The Netherlands 2015 · 2016. 9. 15. · IAB and DDMA Report on Search Advertising The Netherlands...

IAB and DDMA Report on Search Advertising

The Netherlands 2015

June 2016

© 2016 Deloitte The Netherlands


Introduction

“Last year we performed the first National Search Study. Due to that moment the Dutch search market has always been virtually uncharted territory when it comes to quantitative studies. As Search Marketing specialists we’ve always been depending on data and insights from large Search Publishers and International Studies.This Study has been initiated to change that situation, by collecting local CPC, position and CTR data and discover trends within the Dutch Search market. The success of the first edition enabled us to perform the second edition, this year in collaboration with DDMA Search Council we were able to perform an extended Study. As a branch organization we have been pleasantly surprised by the amount of enthusiasm and cooperation we have received. A large number of agencies have embraced this research and recognized its importance by participating and sharing their data. This holds great promise for the future of this study”

Arjen Hettinga IAB Taskforce Search

Jeroen VerkroostIAB Netherlands

“Search advertising has become crucial. Advertisers and marketers can no longer afford to leave it to the experts. In today's market, digital advertising is about 40% of total advertising spend. Search advertising takes about half of that digital spend. That means that if you are advertising, this report is about a single channel that takes 20% of your marketingbudget… Time to pay attention”

Nathalie La Verge Deloitte

“The continuous increase of digital marketing spend in general combined with the search functionality embedded in the whole customer journey, promises an interesting future for Search within the entire digital marketing ecosystem.”

Diana JanssenDDMA

“Search marketing has developed immensely the last couple of years and has become an important part of a customer centric marketing approach. Tooling is being connected and more and more data is being collected while search engines are demanding relevance. Therefore it is one of the channels that can really contribute to communicating with customers in a way that they can actually appreciate. ”



Report on Search Advertising

Methodology

3

Collection

Deloitte collects data covering the majority of the market

1Aggregation

Participants’ data is processed based on desk research and expert opinions

2Conversation

Initial findings are verified with industry experts and media buyers

3Validation

Findings are cross-referenced and validated with selected respondents

4Publication

Final findings are presented to IAB Netherlands/DDMA and industry participants

5

Survey methodology

• Our current report is based on 13 participating

agencies which represent large share of Dutch

advertisers

• The figures are drawn up on the basis of company

input and have not been verified by Deloitte

• Only aggregated results are published, individual

company information is held in strict confidence

with Deloitte

Research

Initial findings from processed data are interpreted

by Deloitte and research group members of IAB

Taskforce search and DDMA:

• Arjen Hettinga (Oogst)

• Martijn de Kruijk (StormMC)

• Jeffrey Bleijendaal (eMatters)

• Maarten de Graad (Nochii)



Paid Search Advertising

Executive summary

4IAB and DDMA Report on Search Advertising

CTR

Advertisers achieve higher Click Through Rate (CTR) for paid search results in 2015 for Finance keywords with top position CTR increasing from 18,2% to 22,1% in 2015. Whilst the CTR curve for Travel keywords remains stable, the CTR for top position Retail keywords declined from a CTR of 13,3% in 2014 to 9,7% in 2015.

Google Shopping

Retail more than tripled the budget spend on Google Shopping. The share of advertising spend on Google Shopping increased from 6% in 2014 to 23% in 2015.

Branding Search

For all Industries in scope spend on Branding Keywords (keywords with a brand name included) increased. The share in Retail almost doubled from 6% in 2014 to 11% in 2015.

CPC

The Cost per Click (CPC) for 1st position for Finance and Retail related keywords increased with +3% and +2% respectively, whilst the CPC for Travel related keywords declined with -17%. Advertisers are bidding an average CPC of 9,2€ for Finance related keywords to be able to reach best page position.

