IAB Europe AdEx Benchmark 2015 10th...
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IAB Europe AdEx Benchmark 2015 10 th edition Daniel Knapp, IHS Eleni Marouli, IHS
Transcript of IAB Europe AdEx Benchmark 2015 10th...
IAB Europe AdEx Benchmark 201510th edition
Daniel Knapp, IHSEleni Marouli, IHS
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About the Study
A meta analysis of online ad spend in Europe
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RATECARD
Campaigns x Ratecard
GROSS
Revenue Billed
NET
Revenue Billed No Agency commissions
Submissions from 27 countries in Europe
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• Austria• Belarus• Belgium• Bulgaria• Czech Republic• Croatia• Denmark• Finland• France• Germany• Greece*• Hungary• Ireland• Italy
• Netherlands• Norway• Poland• Russia• Romania*• Serbia• Slovakia• Slovenia• Spain• Sweden• Switzerland• Turkey• UK
*Have not submitted in time for Interact, but will be included in the final report
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Big Picture and Context
€36.2bnThe value of the European online advertising market in 2015
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Acceleration in European GDP growth in 2015 boosts the online ad market
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-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
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
2007
-Q4
2008
-Q1
2008
-Q2
2008
-Q3
2008
-Q4
2009
-Q1
2009
-Q2
2009
-Q3
2009
-Q4
2010
-Q1
2010
-Q2
2010
-Q3
2010
-Q4
2011
-Q1
2011
-Q2
2011
-Q3
2011
-Q4
2012
-Q1
2012
-Q2
2012
-Q3
2012
-Q4
2013
-Q1
2013
-Q2
2013
-Q3
2013
-Q4
2014
-Q1
2014
-Q2
2014
-Q3
2014
-Q4
2015
-Q1
2015
-Q2
2015
-Q3
2015
-Q4
2016
-Q1
Eurozone France Italy Germany Spain
GDP growth in Eurozone (%)
Source: IHS © 2016 IHS
€30bn net addition to the online ad market in 10 years…
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6.69.2
14.5 15.818.8
21.924.4
28.632.1
36.2
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010 2011 2012 2013 2015 2015
Total online advertising spend (€bn)
Source: IAB Europe for 2011-2015; 2006-2011 retropolated based on IHS growth rates
CAGR (2006-2015): +20.5%
€30bn
…in an otherwise flat media advertising market
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0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Digital Traditional
Ad spend by category in Europe in 2015 (€bn)
Source: IAB Europe for online and IHS for all other media © 2016 IHS
Double-digit growth throughout excluding blip in 2009
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39.0%
58.6%
8.9%
18.6% 16.5%11.5% 11.9% 11.6% 13.1%
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Online advertising year-on-year growth (%)
Source: IAB Europe and IHS
Online lifts a declining media advertising market in 2015
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1.0%
-28.2%
-3.9%
12.9%15.9%
13.1%
4.8%
-19.5%
1.1%
-35%-30%-25%-20%-15%-10%
-5%0%5%
10%15%20%
Western Europe CEE Total Europe
Total excluding online Online Total
2015: advertising year-on-year growth (%)
Source: IAB Europe for online and IHS for all other media
Online overtakes TV to become the largest advertising medium in Europe
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0.7
5.2
7.5
25.5
33.3
36.2
0 5 10 15 20 25 30 35 40
Cinema
Radio
OOH
TV
Online
2015 2014
Ad spend by category in Europe in 2014 and 2015 (€bn)
Source: IAB Europe for online and IHS for all other media
