IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB...

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IAB Europe AdEx Benchmark study H1 2016 November 2016

Transcript of IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB...

Page 1: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

IAB Europe AdEx Benchmark studyH1 2016

November 2016

Page 2: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

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

expressed permission of IAB Europe and IHS Markit

Page 3: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

A meta analysis of online ad spend in Europe

RATECARD

Campaigns x

Ratecard

GROSS

Revenue Billed

NET

Revenue Billed

No Agency commissions

Page 4: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Data for 27 countries 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

Page 5: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

About the data

The content of this analysis is powered by:

1. Reported data from local IABs where available (13 of the 27 countries, covering 82% of the European market)

2. Estimates by local IABs based on local insight, in collaboration with IHS3. Estimates by IHS based on forecasts from the IHS Advertising Intelligence Service

See slide 17 for a list of markets where data is reported and estimated

This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 trends and help the understanding of and decision-making in the European online advertising market.

Page 6: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

The value of online advertising in H1 2016

€18.6bn

Page 7: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%20

04-Q

1

2004

-Q3

2005

-Q1

2005

-Q3

2006

-Q1

2006

-Q3

2007

-Q1

2007

-Q3

2008

-Q1

2008

-Q3

2009

-Q1

2009

-Q3

2010

-Q1

2010

-Q3

2011

-Q1

2011

-Q3

2012

-Q1

2012

-Q3

2013

-Q1

2013

-Q3

2014

-Q1

2014

-Q3

2015

-Q1

2015

-Q3

2016

-Q1

GDP growth in the Eurozone (%)

Eurozone France Italy Germany Spain

GDP growth across Europe underpins a strong online advertising market in 2016

Page 8: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Online advertising up 13.4% year-on-year in H1 2016

16.4 18.6

-

5.0

10.0

15.0

20.0

25.0

H1 2015 H1 2016

Online advertising spend in Europe (€bn)

+13.4%

Page 9: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

All formats noted increases in H1 2016 again

5.8 6.8

2.6 2.7

8.0 9.0

-

5.0

10.0

15.0

20.0

25.0

H1 2015 H1 2016

Online advertising spend in

Europe (€bn)

Paid-for-search

Classifieds & Directories

Display

5.8

2.6

8.0

1.1

0.1

1.1

-

2.0

4.0

6.0

8.0

10.0

Display C&Ds Paid-for-search

Online advertising spend in

Europe (€bn)

H1 2015 H1 2016 net additions

Page 10: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Mobile was the key driver of growth across formats in H1 2016

Page 11: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

H1 2015 (€bn) H1 2016 (€bn) Growth (yoy %) Share (%)

Display 5.8bn 6.8bn 18.2% 36.7%

of which video 1.1bn 1.6bn 46.0% 8.5%*

of which mobile 1.2bn 1.9bn 61.3% 10.9%*

Classifieds & Directories

2.6bn 2.7bn 3.5% 14.7%

Paid-for-search

8.0bn 9.0bn 13.3% 48.6%

of which mobile 1.2bn 1.9bn 57.3% 12.2%*

Total 16.6bn 18.6bn 13.4% 100%

Europe: H1 2016 snapshot

*The share is calculated excluding countries who didn’t report video or mobile

Page 12: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

35.2%

16.1%

48.7%

Online advertising spend in Europe

(H1 2015)

Display

Classifieds &

Directories

Paid-for-search

36.7%

14.7%

48.6%

Online advertising spend in Europe

(H1 2016)

Display

Classifieds &

Directories

Paid-for-search

Display increased its share in H1 2016 at the expense of Paid-for-search and Classifieds & Directories

Page 13: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Mobile advertising amounted to €3.8bn in H1 2016, split evenly between search and display

1,188 1,916

1,192

1,875

-

1,000

2,000

3,000

4,000

5,000

H1 2015 H1 2016

Mobile advertising spend in

Europe (€m)

Mobile display Mobile search

+61.3%

+57.3% Mobile share of search: 32.0%

Mobile share of display: 32.8% 3,683 3,910

3,898 3,979

-

2,000

4,000

6,000

8,000

H1 2015 H1 2016

Desktop advertising spend in

Europe (€m)*

Desktop display Desktop search

+6.2%

+2.1%

*The value is calculated excluding countries who didn’t report mobile

Page 14: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

H1 2015 (€bn) H1 2016 (€bn) Growth (yoy %) Share (%)

Display 5.0bn 5.9bn 17.0% 36.0%

of which video 1.0bn 1.4bn 48.2% 8.8%*

of which mobile 1.1bn 1.8bn 58.3% 11.3%*

Classifieds & Directories

2.5bn 2.6bn 3.3% 16.0%

Paid-for-search

6.9bn 7.9bn 13.8% 48.0%

of which mobile 1.0bn 1.6bn 58.6% 11.8%*

Total 14.5bn 16.4bn 13.1% 100%

Western Europe: H1 2016 snapshot

*The share is calculated excluding countries who didn’t report video or mobile

36.0%

16.0%

48.0%

WE: Online advertising

spend in H1 2016

Display

Classifieds & Directories

Paid-for-search

Page 15: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

H1 2015 (€bn) H1 2016 (€bn) Growth (yoy %) Share (%)

Display 0.7bn 0.9bn 27.1% 41.5%

of which video 0.1bn 0.1bn 26.0% 6.5%*

of which mobile 0.07bn 0.2bn 103.9% 8.0%*

Classifieds & Directories

0.1bn 0.1bn 8.4% 5.0%

Paid-for-search

1.1bn 1.2bn 9.6% 53.5%

of which mobile 0.2bn 0.3bn 50.5% 14.6%*

Total 1.9bn 2.2bn 16.2% 100%

Central and Eastern Europe: H1 2016 snapshot

*The share is calculated excluding countries who didn’t report video or mobile

41.5%

5.0%

53.5%

CEE: Online advertising

spend in H1 2016

Display

Classifieds & Directories

Paid-for-search

Page 16: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Outlook for 2016

• 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 (especially in H2 2016) • Complexity of devices, platforms, behaviours• No universal digital currency• Duplication & fragmentation of ad tech infrastructure

Drivers

Hurdles

10.5%

5.2% 5.0%4.3%

2.6%

-4.6%-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Online Cinema OOH TV Radio Print

Media ad spend growth in 2016 (%)

Source: IHS Markit

Page 17: IAB Europe AdEx Benchmark study H1 2016 November 2016 · This is an update of the full year IAB Europe AdEx Benchmark report to provide nearer-term data on 2016 ... H1 2015 H1 2016

Reported and estimated data by marketPartial or full data reported by local IABs:

• Denmark

• Finland

• France

• Germany

• Ireland

• 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