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The
Celtic Tiger - some Media implications
It is difficult to describe the effect the
Celtic Tiger has had on Ireland-both North
and South to anyone who has not experienced
it by visiting Ireland for themselves during
the past five years.
The
economic vital statistics for the
Republic
of Ireland for the past ten years make
almost frightening reading. Over this
decade the
level of real Irish GDP has doubled
in size with a further growth of 4.5%
forecast for 2004. Another significant
fact has been
the successful management and maintenance
of this boom by successive Irish governments.
The current economic climate is one of
low
interest and low inflation rates and this
continues to fuel unprecedented levels
of
consumer spending. Many theories have been
put forward as to why the Irish economy
has enjoyed such growth. These include
EU membership giving freer access to the
Single
Market and the Eurozone-the attractive
rates of Corporation tax and it's success
in attracting
inward company investment - a high educational
standard which delivers a young and competent
Labour force-a reversal of the trend of
emigration toward immigration with many
returning expatriates bringing both finance
and expertise "home". Throughout the political
state of Irish life has been stable and
successive Governments have been generally
praised for their management of our economic
boom. There was serious concern in 2002
that our economic bubble was in danger
of
bursting however a recovery has taken place
and the medium term economic forecasters
are generally agreed that economic growth
will continue - albeit at a lower level.
The effect
of the Celtic Tiger on all aspects of
day-to-day
life has been truly profound. A new confidence
is very apparent. Most Irish companies
have
been reporting record turnover and profits.
House prices are at an all time high with
the "average" property now valued at €
239,000 -
a figure that rises to € 314,000
in Dublin. House prices rose by 12% nationally
in
2003.
New car sales rose dramatically with
the result there were twice as many cars
on
Irish roads in 2003 compared with 1997.
More than 60% of the population took
a foreign
holiday last year. The Irish attitude
to money and savings has always allowed
us
to spend money more freely than most
other nationalities. This high level
of consumer
spending has given advertisers the
confidence to spend at record levels.
It
is often forgotten that Northern Ireland
is in the unique position of finding itself
as the only part of the UK that shares a
land border with the Eurozone. The arrival
and smooth acceptance of the Euro in the
Republic has surprised most observers who
predicted a troubled entry. The economic
affairs of NI are inextricably linked to
the Good Friday Agreement -the state of
which is crucial in attracting Foreign Direct
Investment. The structure of the NI economy
has seen some big changes over the past
five years where it has moved away from
the traditional manufacturing "engine" of
Ireland to a more modern service based economy.
The economic forecasters predict a real
growth of 3% for 2004 -a result, which keeps
NI in line with other UK regions. If these
forecasts become a reality it is hoped that
the benefits will be felt throughout the
Province and not simply in Belfast alone.
According to the latest IPA results
the NI advertising market is valued at £146
million currently with Press and TV taking
a near 90% share of this expenditure. Huge
investment from Westminster maintains the
Public Sector as the largest advertising
Category.
Ireland - The Media Future
As
a race the Irish love lively debate and
we look to our Media to provide us with
the agenda. We are selective about where
we get our information. Traditional media
sources such as our huge Sunday newspaper
market are evidence of this. One of the
legacy's of the Celtic Tiger has seen a
large growth in the number of media options
now on offer-enterprising media owners are
offering more newspapers, magazines, TV
and Radio stations. As options increase
the audiences delivered by the traditional
media comes under threat. Audience fragmentation
is not; of course, unique to Ireland what
is different is the speed of this
change. The nett effect is that advertisers
are obliged to be more selective in their
choice of media. Large and viable audiences
are available-it simply needs more care
should be taken at the planning stage. More
care also needs to be taken with the Creative
message-it is still the case that far too
many UK created commercials depend on an
Irish address change or an Irish voice over
to "Irishise" their copy. Irish media is
changing and so must the creative message.
In summary
advertisers are now faced with an Ireland
that has changed in the most profound way
over the past five years. The legacy of
the Celtic Tiger is clear to see in all
areas of Irish life. The media options available
do deliver good audiences. The overall economy
will continue to increase with some sectors
growing more quickly than others.
The
message is clear - particularly to
those
new to the Irish market. If advertisers
want to compete successfully in the
Ireland
of today they quickly need to establish
clearly that their selected market
is viable
and only then should they start the media
and creative process.
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