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Markets
Top three markets still account for the lion’s share of the European online advertising market
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60.4%70.5%
78.4%86.4%
0%10%20%30%40%50%60%70%80%90%
100%
Top 3 Top 5 Top 7 Top 10
2012 2013 2014 2015
Share of European online ad revenue by market (%)
Source: IAB Europe and IHS
Top 10 online ad markets at a glance
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824
829
1,234
1,310
1,541
1,585
2,085
4,227
5,794
11,826
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Switzerland
Denmark
Spain
Sweden
Russia
Netherlands
Italy
France
Germany
UK
2015 2014
Top 10: total by country in 2014 and 2015 (€m)
Source: IAB Europe and IHS
Strong growth across Europe in 2015…
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29.0
%
22.3
%
21.8
%
21.6
%
20.4
%
20.0
%
19.7
%
18.7
%
18.2
%
18.0
%
16.9
%
15.3
%
14.2
%
13.7
%
13.3
%
13.1
%
12.8
%
11.2
%
10.4
%
9.7%
8.4%
8.0%
7.6%
7.5%
6.8%
5.6%
0%
5%
10%
15%
20%
25%
30%
35%
Irela
nd
Bul
garia
Pol
and
Slo
veni
a
Slo
vaki
a
Sw
eden
Turk
ey
Sw
itzer
land
Cro
atia
Spa
in UK
Nor
way
Rus
sia
Hun
gary
Den
mar
k
Eur
ope
Aus
tria
Ser
bia
Italy
Bel
gium
Net
herla
nds
Finl
and
Fran
ce
Ger
man
y
Bel
arus
Cze
ch R
epub
lic
Online advertising year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
…at all levels of market maturity and market size
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Belgium
Bulgaria
Croatia
Czech Republic
Denmark
FinlandFranceGermany
Hungary
Ireland
ItalyNetherlands
Norway
Poland
Russia
Serbia
Slovenia
Spain
Austria
Belarus
SwedenSwitzerlandTurkey
UK
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 20 40 60 80 100 120 140 160 180 200
Online ad spend per capita (€m)
2015
yea
r-on
-yea
r gro
wth
(%)
Source: IAB Europe and IHS
Western Europe: a snapshot
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38.0%
15.7%
45.9%
0.4%
Display Classifieds & Directories Paid-for-search Other
Western Europe: share of formats in 2015
Source: IAB Europe and IHS
2014 (€bn)
2015 (€bn) Like-for-likegrowth (%)
Share of Total (%)
Display 10.5 12.3 17.7% 38.0%
of which video 1.5 2.1 37.3% 16.8%*
of which mobile 2.1 3.4 60.0% 10.9%*
Classifieds & Directories
4.8 5.1 4.8% 15.7%
Paid-for-search 13.3 14.9 11.9% 45.9%
of which mobile 2.1 3.3 55.4% 12.0%*
Total 28.7 32.5 12.9% 100.0%
*Calculated based only on countries which reported these figures
CEE: a snapshot
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2014 (€bn)
2015 (€bn) Like-for-likegrowth (%)
Share ofTotal (%)
Display 1.3 1.5 14.2% 40.8%
of which video 0.2 0.2 25.4% 16.2%*
of which mobile 0.1 0.2 70.1% 11.0%*
Classifieds & Directories
0.2 0.2 3.3% 5.4%
Paid-for-search 1.7 2.0 17.2% 53.8%
of which mobile 0.03 0.5 208.6% 27.6%*
Total 3.2 3.7 15.1% 100.0%
*Calculated based only on countries which reported these figures
40.8%
5.4%
53.8%
0.0%
Display Classifieds & Directories Paid-for-search Other
CEE: share of formats in 2015
Source: IAB Europe and IHS
Drivers• Programmatic and automation• Proliferation of e- and m-commerce• Rise of online video consumption• Growth in premium video inventory –
attracting TV budgets• Improvement in ad quality• Shift to a mobile-first advertiser mentality• Social media advertising• The emergence of native advertising
Hurdles• Ad blocking• Viewability and ad fraud• Misuse of data• Plateau of desktop advertising – adapting
