Advertising Industry in Ireland
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The advertising industry in Ireland has gone from strength to strength over the past number of years. The ad market has seen a huge upturn, almost doubling to Ђ1.4billion in the last four years. There have been suggestions that the slowdown in economic growth has not been as dramatic as previously thought. GDP looks on the increase. Growth is predicted at around 4.5%. Because of this better economic outlook, advertising growth looks set to be at 2.4% leading to an industry expansion by 3.1% .
4.2. Advertising expenditure in Ireland
Fig.1
There is an obvious increase in the advertising expenditure in Ireland. Auto-Vision believes that a new form of advertising will add a new segment to this mature market. There is an obvious niche in the market for forms of advertising which entertain the customer throughout the journey as there are few methods of advertising which allow for the same. AutoVision feel the positive upturn in advertising expenditure is encouraging and reassuring.
4.3. Entry barriers
AutoVision recognises the following as barriers to entry that may effect their entry into the market
Government/industry regulations may make entry more difficult or impossible. In the extreme case, a government may make competition illegal and establish a statutory monopoly. Requirements for licenses and permits, for example, may raise the investment needed to enter a market.
Predatory pricing – the practice of a dominant firm selling at a loss to make competition more difficult for new firms who cannot suffer such losses, as a large dominant firm with large lines of credit or cash reserves can.
Economy of scale – Large, experienced firms can generally provide services at lower costs than small, inexperienced firms. Cost advantages can sometimes be quickly reversed by advances in technology.
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