IAB Europe AdEx Benchmark H1 2018 study FINALMobile ad spend crosses !10bn mark in H1 2018 4.0 4.2...

##adexbenchmark

AdExAdEx Benchmark AdExAdEx Benchmark Benchmark Study H1 2018

November 2018Digital Advertising in Europe

##adexbenchmark

The data and charts shown in this report The data and charts shown in this report cannot be used without the expressed cannot be used without the expressed

permission of IAB Europe and IHS cannot be used without the expressed cannot be used without the expressed

permission of IAB Europe and IHS permission of IAB Europe and IHS Markit

All data and analysis must be quoted as All data and analysis must be quoted as “IAB Europe & IHS

All data and analysis must be quoted as All data and analysis must be quoted as “IAB Europe & IHS “IAB Europe & IHS Markit

All data and analysis must be quoted as All data and analysis must be quoted as MarkitMarkit”.

##adexbenchmark

About the study

#ade

xben

chm

ark

A meta-analysis of digital ad spend in Europe

RATECARD

Campaigns x Ratecard

GROSS

Spend Billed

NET

Revenue Billed No Agency commissions

#ade

xben

chm

ark

About the data

The content of this analysis is informed by:

1. Reported H1 2018 data from national IABs where available2. Estimates by national IABs based on local insight, in collaboration with IHS Markit3. Estimates by IHS Markit based on the IHS Markit Advertising Intelligence Service to:

a) Fill coverage gaps and add granularity to the data provided by 13 IABsb) Provide data for markets where H1 2017 data was not available from IABs

4. Harmonisation of all reported data to ensure like-for-like comparison across markets

This is an interim update of the full year IAB Europe & IHS Markit Adex Benchmark study to provide nearer-term data on 2017 trends and facilitate understanding and decision-making in the European digital advertising market.

All data refers to ’Total Europe’ based on the 27 countries on the next slide, unless mentioned otherwise.

#ade

xben

chm

ark

Data for 27 markets in Europe

! 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

##adexbenchmark

The size of the digital advertising market in Europe (H1 2018)

!25.7bn

#ade

xben

chm

ark

Digital advertising grew by 10% in H1 2018

23.425.7

0

5

10

15

20

25

30

H1 2017 H1 2018

Digital Advertising Spend in Europe (!bn)*

+10.0%

Source: IAB Europe & IHS Markit

*H1 2017 restated based on fx-rate, measurement changes by national IABs, and full measurement of out-stream video

#ade

xben

chm

ark

9.3 10.4

3.4 3.5

10.711.8

0

5

10

15

20

25

30

H1 2017 H1 2018

Digital Ad Spend by Format (!bn)

Display Classifieds & Directories Search

!2.3bn added in H1 2018 across 3 formats: display grows fastest, search maintains lead, classifieds & directories see slow growth

1.1

0.1

1.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Display Classifieds &Directories

Search

Net Additions by Format (!bn)

H1 2017 H1 2018

+12.3%

+3.2%

+10.2%39.7% 40.6%

14.4% 13.5%

45.9% 46.0%

0%

20%

40%

60%

80%

100%

H1 2017 H1 2018

Share of Total by Format

Display Classifieds & Directories Search


#ade

xben

chm

ark

Digital video reaches 30% of total display spend – growing 4.2x faster than non-video display spend

6.8 7.2

2.53.2

0

2

4

6

8

10

12

H1 2017 H1 2018

Display by Format (!bn)

Non-Video Display Video

72.9% 69.2%

27.1% 30.8%

0%

20%

40%

60%

80%

100%

H1 2017 H1 2018

Share of Display Total


6.6%

27.9%

0%

5%

10%

15%

20%

25%

30%

Non-VideoDisplay

Video

H1 2018 Growth by Display Format


#ade

xben

chm

ark

Non-Video Display28.1%

Video12.5%

Classifieds & Directories

13.5%

Search46.0%

H1 2018


Classifieds & Directories Search

The expansion of video drives the share gains of total display


Video10.7%


14.4%

Search45.9%

H1 2017


Classifieds & Directories Search

!23.4bn !25.7bnTotal Display: 39.7%

Total Display: 40.6%


#ade

xben

chm

ark

Mobile ad spend crosses !10bn mark in H1 2018

4.0 4.2

8.2

5.1 5.3

10.4

0

2

4

6

8

10

12

Mobile Display Mobile Search Total Mobile

Mobile Ad Spend (!bn)

2017 2018Note: In the H1 2017 study, several markets were excluded from mobile due to data availability. We have restated H1 2017 to include all markets.


