• Wednesday, 4.00 – 5.00pm

Improving Online Ad Effectiveness ResearchMODERATOR:

• Simon Booth, Technical Director, Tangozebra

PANELISTS:

• Nick King, Director of Research, Diffiniti

• Laurence Bour, Head of Research, Internet Advertising Bureau

• Simon Falconer, Strategic Planner, Guardian Unlimited

IAB UK Online Ad Spend Study

Results for the full year 2005

Prepared by PricewaterhouseCoopers for the IAB

Background

• Census of all major UK online media owners

• Official Advertising Association figures since 1997

• Information collected each half year

• Analysis available by

• Format

• Industry category

Source: IAB/PricewaterhouseCoopers

£1,366.4mmarket in 2005

Source: IAB/PricewaterhouseCoopers

65.6% increaseAn increase of

£541.3m on comparable full year results

Source: IAB/PricewaterhouseCoopers

2005 vs 2004

Full year 2005

Market share nears 8%

23.5%

21.2%

17.8%

13.6%

5.1%6.4%

0.9%3.5% TVPress - DisplayPress - ClassifiedDirect MailInternetDirectoriesOutdoorRadioCinema

Internet7.8%

Source: PricewaterhouseCoopers / Internet Advertising Bureau / The Advertising Association / Radio Advertising Bureau / WARC

-5.1% -4.2%

3.6% 5.8%

65.6%

-1.0%-2.1%-3.9%

PressClassified

Radio Direct Mail Cinema PressDisplay

TV Outdoor Internet

Online drives the whole market

Total advertising market growth = 2.5%

Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC

The digital media mix

The developing mix of ad products

The digital media mix% share of revenues for the full year 2005

24.6%

56.2% 19.2%

DisplayClassifiedsPaid for search

Full year total –£1,366.4m

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. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

The digital media mixAll formats have experienced actual growth, especially paid-for search listings

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. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

3.6

1.2

13.7

36.7

14.3

40.3

121.1

164.5

429.6

8.8

10.7

15.7

20.5

55.6

80.3

182.0

224.4

768.3

Display ads on email

Other display

Interruptive formats

Sponsorships

Tenancies

Further classifieds

Recruitment classifieds

Banners / Embedded

Paid for search listings

20052004

Industry categories

Recruitment lead the market in the second half of 2005

IAB estimates for actual ad spend by industry are based on samples of categorised net revenue from key IAB members provided by PwC. The ranking now shows Telecoms as a separate category (previously included in Business & Industrial). Data excludes unclassified figures and covers 55% of online revenues in H2 2005. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

0.7%1.2%

1.2%

1.3%

2.7%

2.8%

4.9%

6.1%

6.9%

10.1%

10.2%

12.4%

17.4%

22.1%

Other

Govt & other organisations

Property

Gardening & Agriculture

Retail

Business & Industrial

Consumer goods

Telecoms

Technology

Travel & Transport

Entertainment & Media

Automotive

Finance

Recruitment

Recruitment & Finance continue todominate the onlineadvertising market

Automotive and Entertainment & Media are catching up with the perennial leaders

IAB estimates for actual ad spend by industry are based on samples of categorised net revenue from key IAB members provided by PwC. The ranking now shows Telecoms as a separate category (previously included in Business & Industrial).Data excludes unclassified figures and covers 55% of online revenues in H2 2005. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

1.4%

0.7%

1.5%

3.5%

4.2%

5.7%

9.3%

24.0%

0.7%

1.2%

1.2%

1.3%

2.7%

2.8%

4.9%

6.1%

6.9%

12.4%

17.4%

0.2%

11.2%

21.6%

10.5%

6.2%10.1%

10.2%

22.1%

Other

Govt & other organisations

Property

Gardening & Agriculture

Retail

Business & Industrial

Consumer goods

Telecoms

Technology

Travel & Transport

Entertainment & Media

Automotive

Finance

Recruitment

H2 2005H2 2004

The next milestone

£2 billion• A real possibility within next 12 months

• This would make online bigger than national press

Branding studies

User 1

User 2

User 3

* banner *

* skyscraper *

* No exposure *

* mpu *

* banner *

Branding studies

User 1Exposed

User 2Exposed

User 3Control

* banner *

* skyscraper *

* No exposure *

* survey *

* survey *

* survey *

* mpu *

* banner *

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

• Brand favourability

• Brand perception

• …

Branding studies

Metrics gathered

• Spontaneous awareness

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

• Brand favourability

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

• Brand favourability

• Brand perception

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

• Brand favourability

• Brand perception

• Demographics

Branding studies

Metrics gathered

• Spontaneous awareness

• Prompted awareness

• Advertising awareness

• Message association

• Brand favourability

• Brand perception

• Demographics

• …

Branding studies

Breakdowns:

• Demographic segments

• Sites

• Creatives

• Interactions

• …

Scope

Client expectation

Relationships Implementation

PlanningQuantity

Thank you