEY

Moretechnology,moretargetingopportunitiesandmorepersonalconnectionsallpointtoagrowingneedtodevotemoreattentiontoleveragehowpeoplelisten,withamessagethatfitstheenvironment.

Toooften,advertisersapplyaone-size-fits-allapproachtoaudio,andtheyriskirritatingtheiraudience.AUSstudyin2019showedthataudioadsonmusicstreamingservicesorpodcastsrankedasthethirdmostannoyingelementwith47%agreeing.4

Advertisersmustpayattentiontohowandwheretheconsumerlistensandserveaudiothatiscomplimentaryratherthandisruptive,payingparticularattentiontothefrequencyatwhichitisdelivered.

MEASUREMENT OF DIGITAL AUDIO

Whilethenumberofpodcastsavailablecontinuestogrow,audiencesremainrelativelylowcomparedtootheraudioformatsandtheresearchvaries.In2019,JNLR(JointNationalListenershipResearch)reportedthat9.3%ofadultsinIreland‘listenedtoanymusic/audiofromapodcastinthelastweek.’5

Likeotherdigitalplatforms,therearesignificantchallengesinrelationtomeasurementofdigitalaudio.Mostplatforms

nowallowthirdpartyverificationofadvertising,butmarketersareunabletoindependentlyverifyactuallistenstosponsoredaudioorvideocontent.

Allplatformssitbehindwalls,meaningtheyself-reporttheiraudiencenumbers.Thiscontrastswiththeradioindustry,whichhastheJNLRtoverifylistenershipacrossallstations.

Digitalisrifewithcontroversiesaroundself-reporting,so,forthisindustrytogrow,anindependentbodyortoolneedstobecreatedtoaddressthelackoftrustthatcurrentlyexists.

MAXIMISING POTENTIAL BEYOND AUDIO

Pushingtheboundariesofradioisexcitingandisnowstartingtogaintraction.2FM’sfirstlivebreakfastbroadcastsimultaneouslyshownontheRTÉplayerwasevidenceofthis,andthemagictrulyhappenswhenthemediaowner,clientandagencycollaborate.Butwhatnext?

Astheaudiomarketchanges,wemustconsiderhowdigitalaudioadsshouldevolve.OnesuchinnovationistheShakeMe™format,whichinviteslistenerstoshaketheirphonesinordertopursueanactionrequestedintheaudioad(suchasacoupon,testdrive,furthercontent).

Clevertechnologysuchasthisenablesconsumerstoengageeasilywithapositiveexperience.Otheremergingaudioformatsnowhavethefunctionalitytomarryadvertisingwiththeperson’sindividualmusicpreferences.

Audioisundergoinganinterestingtransformation,andwhilewemustembracenewtechnologiesandcontinuetotestandlearn,wemustalsorememberthoselargeaudiencesthatradiostationscontinuetodeliver.

Wemustconsiderhowpeopleinteractwithdigitalaudioandusecomplementarymethodstoengage,ratherthandisrupt(andpossiblyirritate)listeners.

Asaudiocontinuestoevolve,thistransformationpresentsnewopportunitiesforbrandstocapitaliseontheirpoweranddevelopaudiostrategiesandcontentthatplaytotheemotionalimpactofthemedium.

DIGITAL IS RIFE WITH CONTROVERSIES AROUND SELF-REPORTING; AN INDEPENDENT BODY OR TOOL NEEDS TO BE CREATED TO ADDRESS THE LACK OF TRUST.

1.JNLRJanuary–December20192.Ibid3.Re-evaluatingMedia,Ebiquity,2018

4.BizrateInsights,eMarketer,July2019

5.JNLRJanuary–December2019

27

Fromcompulsoryredundanciestothecontinuedchallengeposedbydecliningprintrevenues,2019wasadifficultyearformanyIrishpublishers.

Despitethis,theindustrycontinuestoexcelwhereitmatters–inproducingqualityindependentjournalism-asevidencedbytheworkcelebratedattheannualNewsBrandsIrelandJournalismAwardsinNovember.Thewinningworkhighlightedtheimportantimpactthatgreatqualityreportingandwritingcandeliver.

Thisyear,theawardscategoriesalsoshowcasedexcellentoutputacrossdigitalchannels.Therecognitionoftheimpactofdigitalformsofjournalismisimportantandwillbeintegraltotheindustry’ssurvival.

Forinstance,intheUK,theGuardianannouncedin2019thatitmadeanoperatingprofitforthefirsttimeintwodecades,withitsrevenuegrowthattributedtofactorsincludinganincreaseindigitalrevenuesandincreasedreadercontributions.

I D P N E T N E E D N

F RE

THE VALUE

OFA

AND

PRESS

Hannah-Louise Dunne Head of Content Partnerships CORE

NEWSMEDIA

28

Globally,TheNewYorkTimeshassetastandard.ByclearlyshowcasingthevalueofitspremiumqualityreportingintheTrumpera,itnowhas5.25milliondigitalandprintsubscribersinachallengingadvertisingrevenuemarket,justoverhalfwaytoitsdigitalsubscriptiontarget.6

Withameteredpaywall–readersareallowedaccesstoacertainnumberoffreearticlesonlineeachmonth–TheNewYorkTimes’soutputhasevolvedbeyondtheboundariesoftraditionalnewsjournalism,andnowincludesprojectssuchasheavily-subscribedpodcasts,docuseriesandinvolvementinfeature-lengthdocumentaries.

