Post on 12-Nov-2014
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The #1 Digital Nation.
The UK Success Story Guy Phillipson
CEOInternet Advertising Bureau
Today’s Presentation…
1. The BIG numbers
2. 2005 – The Five Point Plan for growth
3. 06/08 – web 2.0, Networks and branding
4. 09/10 – TV and online: Better Together
5. 11/12 – Mobile First
6. Programmatic – Greater with Data
7. Today – Defining the future of Advertising
Digital – Drives the UK Economy
£150 Billion
($240 Billion)
8.5% of UK GDP
A nation of eShoppers
•15% of non-food
purchases brought
online or Mobile
•Highest spend per-
capita worldwide
Digital = 34% of a £17.8 billion market (est)
*Digital = Online, Mobile and Tablet. Includes VOD and digital news/ magazine brands revenue.
TV & Radio – includes TV and radio sponsorship revenue.
SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC
2. 2005-The 5 Point PlanIAB becomes a Free resource for Advertisers
CEO’s 100 day IAB review…Guy Phillipson
21st April 2005
My listening campaign…
When I joined the IAB, I stated that we would
have to streamline our activities to be more
effective. Beyond that, I couldn’t answer all
the questions from members and journalists;
so I set out to interview our customers – the
advertisers – and their input has helped
enormously to shape this plan.
Advertisers split into three types…
Sceptics
Converts
Experts
Where is Online on Marketing Director Agenda? (on a scale of 1-10)
• Sceptics: 2
Yet to find a real use for it. No-one searches for their products
by name and no-one buys them online. Get the telly right and
the Marketing Director’s happy
• Converts: 5-6
Increasingly important as they understand how their customers
behave, gather knowledge, shop around and buy Online. Some
still consider Online predominantly a youth medium
• Experts: 8-10
Digital is an integrated part of Marketing Structure. Builds
customer relationships, increases sales, saves money – not just
CPA, but cuts operations costs, too
Our mission…
To help marketers find the best
role for online advertising, to
engage customers and build their
brands
Our ambition…
To put online on the agenda of
every marketer in the UK
Online broke 4% in the second half of 2004
24.1%
22.1%
18.6%
14.4%
3.7%1.1%
5.2%
6.3%
Television
Press - Display
Press - Classified
Direct Mail
Directories
Outdoor
Internet
Radio
Cinema
Source: PricewaterhouseCoopers / Interactive Advertising Bureau / The Advertising Association / Radio Advertising Bureau / WARC
Internet
4.3%
Online overtook Radio!!
Results
The 5 Point Plan
BehaviourSearchBrand
E-commerce
The Big Industry Conference
IAB Engage
Where Bill Gates famously said…
“The future of advertising is the internet”
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3. 2006-08: Rich Media,
Brand Engagement, and Web 2.0
The Rich Media Roadshow
• A tour of Advertisers
• Showcasing Award –
winning creative
• With Agency creative
directors
• Brand Engagement in
Action
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Creative showcase winner: Axe “Feather”
• Viewed and played by 3 million in 4 weeks
• Cursor turns into feather to tickle girl
• Average dwell-time, 8.5 minutes.
• That’s brand engagement!
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Cross-media Brand Engagement studies
• Small cars
• Shampoo
• Soft drinks
• Department stores
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Modelling brand engagement metrix
Brand
Engagement
Fun
Is a fun car
Is a feminine car 24%
SafetyIs a safe car Is a reliable car
6%
Ad Salience
You see a lot of ads around
Do good advertising12%
Stature
Is a really reputable company
Is good name in car manufacturing7%
Function
Has enough space for my needs. Is easy to park
Is a nippy car 8%
ValueIsn’t too expensive to run. You get lots of extras with Is expensive compared to other similar cars
3%
Style
Is a car for someone like me
I like the shape of 40%
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Small Cars – the overall impact of
communications
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Small cars – By Medium
4%
18%
37%
40%
Online
Press
TV
Outdoor
Radio
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Web 2.0 brings Social Media
By 2008 70%of homes on
Broadband.
50% with
wireless routers
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Around 40% of Display via Networks
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Online only medium showing growth in
2008Year on year growth for 2008
Total advertising
market growth = -3.5%
21.9%
19.2%
11.7% 5.1%
3.2%
1.0%5.4%
13.1%
19.5%
Television
Press Display
Internet
Press Classified
Direct Mail
Outdoor
Directories
Radio
Cinema
2008 market share 19.2% (15.5% in 2007)
% share of revenues for January to December
2008
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by
PwC.
Data excludes unclassified figures.
Total advertising
market
£17.5bn
4. 2009/10 – Structural change as Recession bites hard!
