IAB Adex Benchmark 2012 Daniel Knapp, IHS …...3 #INTERACT13 ©IAB Europe 2013. All rights...

IAB Adex Benchmark 2012 Daniel Knapp, IHS Electronics & Media

2 #INTERACT13

©IAB Europe 2013. All rights reserved.

ABOUT THE STUDY

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A meta-analysis of online ad spend in Europe

RATECARD

Campaigns x Ratecard

GROSS

Revenue Billed

NET

Revenue Billed No Agency commissions

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Horizontal expansion: country coverage

2006: 13 countries

2008:19 countries

2012: 26 countries

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26 countries in 2012

•  Austria •  Belgium •  Bulgaria •  Czech Republic •  Croatia •  Denmark •  Finland •  France •  Germany •  Greece •  Hungary •  Ireland •  Italy

•  Netherlands •  Norway •  Poland •  Russia •  Romania •  Serbia •  Slovenia •  Slovakia •  Spain •  Sweden •  Switzerland •  Turkey •  UK

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Vertical expansion: format granularity & context

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BIG PICTURE & CONTEXT

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The value of the European online ad market 2012

€24.3bn

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Eurozone volatility casts spell on media economy…

-8%

-6%

-4%

-2%

0%

2%

4%

6%

2004

Q1

2004

Q2

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

2007

Q2

2007

Q3

20

07 Q

4 20

08 Q

1 20

08 Q

2 20

08 Q

3 20

08 Q

4 20

09 Q

1 20

09 Q

2 20

09 Q

3 20

09 Q

4 20

10 Q

1 20

10 Q

2 20

10 Q

3 20

10 Q

4 20

11 Q

1 20

11 Q

2 20

11 Q

3 20

11 Q

4 20

12 Q

1 20

12 Q

2 20

12 Q

3 20

12 Q

4 20

13 Q

1 20

13 Q

2 20

13 Q

3 20

13 Q

4

GDP growth in Europe

Eurozone GDP Growth y-o-y France GDP Growth y-o-y Italy GDP Growth y-o-y Germany GDP Growth y-o-y

Source: IHS

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…industrial production & household consumption are good indictators for advertising market prospects…

-15%

-10%

-5%

0%

5%

10%

15% 19

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

UK advertising revenue growth

Actual NAR growth (yoy) Projected NAR growth (yoy)

Source: IHS Electronics & Media

…tectonic shifts are characterizing ad markets…

11

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Indonesia Argentina China Brazil Russia Mexico UK Germany France Spain Italy

CAGR of Total Media Ad Revenue (2011-2017)


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…but European online ad growth continues at a double-digit rate

21.8 24.3

0

5

10

15

20

25

30

2011 2012

Total online advertising (€bn)

11.5%

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Indeed, online is more resilient to macro-pressure than other media

2.5%

9.4%

3.8%

-5.2%

2.9%

-4.0%

9.5%

26.6%

11.5%

-1.7%

7.2%

-0.4%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

WE CEE Total

2012: economic & advertising growth

GDP Total excl. Online Online Total

Source: IAB Europe & IHS Electronics & Media

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Overall ad spend shows volatility, TV is resilient, online shows linear growth trajectory

0

20

40

60

80

100

120

140

2006 2007 2008 2009 2010 2011 2012

Ad spend per capita by medium

Online ad spend per capita TV ad spend per capita Total ad spend per capita


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There is no single factor for print decline & online does not absorb all print revenue, but budgets do migrate

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012

Ad spend per capita

Online ad spend per capita Print ad spend per capita


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In 6 years online more than doubled its share of all media revenue: 1 in 4 ad €s go to online in 2012

10.3%

19.0%

25.6%

0%

5%

10%

15%

20%

25%

30%

2006 2009 2012

Online market share of ad budgets: total Europe

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Online for the first time overtakes print newspaper ad spend & becomes 2nd biggest media category in Europe

0.6

4.6

6.3

8.7

19.3

24.3

28.1

0 5 10 15 20 25 30

Cinema

Radio

OOH

Magazines

Newspapers

Online

TV

2012: European advertising market share by medium

Note: Source for non-online ad revenue is IHS. Print ad spend excludes direct mail.