AcrosstheIrishnewssector,TheIrishTimes,TheBusinessPost,TheCurrencyandIndependent.ie–withitsrecentlaunchofasubscriptionmodeltoaccesspremiumcontent–areamongstthepublicationscommittedtogrowingtheirrespectiveaudiencesofdedicatedpayingdigitalsubscribers.Inthesetransformativetimes,successwillrequirecommitment.

Newspublishersmustinvestintestingdifferentwaysoftellingstoriesandreachingaudiences.Whatevertheform,quality

mustbeimbuedthroughouttheoffering,withsharpjournalisticinstincthonedandtranslatedacrosseverytouchpoint.

Thisyear,debatearoundpublicinterestjournalismmustamplify.Premiumservicesarelikelytoattractasmallerdedicatedaudienceofreadersandwillrequireconsiderableinvestmenttosucceed.Asaresult,itislikelythatnewsorganisationswillhavefewerresourcestoinvestinstoriesofnationalimportance,andthesestoriesmaynotbeavailabletoall.

Whothenwillfundpublicinterestjournalism?Currently,thisresponsibilityissharedbetweenourpublicservicebroadcasterandtherestoftheindustrybutwillrequireconsiderableinvestmenttocontinue.IntheUK,TheCairncrossReviewmaderecommendationslastyear,coveredinOutlook2019,whichincludedacallfordirectsupportfromGovernmenttofundpublicinterestjournalism.

HereinIreland,wehavealsocalledforasimilarreview.Bigtechplayerswhobenefitfromtrafficgeneratedbyexcellentjournalismmustdomoretosupportthispartofthe

industry,particularlyinlocalnewsorganisations.

Finally,theadvertisingindustryalsohasaroletoplay,andshouldcontinuetosupportthenewssectorthroughappropriateadvertisinginvestmentandadriveforexcellenceintrustedbrandedcontent.

Insum,whilethefutureisyetunwritten,theoutcomewilldependonthededicationofboththewidermediasectorandreaderstovalueandrespectthepoweroftrulyvaluablejournalism.Thenewssectorinturnmusthonourthisbydeliveringquality,incisivejournalismacrosseveryaudiencetouchpoint.

Oneoftheearlyadoptersofdigitalasaplatformtoextenditsjournalisticoutputs,theGuardianmaintainsastrongfocusonleveragingdigitalandsocialtoengagereaders.

TheGuardian’sapproachhaspaidoff;inanAugust2019report,itrevealedthatUKprintadvertisingaccountedforjust8%oftotalincome.1WhileanearlierreportinMay2019revealedthepublicationhas655,000monthlysupportersacrossbothdigitalandprint–withanadditional300,000peoplemakingone-offcontributionsinthelastyear.2

Thisishearteningnewsandshowcasestheimpactwhenreadersrespectandrecognisetheimportanceofexcellentjournalism.

Ina2018pieceinTheWashingtonPost,whichdiscussedthefutureofprintjournalism,DouglasMcLennanandJackMileshighlightedtheconsequenceofafuturewheretheimportanceofanindependentpressthatfocuseson‘bootsontheground’journalismisnotrecognised.3

Withlocalnewspaperslesssuccessfulindrivingrevenuefromdigital,thewritersvoicedconcernforafuturewhere

smalleroperationsclose,leavingstoriesthatchallengecontemporarysocietyandpoliticsundiscovered.

HereinIreland,publicinterestreportinghasshonealightonstoriessuchastheTuamMotherandBabyHomescandalandcorporategovernanceissuesattheFAIinrecentyears.Clearly,theIrishnewsmediasectorplaysacrucialroleininformingIrishpeopleofimportantissuesthroughdigital,printandsocialchannels.

Currently,audienceinterestinnewsremainshigh.ResearchconductedinDecember2019byCorerevealedthatnewsisofkeeninteresttoIrishadults,with55%ofparticipantscitingitasoneoftheirtopthreeinterestareas.4

Butwidespreaddebateandcoverageofthefakenewsphenomenonhashadanimpact.Trustinreportingoffactsacrosswebsitesislowwith44%ofpeoplesurveyedindicatingconcernaroundthis.

However,informedcontentappeals.60%ofIrishadultssurveyedconfirmedtheystillreadlong-formcontentwhenatopicisofinteresttothem.

Trustandqualityarepoisedtotakecentre-stageinthefuture,aspublishersfocusonintegratingdigitalattheheartoftheiroffering.

Acrosstheworld,acautiouslyoptimisticmoodisevident.IntherecentReutersJournalism,MediaandTechnologyTrendsandPredictionsreport,73%ofrespondentssaidthattheyfeelconfidentabouttheircompany’sprospectsin2020.5Butthereisarecognitionthatthefuture–andpresent–willlookverydifferenttothepast.

Whileprinttitlesremainanimportantadditiontothesector,sustainedfuturegrowthliesinastreamlineddigital-firstoperation.Andherethechallengeistwofold.

Firstly,todriverevenuesuccessfullyacrossdigital,publishersmustshiftgearsandmovefromgeneratinganendless24/7contentcycleto,insteaddeliverapremiumofferingforreaders.

Secondly,readersmustinturnseethevalueinthiscontentandevenmore,bewillingtopaytheprice.

TRUST AND QUALITY ARE POISED TO TAKE CENTRE-STAGE.