Mobile

The share of paid search spend on phone searches increased significantly. In 2015 about half of the search spend (49%) for Travel and Retail keywords is allocated on mobile devices (phone + tablet). The spend of Finance keywords on mobile is less (38% of budget) however the share of phone more than doubled from 9% to 19% share of revenue in 2015.

Scope

The scope of this research includes high volume generic keywords during December 2013, 2014 and 2015 within Google Search. The keywords are determined by IAB Taskforce Search and its high volume scope verified by Google Netherlands.

© 2016 Deloitte The Netherlands 5IAB and DDMA Report on Search Advertising

Search Advertising


The paid search advertising market realized strong growth throughout the last years

Online advertising market 2013 - 2016

6

711 787839 897

544

609673

7331255

1396

1512

1630

2013 2014 2015 2016F

+11,9%

+9,0%+10,5%

+10,8% +6,6% +6,8%

Net/Net Online Advertising market (m€)

Paid Search

Display and

Classifieds

In recent years paid search advertising shows an incredible double digit growth and accounts for a large share (45%) of the total online advertising market.In this study, data is segmented based on the device (desktop, phone, tablet) and on the type of advertising:• Branding advertising includes advertising

while searching for branded keywords such as “OHRA”, “Nike”, “KLM”.

• Non branding advertising includes advertisements while searching for generic keywords such as “verzekering”, “schoenen”, “vliegtickets”.

• Shopping advertising appears on the right side of the search results in Google. This type of advertising works with both branded and non branded keywords in the retail industry.

Source: IAB report on Online Advertising Spend The Netherlands 2015



Paid search advertising per device per industry

Spend on Paid search

7

2014 2015 Within the Retail and Travel industry half of the search spend is on mobile devices (both 49%).The finance industry has the lowest spend on mobile search advertising (38% on phone/tablet) but is quickly gaining share with phone doubling in market share (from 9% in 2014 to 19% in 2015).

The share of tablet advertising is stable within Finance and Travel and declines slightly within the Retail industry.

Finance

Retail

Travel

“The large increase in market share for Mobile is as expected, since mobile traffic is constantly rising in all industries and across all channels. The mobile device is more and more used for orientation in the customer journey, while Desktop and Tablet devices will most likely be the devices the purchase or booking is made on. This fact calls for a different approach of the medium Search, since it has a large impact on old fashioned strategies usually focusing on Desktop. Running mobile only campaigns are no longer an option but almost a necessity. Furthermore we expect a decline of tablet traffic over 2016, with a larger traffic spread between Mobile and Desktop since the technical differences between tablet and mobile devices are disappearing.”

Maarten de GraadNochii Online Marketing

73%

9%

18%

62%19%

19%

57%14%

29%

51%

20%

29%

Desktop

Tablet

Phone

Desktop

Tablet

Phone

Desktop

Tablet

Phone

Share of paid search spend per device

Source: Survey respondents, Deloitte analysis


52%

18%

30%

51%

22%

27%


This research includes keywords for the industries: Finance, Retail and Travel

Generic high volume keywords

8

Finance

Travel

Retail

BrandedLongtailGeneric high volume

Car insurance Health InsuranceLoans Mortgage

goedkope autoverzekeringgoedkope zorgverzekeringgeld lenenhypotheek

verzekering voor oldtimerszorgverzekering met lenzengeld lenen met schuldenhypotheek tweede huis

AEGON autoverzekeringCZ zorgverzekeringlening ABNhypotheek Rabobank

Books & MediaElectronicsFashionHome & Garden

KookboekLaptopSneakersTuinstoelen

Suikervrij kookboekLaptop met 17inch schermSneakers voor smalle voetenTuinstoelen van riet

De laatste mijlHP laptopNike sneakersTuinstoelen Leenbakker

TicketingHotelsTravel package

VliegticketsHotelovernachtingCitytrip

WereldticketDiervriendelijk hotel boekenNYC citytrip

KLM VliegticketNH hotelsTUI citytrips

Scope of industry segments and keywords examples



How a search advertiser spends its money

Spend on Paid search

9

What is the share of the advertisers budget on longtailversus generic high volume keywords?

