This time last year, the Irish advertising industry was staring into an abyss. As it digested the full extent and likely impact of the impending Covid-19 pandemic, an all-encompassing sense of doom prevailed in an industry that is better known for its chirpiness, chutzpah and its ability to solve problems for its clients.

 When the industry went dark for much of April and May last year, as most brands battened down the hatches and pulled their campaigns, there was talk of agency closures, mass lay-offs and possible mergers. At a time when the advertising industry was already facing several existential challenges, the picture was somewhat grim.

Fast forward a year and a new survey of advertising agency bosses published earlier this week shows that optimism levels have been restored, brands are active again and the industry could be looking at double digit growth in 2021.

So what has changed?

For a start off the anticipated collapse in advertising investment that was touted this time last year never materialised. Knee-jerk forecasts in April and May 2020 suggested that the collapse might be as high as 30pc for 2020. Thanks largely to a  buoyant fourth quarter, however, the average overall year-on-year decline was more like 6pc, according to the survey, which was carried out by IAPI, the trade organisation that represents creative and media organisations.

Anecdotal evidence from the industry over the last few months suggests that these trends continued into 2021 and most creative and media agencies are currently out the door with the volume of work. In addition, brands that held off on advertising in 2020, or at least part of it, are now back in the market trying to flog us everything from new cars and mortgages to broadband and streaming services.

Much of this is also borne out in the IAPI survey which notes that, overall, revenues were up by 2.4pc across the board in Q1 2021. Media agencies in particular have recorded year-on-year growth of 5pc while creative agencies have also fared better with one in four reporting a 20pc or more bump in their income for Q1 2020.

One of the yardsticks often used to track activity in the advertising marketplace is new business or account wins. If the IAPI survey is anything to go by, then adland has been a hive of activity since January with 63 new account wins and 90pc of agencies picking up new business since the beginning of 2021. This is a trend that is likely to continue for the remainder of 2021 with a number of account pitches already under  way with a lot more expected in Q3 and Q4.

While being invited to pitch is an important feature in the advertising world, it comes with a cost, a bone of contention for the industry for many years, especially when the winner of a pitch is a foregone conclusion before it even takes place.

While it may not be a trend just yet, nearly half of the creative account wins in Q1 2020 did not require a pitch, according to the IAPI survey. This can be interpreted in two ways: a full-blown pitch is not always necessary for demonstrating creativity or a brand is not casting its net wide enough and ignoring other agencies that might be better suited to the brief.

But the pitch still plays an important role and around 90pc of agencies have taken part in a pitch this year with the average number of pitches per agency standing at four so far this year. Again, taking into consideration the costs associated with pitching which can run as high as €250,000 a year, the thorny issue of who should pay for them will remain a topic of discussion for some time.

With the gradual lifting of lockdown restrictions and the vaccine roll-out well under  way, renewed optimism is evident across the board, according to IAPI with average revenue growth of around 7pc being forecasted for 2021. Having had a difficult 2020, the industry will take any growth it can. 

Indeed this optimism is shared by Charley Stoney, CEO of IAPI. “Over the past year and a half, I have observed the industry put their heart and soul into their work, the wellbeing of their teams and business success for their clients,”  she said. “I am more than pleased to see that this hard work is starting to pay off again. “ If Q1 performance can be up year-on-year over lockdown, it bodes very well for the remainder of 2021. While agency leaders predict a 7pc growth in revenue this year, I predict double-digit growth for our industry and am confident I will be proved right.”

Everyone working in the advertising industry will be hoping she is right.