1.GuardianBrokeEvenLastYear,ParentCompanyConfirms,TheGuardian,August2019

2.GuardianBreaksEvenHelpedbySuccessofSupporterStrategy,TheGuardian,May2019

3.AOnceUnimaginableScenario:NoMoreNewspapers,TheWashingtonPost,March2018

4.CoreResearch,December20195.DigitalNewsProject,ReutersInstituteandUniversityofOxford,2020

6.TheNewYorkTimesTops5MillionSubscriptionsasAdsDecline,NewYorkTimes,February2020

29

Aileen McDaid Director of Digital Planning SPARKFOUNDRY

Theyearis1994andapluckyupstartofadigitalbanneradboldlyasksinternetusers,‘Haveyoueverclickedyourmouserighthere?–YOUWILL!’Atthesametime,itsdistantcousin,theoutdoorbillboard,sitsstoicandcalmwithouttoomanytricksupitssleeve.

Fastforward26years,andthesedistantrelativescouldbemistakenfortwinsduetoallthestrikingsimilaritiestheynowpossess.Bothmediahavearangeandcomplexityofspecs.Thereareover40sizesofonlinebannertochoosefrom,butout-of-home(OOH)trumpsthiswithawhopping

84differentformatsduetothewiderangeofstandard,digitalandambientdisplaysavailable.1

Inadditiontotherangechallenge,thereisamismatchbetweenperceptionandrealitywhenitcomestohowquicklyOOHanddigitalbannerassetscanbeimplemented.

Thereisaperceptionthatanythingdigitalcanbeimplementedimmediately;however,thelayersoftrackingandtestinginvolvedtodayhaveswollenlead-timesfromhoursintodaysinsomecases,withthelikesofYouTuberequiring72hoursforitsowncopyreviewprocessalone.

AnadditionalsimilaritybetweenthesemediaisthatneitherOOHnordigitalbannershaveacaptiveaudience.‘Bannerblindness’emergedasanissuewithonlineadvertisinglessthanfiveyearsaftertheintroductionoftheformat.

ThesamecanbesaidofOOHwheretheaudienceisliterallytravellingpasttheadvertisements,oftenwiththeirattentionfocusedontheirsmartphones.

OUT-OF-HOME

30

A DRAFT EU PAPER PROPOSES A BAN ON THE USE OF FACIAL RECOGNITION IN PUBLIC PLACES FOR UP TO FIVE YEARS.

LOCATION, LOCATION, LOCATION

Forallthesimilaritiesthatmakethemcomplex,therearealsosimilaritiesthatbindthesemediaintheireffectiveness.Outdooristheultimatelocation-basedmedium,butwhenlocation-basedoptionsbecameavailableonlinethroughIPanddevicetargeting,thisbecameaneffectivenessgamechangerfordigitalbannersonmobiledevices.Proximitytargetingcreatedsynergiesbetweenthetwomediaatthispoint,while‘quickresponse’(QR)and‘nearfieldcommunication’(NFC)technologybroughtthemclosertogether.

CHALLENGES TO OVERCOME

OOHhasalwayshadamajoradvantageoverdigital;itisinthephysicalworldandcanbeheldtangiblyaccountable.ButwiththeadventofdigitalOOH,theproportionofdigitisedinventoryisexpectedtoincreaseto30%ofOOHrevenuein2020intheRepublicofIreland.2

Nowthatfixedpostersitesarestartingtobeconvertedtoscreen-basedadrotationdisplays,thereisaneedforthesedigitalOOHunitstoembracethesameaccountabilityrequirementsasonlineadvertising.

Websitebanneradshavebeenchallengedbyquestionablevisibilityclaimsinthepast,and,tocombatthis,viewabilityisnowastandardmetricindigitalbuying.Todate,thestandardforOOHreportinghasbeensurvey-based,somodernisationisneeded.

THE FACIAL RECOGNITION DEBATE

TherelaunchoftheJointNationalOutdoorResearch(JNOR)willbringsomeimprovementinthemetricsassociatedwithOOH,butotheroptionssuchas‘Glimpse’and‘Quividi,’whichuseliveimagerecognitiontoquantifyviews,arealsoavailable.

Therearesomeexamplesofimpactfulusesofthistechnologyinadvertising;themostfamousbeinga2015campaigntoraiseawarenessofdomesticviolenceintheUK.

Thecampaignwascalled‘lookatme.’Theposterdepictedawomanwithabruisedfacethatactuallychangedandhealedaspassers-bystoppedandlookedattheimage.Theposterusedfacialrecognitiontechnologytonotewhenpeoplepaidattentiontotheadandgraduallyalteredtheimageasthenumberofpeopleincreased.

Thistypeoftrackingisnotonlyusefulinquantifyingaudiencenumbers;itcanalsobeusedtopersonaliseadvertising,anditisthisuseofbiometricdatathathascausedmuchdebate,becauseitinvolvestheuseofourfacestoestimateourage,genderandwhetherwearehappyorsad.Thisraisesobviousethicalconcernswhichdeserveourattention.

Theuseofimagerecognitiontechnologyinoutdooradvertisingisenticingformarketers,butweneedtoexercisecaution,whichiswhythecurrentprovidersinsistitis‘facialdetection’asopposedto‘facialidentification’technology.