desktop ads to mobile– High production costs– Structural barriers
• Macroeconomic environment and adverse political conditions
Drivers and hurdles in 2015 as reported by local IABs
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Formats
Display continues to drive online advertising growth
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14.9%
3.6%
13.0%11.9%
15.2%
5.8%
10.8% 11.6%
17.4%
4.9%
12.6% 13.1%
0%2%4%6%8%
10%12%14%16%18%20%
Display Classifieds & Directories Paid-for-search Total
2013 2014 2015
Year-on-year growth (%)
Source: IAB Europe and IHS
Display outpaces other formats to further increase its share
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47.5% 48.2% 43.8%32.2% 31.0% 32.7% 32.4% 33.8% 36.7% 38.3%
18.3% 14.9% 18.9%
19.8% 20.7% 19.6% 18.5% 16.8% 15.6% 14.6%
34.1% 36.6% 36.6%47.3% 48.0% 47.1% 48.8% 49.2% 46.7% 46.7%
0%10%20%30%40%50%60%70%80%90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Display Classifieds & Directories Paid-for-search Other
Format shares of online (%)
Source: IAB Europe and IHS
Mobile drives online ad market growth in Europe in 2015
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4.9%
12.6%
13.1%
17.4%
36.0%
57.4%
60.4%
0% 10% 20% 30% 40% 50% 60% 70%
Classifieds & Directories
Paid-for-search
Total
Display
Video
Mobile Search
Mobile Display
Year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Half of European display markets grow above 20%, three above 30%
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43.5
%
38.1
%
32.5
%
25.0
%
24.5
%
23.3
%
22.6
%
22.6
%
22.6
%
22.3
%
21.9
%
21.5
%
17.4
%
16.1
%
15.8
%
14.9
%
14.3
%
11.1
%
10.8
%
9.7%
9.6%
9.6%
7.7%
6.2%
-2.1
%
-19.
6%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Slo
veni
a
Irela
nd
Pol
and
Cro
atia UK
Spa
in
Bul
garia
Turk
ey
Nor
way
Slo
vaki
a
Bel
gium
Sw
itzer
land
Eur
ope
Italy
Fran
ce
Sw
eden
Aus
tria
Finl
and
Hun
gary
Den
mar
k
Ser
bia
Ger
man
y
Cze
ch R
epub
lic
Net
herla
nds
Rus
sia
Bel
arus
Display year-on-year growth (%)
Source: IAB Europe and IHS
12 of the 25 IABs
Video is an increasingly important part of display
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32.1
%
28.3
%
25.1
%
20.0
%
19.8
%
18.1
%
18.0
%
18.0
%
16.8
%
16.7
%
16.0
%
15.9
%
15.3
%
15.1
%
14.7
%
14.4
%
12.8
%
10.1
%
8.7%
8.5%
8.4%
8.4%
8.1%
5.5%
0%
5%
10%
15%
20%
25%
30%
35%
Bul
garia
Rus
sia
Sw
itzer
land
Italy
Sw
eden
Irela
nd
Bel
gium U
K
Net
herla
nds
Eur
ope
Fran
ce
Spa
in
Pol
and
Ger
man
y
Cro
atia
Aus
tria
Turk
ey
Finl
and
Den
mar
k
Hun
gary
Cze
ch R
epub
lic
Nor
way
Slo
veni
a
Bel
arus
Video share of Display in 2015 (%)
Source: IAB Europe and IHS
€2.3bn
Mobile accounts for a quarter of all European display ad spend, approaching 50% in most advanced markets
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43.1
%
37.5
%
36.8
%
33.0
%
29.5
%
27.5
%
26.1
%
25.4
%
20.9
%
20.6
%
19.6
%
10.9
%
9.6%
8.5%
8.5%
8.0%
7.9%
7.3%
5.1%
4.4%
2.9%
2.6%
0%5%
10%15%20%25%30%35%40%45%50%
UK
Irela
nd
Nor
way
Italy
Net
herla
nds
Finl
and
Sw
eden
Eur
ope
Fran
ce
Pol
and
Hun
gary
Ger
man
y
Rus
sia
Cze
ch R
epub
lic
Den
mar
k
Ser
bia
Aus
tria
Spa
in
Cro
atia
Turk
ey
Bel
arus
Bul
garia
2012 2013 2014 2015
Mobile share of Display (%)
Source: IAB Europe and IHS
€3.5bn
Mobile outperformed desktop display ad spend in all but two countries in 2015
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38.1
%
32.5
%
25.0
%
24.5
%
23.3
%
22.6
%
22.6
%
22.6
%
16.1
%
15.8
%
14.9
%
14.3
%
11.1
%
10.8
%
9.7%
9.6%
9.6%
7.7%
6.2%
-2.1
%
-19.