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Small number of markets make largest contribution to European ad spend

46.0%

69.5% 78.3%

86.7% 95.5%

0%

20%

40%

60%

80%

100%

Top 2 Top5 Top 7 Top 10 Top 15

Share of European online ad revenue by market

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Russia climbs up to 4th largest spender as remaining top 10 maintain their position in the European ranking

6642

4551

2770

1536 1418 1207 920 841 617 591

0

1000

2000

3000

4000

5000

6000

7000 Total online ad spend (€m)

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What is driving growth?

•  Both emerging markets growing from low basis and established markets that demonstrate sustainability of online ad momentum

•  Video •  Mobile •  RTB has the potential to be a driver •  Social networking sites •  Europeanisation and consolidation of classifieds & directories •  Localisation & individualisation of search, mobile search

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CEE leads growth, but remarkable is the sustainability of growth in mature markets

12%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40% Online ad growth

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Bulgaria

Croatia

Czech Republic

Denmark

Finland France Germany

Greece

Hungary

Ireland

Italy Netherlands

Norway

Poland Romania

Russia

Serbia

Spain

Austria

Belgium

Sweden

Switzerland

Turkey

UK

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0 20 40 60 80 100 120

Online ad spend per capita (€)

Onl

ine

ad m

arke

t gro

wth

Note: country bubbles represent market size

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Bulgaria

Croatia

Czech Republic

Denmark

Finland France Germany

Greece

Hungary

Ireland

Italy Netherlands

Norway

Poland Romania

Russia

Serbia

Spain

Austria

Belgium

Sweden

Switzerland

Turkey

UK

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0 20 40 60 80 100 120

Online ad spend per capita (€)

Onl

ine

ad m

arke

t gro

wth

Note: country bubbles represent market size

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FORMATS

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Search outperforms, display still high single digit, classifieds & directories pick up pace

17.9%

15.3%

5.7%

14.5% 15.5%

9.1%

6.3%

11.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Search Display Classifieds & directories Grand total

Year-on-year growth by format

2011 2012

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Search remains strongest segment in 2012

47.1% 48.8%

32.7% 32.4%

19.6% 18.5%

0%

20%

40%

60%

80%

100%

2011 2012

Format shares of online

Others Classifieds and directories Display Search

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Display growth shows few strong outliers above average rate, yet more outliers below average rate

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

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Online video is now 13% of all online display…

13%

0%

5%

10%

15%

20%

25%

Italy Spain European average

Poland UK Finland Russia Sweden Turkey

Online video share of display

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…but range of growth varies tremendously…

50.6%

-50%

0%

50%

100%

150%

200%

250% Online video growth

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…and so do absolute video market sizes

0 20 40 60 80

100 120 140 160 180

2012: size of online video advertising by market

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Mobile revenues are becoming significant, but are still lagging behind consumption

5%

0%

2%

4%

6%

8%

10%

12%

14% Mobile display share of total online display 2011 2012

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Just how crucial video and mobile are becomes clear if factoring them out of display

-30%

-20%

-10%

0%

10%

20%

30%

40% display display excl. video display excl. video and mobile

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Classifieds & Directories sees group of countries with strong positive outliers above average rate

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35% Classifieds & directories growth

Note: Russia not measured for classifieds & directories

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Majority of markets outperform average search growth, largest search market just shy of average

-20%

-10%

0%

10%

20%

30%

40%

50%

60% Search growth

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OUTLOOK

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What may the future hold? Addressable market is not only growing in mobile, but fixed-line as well…

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fixed Broadband penetration of households (%)

France Germany Italy Spain UK Nordics total Western Europe


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…yet the emerging multi-device landscape creates new opportunities

0 50 100 150 200 250 300 350 400 450 500

PC

Connected TV sets

Games consoles

Blu-ray disc players

STBs

Tablets and eReaders

Smartphones Western Europe: Connected Devices (m)

2016

2012

Source: IHS Elecronics & Media

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Thank you! [email protected] @_dknapp

IAB Adex Benchmark 2012 Daniel Knapp, IHS …...3 #INTERACT13 ©IAB Europe 2013. All rights...

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Transcript of IAB Adex Benchmark 2012 Daniel Knapp, IHS …...3 #INTERACT13 ©IAB Europe 2013. All rights...