Thisisimportantnotjustbecauseofbasicprivacyconcernsbutbecauseofclaimsthatthetechnologyisinherentlybiased;forinstance,ithasbeenshowntobeproblematicwhendistinguishingraceandgender.3

Naturally,theindustryisalwayslookingforthe‘nextbigthing’toboostadrevenueandultimatelyincreaserelevance,whichinturnreduceswasteofadspend.Thisisunderstandableinanuncertainadvertisinglandscape,butregulationofthistechnologyisessential.EvenMicrosoftsupports‘agovernmentinitiativetoregulatetheproperuseoffacial-recognitiontechnology,informedfirstbyabipartisanandexpertcommission.’4

CompaniesthatuseimageprocessingwithdigitalOOHclaimcompliancewithGDPR,becausenoimagesarerecorded,butgiventheuncertaintieswiththistechnology,weshouldtreadcarefully,andthisviewseemstobegrowinginEurope.AdraftEUpaperonthesubjectproposesabanontheuse

offacialrecognitioninpublicplacesforuptofiveyearswhilepolicymakersgettogripswiththetechnology.

BLENDING THE TWO

Inthemeantime,digitalOOHallowsforampleopportunitytobuyeffectivelyandefficientlyviaothertechnologicalmeans.Thereispotentialtoincreasetherelevanceofadvertisingthroughdatathatcanbeuseddynamicallytofuelcreativethattriggerscopychangestoreflectthetimeofday,dayofweek,changesintheweather,breakingnews,etc.

However,wemustnotforgetthat70%ofsitesintheRepublicofIrelandarenon-digital,andtheseformatswillcontinuetodelivermostofthereachandimpactinthemediumterm.Therehasbeencontinuousinvestmentinupgradingoutdoorsitesinrecenttimes,includingthegrowthofbacklit48-sheetsandtheongoingredevelopmentofbusshelters.Thismeansthatthemediumhasneverlookedbetter.

Themediaplanner’sjobistoadviseclientsonthebestblendofthetraditionalandthenewtoachievetherightcombinationofreachanddynamism.

Ultimatelyhowever,itiscreativebraveryandanintricateknowledgeofhowtouseeachformatthatdeliversrealsuccess.Thesetooarequalitiesthattheonlineandout-of-homeworldshaveincommon.

1.PML,20202.Ibid3.TheMajorConcernsAroundFacialRecognitionTechnology,Forbes,September2019

4.FacialRecognitionTechnology:theNeedforPublicRegulationandCorporateResponsibility,Microsoft,July2018

31

Inthepasttenyears,thenumberofletterspeoplereceiveinIrelandhasfallenbyhalf.1Despitethis,oneaspectofcustomerbehaviourhasbeenrevived–theanticipationofreceivingapostaldelivery.Whilecustomersmaynowreceivefewerbirthdaycardsorbillsinthepost,therehasbeenasignificantincreaseinreceivingpackagesandparcels,asonlineshoppinggrowsinpopularity.

Attheendof2019,AnPostreportedthatthenumberofparcelshandledbythecompanyhadincreasedby40%sincethepreviousyear.1

Thisincreasereflectsthemassadoptionofonlineshopping,witheverythingfromclothestoshavingsoapincreasinglyboughtonline.Peoplenowlookforwardtoopeningtheirpost-boxesanddoorstoreceivetheseitems.

Duringthesameperiod,useofdigitalcommunicationchannelsgrewexponentially,andmanypredictedthedemiseofphysicalpost.However,whilepeoplemaynolongersendasmanylettersastheydidinthepast,thenextgenerationofcustomersstilllookforwardtoreceivingitemsinthepost.

Thisbehaviourhasevenledtoanewphenomenon–‘unboxing.’YouTubeispopulatedwith‘unboxing’videos,wherepeopledocumentthemselvesopeningapackagefromaboxandthendisplaying,reviewingandshowingoffitscontents.

84%ofUSadultsunder40yearsofageclaimthey‘taketimetolookthroughtheirmail,’oftenanticipatingthearrivaloftheirmostrecentonlinepurchase2.Thismoment,inthehome,isaprimepointtoengagecustomers,butwhenbrandsusedirectmailtheymustactwithrelevance,respectandtheymustdelightthecustomer.

Emer Lawn Deputy Managing Director STARCOM

PEOPLE ARE

LKINGFORWARDTO RECEIVING POSTAGAIN

DIRECTMARKETING

32

Unlikeothermassmedia,directmarketingcanbeusedasanarrowchannel.Datasets,includingMosaic,CSOandgeo-locationcanprovidenicheregionstotarget,whichmayrequiredifferentinsight-ledmessagingtoensurethebrand’srelevancetodifferenttypesofhouseholds.

Thesecondpointtoacknowledgeisrespect.Giventhatpeoplelookforwardtopostanddeliveriesthattheyhaverequestedandboughtonline,itiskeythatbrandsrespectthatdirectmailgoesintosomeone’sprivatehome.

Languageandimageryshouldbesensitivetoachildpotentiallyopeningthepost-box,callstoactionshouldbeunderstandableandpractical,andanypersonalisationshouldbeatanappropriatelevel(e.g.householdtype)andnotseemlikeBigBrotheriswatching.

CONSIDERATION IS REQUIRED

AsoutlinedinOutlook2019,GDPRensuredthatcustomershavegreaterprotectionovertheirprivacyanddatainrelationtodirectmarketing.Thisalsomeansthatmarketersshouldbefarmoreconsiderateofthereasonswhytheyengageindirectmarketingefforts.

Formarketingagencies,thisfocusesgreaterattentiononcreatingthebestcustomerexperience,butmarketersmusttakecarenottointrudeontherecipient’smostpersonalspace–theirhome.

Unlikedigitalexperiences(whichareoftenmobile),directmarketersarevirtuallyguaranteedthattheitempurchasedonlinewillbeopenedinthehome,aplacewherecustomersaremostrelaxedandcomfortable.