#ade

xben

chm

ark

Mobile is approaching a 50% share of digital ad spend

42.8% 48.9%

57.2% 51.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 2017 H1 2018

Display

Mobile Desktop

39.4% 44.7%

60.6% 55.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 2017 H1 2018

Search

Mobile Desktop

41.0% 46.7%

59.0% 53.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 2017 H1 2018

Total

Mobile Desktop

Shar

e of

form

at

Shar

e of

form

at

Shar

e of

form

at

Note: shares based on extrapolation of mobile data to all countries


#ade

xben

chm

ark

Social accounted for more than half of all display spend in H1 2018

38.8%

61.2%

H1 2017

Social Other Display

51.5%

48.5%

H1 2018

Social Other Display


#ade

xben

chm

ark


Video13.0%


13.9%

Search46.7%

Western Europe (WE)

Regional comparison of digital ad spend by format


Video9.5%


10.6%

Search42.2%

Central & Eastern Europe (CEE)

Total Display: 39.4%*

Total Display: 47.1%*

!22.1bn !3.6bn

H1 2018 H1 2018

!"#$%&'(%#))%*+%('%,--.%)*/%('%0'*&)1&2


#ade

xben

chm

ark

Mobile exhibits similar trajectories in WE & CEE

3.6 3.8

7.4

4.7 4.7

9.4

0.0

2.0

4.0

6.0

8.0

10.0


Western Europe (WE): Mobile Ad Spend (!bn)

2017 2018

0.3

0.5

0.8

0.4

0.6

1.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2


Central & Eastern Europe (CEE): Mobile Ad Spend (!bn)

2017 2018Note: In the H1 2017 study, several markets were excluded from mobile due to data availability. We have restated H1 2017 to include all markets.


#ade

xben

chm

ark

Outlook to full year 2018

0

10

20

30

40

50

60

2017 2018

2018 Forecast

H1 H2

~!53bn

48.7%51.3%

Relative Weight of 2017 Digital Ad Spend

H1 H2

! GDPR has dampened investment in digitaladvertising in H1 2018 in several markets,in particular between March and June.

! Market feedback in H2 2018 signals that thecautious climate around GDPR isimproving, suggesting stronger growth inH2.

! Assuming a slight acceleration of growth inH2 to 13%, we estimate the 2018 market toarrive at approx. !53bn.

! Factoring in measurement artifacts*, full-year growth for 2018 is likely to be between11% and 12%. Brexit remains a keyunknown that can still affect forecastsduring the vital Christmas business.

+10%

+ ~13%

!(1) A minority of national IABs report half-year data, and

often less granular than their full year reports;(2) we need to rely on estimates and our proprietary

database to a higher degree instead;(3) measurement methods and survey scope of national

IABsmay change for full year 2018.


#ade

xben

chm

ark

Appendix: reported and estimated data by market (H1 2017 / H1 2018)

Partial or full data reported by national IABs:• Denmark• Finland• France• Germany• Netherlands• Norway• Poland• Russia• Slovakia• Spain• Sweden• Turkey• UK

Estimated / modelled data:• Austria• Belarus• Belgium• Bulgaria• Croatia• Czech Republic• Greece• Hungary• Italy• Romania• Serbia• Slovenia• Switzerland

##adexbenchmark

ContactAlison Fennah – [email protected]

Marie-Clare Puffett – [email protected] Knapp – [email protected]

Connect with us:@IABEurope

IAB Europe

www.iabeurope.eu

www.technology.ihs.com

@IHS4Tech

IAB Europe AdEx Benchmark H1 2018 study FINALMobile ad spend crosses !10bn mark in H1 2018 4.0 4.2...

Documents

Transcript of IAB Europe AdEx Benchmark H1 2018 study FINALMobile ad spend crosses !10bn mark in H1 2018 4.0 4.2...