6%
12.6
%
12.4
%
25.3
%
7.9%
23.1
%
22.3
%
21.2
%
0.1% 3.
7% 7.7% 9.1% 13
.2%
2.4%
0.2%
7.3%
7.1%
6.0%
1.5% -1
1.5%
4.3%
-20.
7%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Irela
nd
Pol
and
Cro
atia UK
Spa
in
Bul
garia
Turk
ey
Nor
way
Italy
Fran
ce
Sw
eden
Aus
tria
Finl
and
Hun
gary
Den
mar
k
Ser
bia
Ger
man
y
Cze
ch R
epub
lic
Net
herla
nds
Rus
sia
Bel
arus
Display Display excluding mobile
Display advertising year-on-year growth in 2015 (%)
Source: IAB Europe and IHS © 2016 IHS
Fewer C&D markets experienced decline in 2015, but the rate of growth has slowed down in Europe
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77.8
%
66.0
%
60.5
%
32.3
%
16.1
%
15.0
%
13.0
%
12.0
%
11.6
%
9.9%
9.2%
5.8%
5.2%
4.9%
3.2%
2.1%
1.9%
0.3%
0.3%
-1.2
%
-1.6
%
-3.4
%
-7.8
%
-30.
7%
-40%
-20%
0%
20%
40%
60%
80%
100%
Bel
arus
Bul
garia
Slo
veni
a
Ser
bia
Hun
gary
Cro
atia
Aus
tria
Pol
and
Ger
man
y
Sw
itzer
land
Net
herla
nds
Den
mar
k
UK
Eur
ope
Slo
vaki
a
Fran
ce
Turk
ey
Irela
nd
Finl
and
Italy
Sw
eden
Nor
way
Bel
gium
Cze
ch R
epub
lic
Classifieds & Directories year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Paid-for-search maintains double-digit growth
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35.0
%
30.0
%
28.1
%
27.6
%
25.8
%
25.7
%
20.0
%
19.9
%
19.5
%
18.2
%
16.0
%
15.3
%
13.7
%
12.6
%
12.5
%
10.8
%
10.5
%
10.0
%
8.8%
6.3%
6.0%
5.0%
4.6%
4.0%
3.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Sw
eden
Cro
atia
Irela
nd
Sw
itzer
land
Slo
vaki
a
Nor
way
Bul
garia
Den
mar
k
Rus
sia
Turk
ey
Hun
gary UK
Spa
in
Eur
ope
Pol
and
Aus
tria
Net
herla
nds
Bel
arus
Cze
ch R
epub
lic
Finl
and
Ser
bia
Ger
man
y
Italy
Fran
ce
Bel
gium
Paid-for-search year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Variance across Europe in mobile share of search highlights national differences in search behaviour and monetisation
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50.6
%
36.5
%
30.9
%
30.0
%
25.1
%
23.3
%
22.9
%
22.3
%
22.1
%
21.5
%
20.5
%
18.7
%
16.5
%
5.6%
0%10%20%30%40%50%60%70%80%90%
100%Ire
land
Aus
tria
Rus
sia
UK
Fran
ce
Ser
bia
Eur
ope
Sw
eden
Italy
Hun
gary
Cze
ch R
epub
lic
Ger
man
y
Pol
and
Spa
in
Mobile share of paid-for-search ad spend in 2015 (%)
Source: IAB Europe and IHS
€3.7bn
Drivers
• Favourable economic forecasts• Large-scale sporting events:
– Euro 2016– Rio Olympics
• Growth of video, facilitating the move of TV brand budgets online
• New native ad formats
• Tough comparatives • Plateau of paid-for-search• Complexity of devices, platforms, behaviours• No universal digital currency• Duplication & fragmentation of ad tech infrastructure
Outlook for 2016
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Hurdles
7.8%
5.1% 4.9%
2.7%
0.5%
-4.4%-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Online Cinema TV Radio OOH Print
Media ad spend growth in 2016 (%)
Source: IHS © 2016 IHS
Contact:Daniel Knapp, [email protected], @_dknappEleni Marouli, [email protected], @EMarouli_Ad