AneurosciencestudycarriedoutinCanadarevealedthatunlikedigitalstimuli,directmailrequireslesscognitiveefforttoprocess–itiseasierforrecipientstounderstandthekeymessages.3Thesamestudyalsohighlightedthatphysicalstimuli,thatengagemultiplesenses(e.g.ascentedenvelope),canincreasethelikelihoodoftherecipienttakingaction.

Awell-executeddirectmarketingexperiencecanhavegreatimpactonthepotentialcustomer,whileproducingastrongreturnforthesender.

Takeforexamplethenot-for-profit(charity)sectorinIreland,wheredirectmarketingisusedtogreateffect.Accordingtothe‘2into3FundraisingPerformanceReport,’€25ofevery€100raisedinfundingcomesthroughdirectmarketingactivities.

AccordingtoresearchcommissionedbyCharitiesInstituteIreland,directmailisthebestwaytomakedonors‘feelvalued,’with27%ofpeoplesayingtheywouldsignuptoadirectdebitifcontactedbydirectmail.4

Thissectorunderstandsthatdirectmail,whereexecutedeffectively,cancommunicateanemotionalstoryaboutthecause,presentthevalueoftheorganisation’sworkandmotivatethereceivertosignupasaregulardonor.

Fororganisationsandbrandsinvestingindirectmarketing,therearethreeareastoconsiderwhenplanning.Thefirstisrelevance.

REMEMBER – MAIL CAN DELIGHT THE RECEIVER

Lastly,agreatdirectmarketingcampaigncandelighttherecipient.Thecreativeteamworkingontheoverallbrandordirectresponsecampaigncanbringanideatolifeinpeoples’handsandhomesinavarietyofways.

Frompop-upcardstoanunboxingexperience,creativeteamsnowcompeteoverparcelsthatpeopleareexcitedtoreceive,andthereforethechallengeistostandoutanddelight.

Likeallmarketingchannels,planningformeasurementiskey.Usinguniquephonenumbers,websiteURLsoractivationcodescanhelptotracktheeffectivenessofdirectmarketinginvestment.

Finally,in2020,insteadofviewingdirectmailasawaytoreachcustomers,itistimebrandsuseitasanopportunitytostartarelationship.

Integratingdigitalelementssuchasuniquecustomerwebexperiencesandcustomerrelationshipmanagementtools(e.g.IntercomorHubSpot)

willmovedirectmailintothefuture,ensuringalong-termcustomerrelationshipratherthanaone-offtransaction.

1.PacktotheFuture,fora.ie,December2019

2.ALookatHowMillennialsRespondtoDirectMail,USPostalService,2017

3.ABiasforAction,CanadaPost,2015

4.DonorInsights,CharitiesInstituteofIreland,March2017

ANTICIPATION HAS LED TO A NEW PHENOMENON – ‘UNBOXING.’

Core’sentryintheAnPostDirectChallenge2019

33

Despitestrongforecastsforthenationaleconomy,weexpectanotherchallengingyearforthemediamarket.Weanticipatethattheshort-termandvolatilenatureofadvertisinginvestmentwillcontinue.Ourforecastsdonottakeaccountofthecoronaviruscrisis,becauseitistooearlytounderstanditspotentialimpact.

IrelanddoesnotenjoythegrowthlevelsinadvertisinginvestmentexperiencedbyothercountriessuchastheUSandUK.ThosemarketsbenefitfromsubstantialspendbythetechgiantsincludingFacebook,Amazon,AlphabetandNetflix.

Itisthisactivity,plusinvestmentfromothermajorinternet-reliantbrands(likecomparisonandbookingwebsites)thatcontributetogrowthlevelsintheselargermarkets.

AttemptstounderstandthesizeoftheIrishmediamarketandtrackanytrendsremaindifficult,withverydifferentnumbersreportedacrossthemarket.Lastyear,wetookpartinanindustryinitiativetoimprovewaysofmeasuringinvestment,butitdidnotbuildthenecessarymomentum.

Wehaveinvitedtheindustry’srepresentativebody(IAPI)tore-establishthiscommitteein2020sothattogetherwecancreateamoreformalframeworkfortrackingadvertisingspend.

Asreportedinlastyear’sOutlook,wedonotsuggestthattheadvertisingrevenueofeachindividualmediaownerbepublished–thatisunnecessary;whatisnecessaryisanaccuratebreakdownoftotalspendbymedium.

Anindependentthirdparty(i.e.,anaccountancyfirm)couldfacilitatethis,whileprotectingtheconfidentialityofcompany-levelinformation.

Anindustry-widepushtoaddressthisissuewouldprovideareliablevaluationofthesizeofthemarketandwouldbeanimportantproofpointoftransparencyandcooperationatatimewhentrustinthemediaindustryisatalowebb.

Eddie O’Mahony Chief Investment Officer COREINVESTMENT

Colm Sherwin Managing Director COREINVESTMENT

INVESTMENTADVERTISING

IRELAND DOES NOT ENJOY THE SAME GROWTH LEVELS AS THE US AND UK.

INVESTMENT OVERVIEW

1037.9

210.6

210.3

215.6

2018

1051.72019

1069.8

2020 (F)

ROI NITotal Spend (€M) Source:CoreEstimates

IncludesmediasponsorshipsandexcludesdirectmarketingAverage2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

INVESTMENT

34

WE EXPECT TOTAL MEDIA SPEND IN THE REPUBLIC OF IRELAND TO GROW BY 1.7% TO €1.07 BILLION IN 2020.

