“2023 looks set to be a year of considerable challenge for the media market in Ireland. There will be an epic “Battle of the Brands” for a slice of still robust – but tightening – household spend, brand owners and agencies will move budgets around a spread of media choices in order to deliver more value and bigger impact while new advertising models from leading streaming services look set to affect performance by the digital and linear media advertising sectors.” That’s according to Peter Smyth, CEO of IRS+ www.irsplus.ie Ireland’s leading centralised media sales and marketing bureau, serving independent local and national, broadcast and digital media channels.
- Overall he believes that there will be an 8% slowdown in the Irish media market in line with the predicted macro-economic downturn. He says: “If we are to learn anything from previous years, it is that now is not the time to go quiet. As the pandemic hit in early 2020 the uncertainty and unprecedented nature of the crisis led to many businesses giving into their instinct to stop spending. Research from McGraw-Hill claims the decisions made during a recession have a lasting impact for several years. Simply, brands cutting spend continue to lose market share long after marketing spend is resumed. As a popular adage says, “When times are good you should advertise. When times are bad you must advertise.”
- Proliferation of the AV market since the pandemic and the threat of an economic downturn will negatively impact traditional, linear TV advertising. Netflix & Disney can see the writing on the wall and plan to introduce ad supported tiers to grow subscriber numbers and increase revenue. Will this be enough to convince consumers to stick with multiple subscription services?
- 2023 won’t be all about impressions but the impression your impressions make! Digital advertising will slow as brands will move from a saturated digital market to invest in media that delivers on attention-based metrics. This could be as simple as trying out new ad formats, airtimes or getting more creative with the media mix in a way that delivers more on attention rather than impressions. The Dentsu, Change and Opportunity, Media Trends 2023 report says “Attention is an ad metric that correlates with effect, and more marketers are turning to this to see value for money and compare different channels”
- Radio will remain resilient. This much we know for sure. When consumers inevitably look at the monthly costs of their multiple subscription services, they will question the value they receive. However, Radio is a medium that has been around all our lives. It delivers endless entertainment, news, and community information, for FREE, a benefit that is almost never mentioned.
In addition, there are a number of industries that IRS+ believes will benefit most from Radio advertising in 2023.
o Streaming services: Radio will deliver reach when introducing new product let initiatives such as ad tiered platforms but it will also serve to reinforce the brand when times are tough for consumers.
o Utility brands: as costs of living rise, brands associated with essential services such as electricity, gas, oil, broadband and mobile phone providers will need a medium to protect their brand reputation. Radio will help to deliver their brand promises to local communities throughout Ireland.
o “Treat Yourself” brands: Radio will help keep these brands top of mind when consumers want to treat themselves to a take-away meal or some fancy groceries to cheer them up during hard times and for when they inevitably start spending again.
o Grocery retail: There will be an epic battle for the household budget among the top grocery retail outlets. A local accent could outperform a national accent by up to 8%* . Every little helps…as they say.
“Media Agnostic, Idea First”
In a recent announcement of a new strategic partnership with Foe, the award-winning ideation, production and social content agency, IRS+ has adopted a new “Media Agnostic and Idea First philosophy which signalled a different approach to working with brands and agencies. This development is a radical re-imagining of the business. So, while radio continues to be a very important part of its DNA, and will absolutely remain so, IRS+ will be media agnostic for every new brief it receives – not every solution will be a radio one if it’s not a natural fit.