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UK GDP dives to minus 6% YOY in Q2
2009
GDP Growth
Economy grows by 0.3% in Q4 2009
IPA Marketers’ Bellwether Q4 2009
• Total budgets revised down for the 9th quarter in succession
• But internet budgets were revised up for the 2nd quarter running
So…Prove online works (Again!)
Autos Finance FMCG
Campaigns: Auto, Finance and Packaged goods
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61% watch TV while online
47
143
36Second most popular
activity after eating
while watching TV!
Don'tEveryday
WeeklyLess often
Headline Finding
When TV and Online ads were used together, the average uplift across all brand metrics for all tested categories was:
+ 18% Points
For All Categories Across Softer Metrics
32
43
71
46
60
79
18
30
57
Finance category average Car category average FMCG category average
Seen TV only or Online only Seen Both Seen Neither TV nor Online
Base : 25-54 Responsible for insurance/credit cards (1,002)
% Agree ‘I feel I know this brand really well’
Uplift among
those exposed
to both TV +
Online :
+17%
points+8%
points
+14%
points
= Significantly higher
= Significantly
different to group
who’ve seen neither
TV nor Online
25 25
69
4551
77
19 18
56
Finance category average Car category average FMCG category average
Seen TV only or Online only Seen Both Seen Neither TV nor Online
Base : 16-34 ads main shoppers (1,004)
% Agree: ‘I am likely to buy/use this brand in the future’
+26%
points
Uplift among
those exposed
to both TV +
Online :
+20%
points
+8%
points
= Significantly different to group
who’ve seen neither TV nor
Online
= Significantly higher
As Well As Harder Metrics Such As
Purchase Intent
• % Agree: ‘I am likely to buy/use this brand in the future’
37
4953
65
29
39
FMCG category average Cadbury Creme Egg
Seen TV only or Online only Seen Both Seen Neither TV nor Online
FMCG: Purchase Frequency raised
considerably
Base : Cadbury Creme Egg sample of 16-34s main shoppers (501); Q24
Uplift among those
exposed to both
TV + Online :
+16% points+16% points
= Significantly
different to group
who’ve seen
neither TV nor
Online
= Significantly
higher
% Agree: ‘I am likely to purchase more frequently’
Big Industry News in H1 2009…
5. Mobile First. IAB launched fully staffed mobile dept in 2008
Three Device Lives: tablets in context
Each device has its moment during the day- the
tablet particularly during the evening
0%
5%
10%
15%
20%
25%
30%
35%
Night Time 1-3am
Early Morning4-6am
Morning 7-9am
Late morning10am-12am
EarlyAfternoon1pm-3pm
Afternoon 4-6pm
Early Evening7-9pm
Late Evening10-12pm
% o
f In
tera
cti
on
s
Day in the Life of Device Usage - Weekday
Desktop Mobile Tablet
Base (number of check-ins): Desktop & Laptop 436 / Smartphone & Mobile 1544
Different formats have different strengths
A Full Page Interactive I
B MPU Interactive
C Full Page Interactive II
D Leaderboard Interactive
E MPU Dynamic
F Leaderboard Dynamic
G Full Page Static
H MPU Static
I Leaderboard Static
Size of bubble represents
% who recall seeing ad
A
C
B
DE
F
G
H
I
BORING/ ORDINARY
ENGAGING / FUN
UNIQUE / MEMORABLE
ANNOYING / IRRITATING
Full page
MPU
Leaderboard
Source: IAB Tablet Ad Format Study July 2012
The shift to mobile continues
Source: comScore
Page view July 13
Penetration
Wake up call for Advertisers!
6. Greater with Data.
The emergence of Progammatic
The Evolution of Display Advertising
Confidential
UK RTB Market gaining share of the total display market at a great pace
48
5,5%8,4%
13,5%16,8%
20,2%
24,9%
29,3%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
2011 2012 2013 2014 2015 2016 2017
UK RTB Market % Display Advertising
Source: IDC, 2013. Display Ad RTB Sales include all online and mobile display ads
Even Consumers become participants
Only 4%
of women
feel
beautiful
7. IAB UK Today
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“Defining The Future of Advertising”
Digital Still Driving the market
*Digital: Like for like growth (actual growth). Includes broadcast VOD and digital news/ magazine brands
revenue
SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC
Year on year change:
Digital shows sustained quarterly growth
*Digital: Like for like growth (actual growth). Includes VOD and digital news/ magazine brands revenue
SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC
Packaged Goods is now biggest spender!
SOURCE: IAB / PwC Digital Adspend H1 2013 based on 43% of total digital display revenues for H1
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Continued double digit growth forecast
…And the success story
continues!
Thank you!
Research & more>>www.iabuk.net
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