SPENDTOTALMEDIAAccordingtothelatestCentralBankquarterlybulletin,theIrisheconomygrewby5%in2019.1However,thisperformancedidnottranslatetoabuoyantmediamarket.Weestimatethattheoverallmarketincreasedbyjustover1%,recordingaspendof€1.052billion.

WhileBrexitconcernshaveeasedsomewhat,webelievethatthemediamarketintheRepublicofIrelandwillremainsluggish,withgrowthofjust1.7%to€1.07billionin2020.

Ashasbeenthetrendoverthelastnumberofyears,onlinespendwilldrivethisgrowth.Theofflinesegmentofthemarketwilldeclineagainin2020,falling4.1%to€503million.

NorthernIrelandexperiencedaslightdeclineinexpenditurein2019.Weestimatethatoverallinvestmentfellbyjust0.2%to£184.6million(€210.3m).

Growthwillreturnthisyear;governmentspendingaccountsfor50%ofthemarket,andtherecentresolutiontothepoliticalimpassewillhaveapositiveimpact.Weestimategrowthof2.6%to£189.3million(€215.6m).

Itshouldbenotedthatifthecoronaviruscontinuestogathermomentumitwillputdownwardpressureonthisandallotherforecasts.

35

1.Q1Bulletin,CentralBank,2020

TELEVISION

2019wasatoughyearfortelevisionrevenue.Spendfellby4.7%to€210.9million.Thisdeclinewasdrivenbyspotadvertising,whichcontractedforthesecondyearinarow.Anincreasingshareofbudgetsfollowedaudiencesontoonlineplatforms,andthatwasthekeyfactorbehindthedeclineinspend.

Weanticipatethattelevisionadvertisingrevenuewilldeclineby2.5%in2020to€205.6millionintheRepublicofIreland.TVwillcontinuetocommandasignificantshareofbudgetsforthetopbrands,butfallingaudiences,inflationandchangingconsumptionpatternswillputdownwardpressureonrevenuefortheforeseeablefuture.SpendwillcontinuetomovetoonlinevideoandtoFacebook,InstagramandYouTubeinparticular.

InvestmentinTVinNorthernIrelandalsofellin2019.Itdroppedby3%to£75.0million(€85.4m).

ThiswasslightlydeeperthanthedeclineintherestoftheUK,whichsawTVrevenuefallbyjustover1%lastyear.For2020,weforecastslightgrowthinTVrevenueforNorthernIreland,increasingby1%to£75.7million(€86.3m).

ONLINEVIDEO

TheonlinevideomarketcontinuedtoperformverystronglyintheRepublicofIrelandlastyear,increasingby24.5%to€139.4million.Facebook,includingInstagram,accountsforthreeoutofeveryfourEurospentononlinevideoadvertisingintheRepublicofIreland;itsrevenuehasalmostdoubledtoanestimated€105millionoverthelasttwoyears.ThisisdespiteFacebookhavinghigher‘muterates’andlowerviewer‘completionrates’comparedtoothervideoplatformssuchasbroadcasterplayers.Weexpecttoseecontinuedgrowthin2020,andwepredictanincreaseof19.6%to€166.7million.GrowthlevelsforIrishbroadcasterplayerswillberestrictedagainin2020astheystruggletomeetthedemandforinventoryinthemarket.

2018

2019

2020 (F)

ROI NITotal Video Spend (€M)

INVESTMENT OVERVIEW

Source:CoreEstimatesAverage2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

221.2 112.0 7.4

88.1 17.6 1.7

210.9 139.4 7.6

85.4 20.4 1.7

205.6 166.7 7.6

86.3 23.4 1.8

TV Online Video Cinema

OnlinevideoadvertisingrevenuesinNorthernIrelandareonasimilartrajectorytotheRepublicofIrelandandUKmarkets.In2019,revenuesincreasedby15.6%to£17.9million(€20.4m).Weexpectthat2020willagaindeliverstrongdouble-digitgrowthof14.7%to£20.5million(€23.4m).YouTubeandFacebookwillcontinuetodominate.

CINEMA

2019wasabetteryearforcinemaintheRepublicofIreland.Advertisingrevenueincreasedby3.6%to€7.6million.Anincreaseinthebrandcountandastrongperformancebyseveralcategories,mostnotablythefinancialcategory,werethemajorfactorsbehindtheincrease.Weforecastthatrevenuewillremainflatin2020.

InNorthernIreland,themarketsawaslightincreaseinspendof1%to£1.52million(€1.73m)in2019.

Regarding2020,theJamesBondfranchise,whichwillreleaseitsnextinstalmentinApril,tendstobenefitfromadisproportionateboostincinemaadvertisingacrossBritainandNorthernIreland,becausebrandstendtosinglethismovieoutforattention.Therefore,weforecasta3%increaseinadspendto£1.56million(€1.78m).

TV SPEND IN THE REPUBLIC OF IRELAND COULD FALL BY 2.5% TO €205.6 MILLION

IN 2020.

VIDEOInvestment:

36

ONLINE

In2019,onlinemediaspendincreasedby7.8%to€526.9millionintheRepublicofIreland.Thisfigureincludessearch,social,classifiedanddisplayspends.Displayisacatch-alldescriptionforonlinevideo,(includingbroadcasterplayers),digitalaudio,email,textandnativeformats.

GoogleandFacebookcontinuetoincreasetheirshareanddominatetheonlinemediamarket.Weestimatethatadvertisinginvestmentlevelswiththesetwocompaniesincreasedbyaround7%and25%respectively,bringingtheircombinedrevenuefor2019toapproximately€425million.Thisrepresentedawhopping81%oftheonlinemarketand40%ofthetotaladvertisingspendintheRepublicofIrelandin2019.

For2020,weexpecttheonlinemarketwillincreaseby7.5%to€566.4million.Google’srevenuewillgrowbycirca6%.Thisisalowerrateofgrowththanpreviousyearsduetothematurityofitssearchbusiness.

Facebook,ontheotherhand(whichincludesInstagram),willcontinuetoseesubstantialgrowthin2020.Weforecast17%growthforthecompanyoverall.Video,whichnowaccountsformostofitsrevenue,isdrivingthisincrease.

ThedominanceoftheduopolyhasasignificantimpactonthebudgetsavailabletoIrishonlinepublishers.Weestimatethatthesliceofthedisplaymarket(includingvideoonthebroadcasterplayers)thatisavailabletoIrishpublisherswasworthjust€62.5millionin2019,andwebelievethiswilldeclineby7%to€58.1millionin2020.

InNorthernIreland,thelevelofonlineadvertisingwasworth£65.3million(€74.4m)in2019,anincreaseof6.1%on2018.Weexpectgrowthtocontinuein2020;totalonlinerevenueinNorthernIrelandisexpectedtohit£69.8million(€79.5m),anincreaseof6.9%.

2020 ONLINE SHARES

INVESTMENT OVERVIEW

488.8

70.12018

526.9

74.42019

566.4

79.52020 (F)

ROI NITotal Online Spend (€M) Source:CoreEstimates

Average2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

Search

Social

Display

ClassifiedNote: Online video spends (including broadcaster players) is captured in Social and Display. Video will account for 29.4% of total online advertising (€166.7m) in 2020.

ONLINE SPENDS IN THE REPUBLIC OF

IRELAND COULD INCREASE BY 7.5% TO €566.4 MILLION

IN 2020.

31.9%

48.8%

13.4%

5.9%

37

Investment:

In2019,theradiomarketcontinuedtofeelthepressure.Weestimatethatadvertisingrevenuesfellby6%to€110.5million.Asinpreviousyears,demandforradiosponsorshipassetsremainedstrong;itwasweakerdemandforspotadvertising,bothnationallyandlocally,thatcontributedtothedecline.

In2020,weanticipatefurtherdeclinesasinflationarypressuresinothermedia,suchasTV,willdrawrevenueawayfromradiotoshoreupvideoadvertisingbudgets.Therefore,webelievethatinvestmentinradioadvertisingwillfallby6.4%intheRepublicofIrelandto€103.4million.Digitalaudio(podcastsandonlinestreaming)isstillinitsinfancyandwillcontinuetogrow.Weestimatethatdigitalaudiowillbevaluedatapproximately€5millionin2020—anincreaseofover20%year-on-year.

ThemarketinNorthernIrelandcontinuestobenefitfromtheincreasedradiospendexperiencedacrosstheUKoverthelastfewyears.However,growthin2019waslowerthanoriginallyforecast.Weestimatethatthemarketgrewby1.2%to£14.5million(€16.5m).Thisreflectstheweaker-than-anticipatedperformanceintherestoftheUKwherespendonlyincreasedby2%in2019.Weforecastanincreaseofjustunder1%in2020to£14.6million(€16.6m).

AUDIOINVESTMENT OVERVIEW

117.6

16.32018

110.5

16.52019

103.4

2020 (F)

ROI NITotal Radio Spend (€M) Source:CoreEstimates

Average2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

RADIO SPEND IN THE REPUBLIC OF IRELAND

COULD FALL BY 6.4% TO €103.4 MILLION

IN 2020.

Note: Above spends are for radio only. Digital audio spends are captured in the online section of this report. See page 37.

38

Investment:

16.6

NEWS MEDIA

Therewasnolet-upinthedownwardpressureonadvertisingspendintheprintsectorlastyear.BothpartsofIrelandexperienceddouble-digitdeclinesinrevenueonceagain.

IntheRepublicofIreland,totalinvestmentinprintadvertisingfellby12.3%to€105.1million.Weestimatethatadrevenueacrossthenationaltitlesfellby11.9%to€85.3million.Thisperformanceiscompoundedbythelossofotherrevenuethroughfallingcirculationsandadigitalmarketthatwasflatyear-on-year.Weestimatethatdigitalrevenueswereintheregionof€24.5to€25.5millionlastyear.Theregionalprintmarketperformedmarginallybetter;butwebelievethatspendwasstilldownbycloseto10%.

TheUEFAEuropeanFootballChampionshipsandTheOlympicsmayoffersomeopportunitiestogeneratemuch-neededrevenuein2020.However,wepredictthattheRepublicofIrelandprintmarketwillcontractbyafurther12.3%to€92.2million,withnationalnewspapersfallingto€75.3million,adeclineof11.7%.

Printadvertisingrevenuesfellby11.4%to£11.6million(€13.2m)inNorthernIrelandlastyear.Wepredictfurtherdeclinesin2020,albeitataslowerrateasgovernmentspendingisexpectedtoimprove.Therefore,investmentinprintadvertisingislikelytofallby7.8%to£10.7million(€12.2m)intheNorththisyear.

INVESTMENT OVERVIEW

119.9

14.92018

105.1

13.22019

92.2

12.22020 (F)

ROI NITotal Print Spend (€M) Source:CoreEstimates

Average2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

PRINT SPEND IN THE REPUBLIC OF IRELAND

COULD FALL BY 12.4% TO €92.2 MILLION

IN 2020.

Note: Above spends are for print only. News media digital spends are captured in the online section of this report. See page 37.

39

Investment:

OUT-OF- HOME

IntheRepublicofIreland,theOOHmarketperformedstronglyin2019,recordinga9.3%increaseto€90.7million.DigitalOOHcontinuedtodrivedemandandaccountedforapproximately26%ofadvertisinginvestment,withaspendof€23.6million.Inadditiontothesignificantone-offspendbehindtheFreeNowrebrandlastsummer,thekeygrowthcategoriesincludedretail,foodandtelecoms.

Weareforecastingthattherateofincreasewillslowto4.1%in2020,deliveringaspendof€94.4million.ThePublicHealth(Alcohol)BillrestrictswhatOOHformatsthealcoholcategorycanuse.ThiscameintoeffectfromNovember2019.Itwillresultinlowerspendsforthecategoryandcontributetothelowergrowthlevelsweareforecastingfor2020.WealsoexpecttoseemoreofthealcoholOOHbudgetsmoveintodigitalpath-to-purchaseformatsthisyear.

Digitalwillcontinuetogrow,andweanticipatethatitsoverallsharewillincreaseto30%ofthemarketwithaspendintheregionof€28.3million.

TheNorthernIrelandOOHmarketin2019fellby2.5%to£16.7million(€19.0m).Adeclineinactivityfromtelecomsandenergyadvertiserswasanotablefactor.AsintheRepublic,thedigitalOOHmarketperformedwell.Itaccountedfor28%ofthetotalOOHspend.

WeexpecttheOOHmarketinNorthernIrelandtoreturntogrowththisyear,albeitataslowerratethanthelatestUKforecastsof3.2%.ThetotalOOHrevenuewillgrowto£17.0million(€19.3m),anincreaseof1.5%.LiketheRepublicofIreland,digitalOOH’ssharewillgrowtoapproximately30%thisyear.

INVESTMENT OVERVIEW

83.0

19.52018

90.7

19.02019

94.4

19.32020 (F)

ROI NITotal OOH Spend (€M) Source:CoreEstimates

Average2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

OOH SPENDS IN THE REPUBLIC OF IRELAND

COULD INCREASE BY 4.1% TO €94.4 MILLION

IN 2020.

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Investment:

SPONSOR SHIP

InvestmentintheIrishsponsorshipmarketcontinueditsupwardtrajectoryin2019butthepaceofgrowthslowed.BothmarketswereheldbackbyacautiousapproachtoinvestmentinthefaceofBrexitandothermacrofactors.

IntheRepublicofIreland,growthreducedfrom12.9%in2018to8%in2019.Weestimatethevalueofthemarketwas€188.9million.

TheNorthernIrelandmarketgrewby5%lastyearcomparedtotheforecasted6.6%.Theoverallspendwasapproximately£12.1million(€13.8m).

In2020,despitetheOlympicGamesandUEFAEuropeanFootballChampionshipstolookforwardto,weestimatethatthepaceofgrowthwillbesimilar,withan8.9%year-on-yearincreaseintheRepublicofIrelandto€205.7million.

LiketheRepublicofIreland,webelievethatthe2020growthlevelsinNorthernIrelandwillbeinlinewiththe2019numbers.Weestimatethattheoverallspendwillincreaseby5%to£12.7million(€14.5m).

2020willchallengemanyrightsholdersasbrandscontinuetoexercisecautionwhile,atthesametime,severalnewsponsorshippropertiesenterthemarket.TheFAI’schallengesaresettocontinueastheorganisationmustnegotiatetherenewalofkeysponsorships.

Onamorepositivenote,investmentinwomen’ssportwillenjoysignificantgrowth,furthercementingsport’sgeneraldominanceofsponsorshipfees.Weexpectanincreaseinvenue-namingrightsofferedtothemarketasIrishmarketersgetmorefamiliarwithhowtoexploitthissponsorshipasset,somethingatwhichtheUSmarketexcels.

INVESTMENT OVERVIEW

174.8

13.22018

188.9

13.82019

205.7

14.52020 (F)

ROI NITotal Sponsorship Spend (€M)

Source:CoreEstimatesAverage2019Euro/Sterlingexchangerateshavebeenappliedtoallyears,tofacilitatecomparison.

INVESTMENT IN SPONSORSHIP IN

THE REPUBLIC OF IRELAND COULD

INCREASE BY 9% TO €205.7 MILLION

IN 2020.

Wepredictsustainabilitywillbecomecentraltomanyinvestmentdecisions,asmorebrandslooktosponsorshipsthatdemonstratesustainabilityinaction.Itisimperativeforrightsholderstoreviewandimprovetheirsustainabilitycredentialsinordertoattractandretainsponsorshipinvestmentin2020.

DespiteDublinhostingfourEuro2020matches,theimpactofthetournamentontheIrishsponsorshipmarketwillbesmallasmostofthedealsaretiedupataEuropeanlevel.Elsewhere,IrishOlympicsponsorsandsponsorsofIrishOlympianswilltakeadvantageofthelong-overduerelaxationoftheinfamousRule40,allowingsponsorsfreedomtoassociatewithathletesduringthegames,thusensuringmoreIrishsponsors,suchasCircleK,cancapitaliseonthesuccessofourathletes.

41

Investment:

OUTLOOK20

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