What is the share of the advertisers budget per paid search rank position?

Only 10% of search advertising is spend on high volume keywords (top 8 keywords with highest volume of every category). The majority of the budget is spend on unique / specific keywords. Between 2014 and 2015 we have measured a trend of relative more spend on longtail keywords with advertisers moving away from the highly competitive keywords.

Almost half of the advertisers budget is spend in the 1st

position (for generic high volume keywords). Thedifference between the lower positions is high due to the steep CTR curve.

We have estimated the spend per position bycombining the CTR/ CPC and the number of impressions per position curve.

10%

90%

Generic high volume keywords

Longtail keywords

No 1

48%

No 2

25%

No 3

13%

Other

14%




CPC development for generic high volume keywords per industry

Paid search prices

10

Dec 2013Growth 13/14

Dec 2014Growth14/15

Dec 2015

Finance 7,3 € +22% 8,9 € +3% 9,2 €

Retail 0,88 € +7% 0,94 € +2% 0,96 €

Travel 1,4 € +17% 1,7 € -17% 1,4 €

The CPC for first position has declined for Travel in 2015, returning to the same price level as of 2013. Within Travel the prices of hotel keywords declined while the prices for ticketing keywords kept stable. A possible effect of decline in prices is reduced competition due to the shift towards longtail keywords.

Finance and Retail showed only a marginal increase in CPC price. Within Finance, keywords for insurance increased while keywords for loans decreased. For Retail, the home & garden category showed an increase in price whilst keywords for electronics showed a decrease in price.

“Things changed. As advertisers, clients and users of Google, we’re all spectators of the development and optimization of Search Engine Result Page (SERP). In 2015 the improvements regarding to SERP affecting the CPC are not worth mentioning. Nonetheless, just when things were starting to feel comfortable Google announced a major change. By removing the right hand side ads, Google increased the visibility of Product Listing Ads (PLA’s). With few top positions and high volume non-branded keywords advertisers are heavily competing for prime positions. The consequence being that alternative and, most likely, more profitable verticals become more attractive.”

Martijn de KruijkStorm Digital


Average CPC for 1st position



CPC per position for generic high volume keywords per industry

CPC value per position

11

0%

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 10


Position

CPC price relative to 1st position

Finance

Retail

Travel

Similar to last year results the CPC prices for keywords in the Retail and Travel industry decline much faster per position than those in Finance.

“The graph clearly shows for Travel the highest positions are the most important. Advertisers are battling for the top of the Search Engine Result Page (SERP) what drives up the CPC for those positions. For Retail and especially Finance the graph is less steeper and more gradual.Since this is 2015 data and end of February 2016 Google changed the SERP concerning the way the ads are shown (4 top positions and no more text ads on the right side of the screen) these graphs shall be different. Also interesting will be the Retail graph since Shopping-ads are still shown on the right side of the SERP.”

Jeffrey BleijendaalEmatters



Finance


Spend development for each advertising type and device in Finance

Spend on Paid search - Finance

13

2015

2014

Non BrandingBranding

Desktop

Tablet

Phone

Desktop

Tablet

Phone

Branding

Non branding

Branding advertising includes keywords with a brand such as “OHRA”, “Nike”, “KLM”. Non branding advertising includes only generic keywords such as “verzekering”, “schoenen”, “vliegtickets”.

Advertising on branding is relative large within the Finance industry with a large share (24% in 2015) of the budget spend. Within non branding keywords the spend on Phone devices is growing strong with a share increase from 9% to 21% in 2015.



18%

82%

24%

76%

69%9%

22%

65%13%

22%

74%

9%

17%

60%21%

19%


CTR and CPC for generic high volume keywords in Finance

Paid search CTR and CPC value per position - Finance

14

Paid search CTR per position - Finance CPC relative to 1st position - Finance

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10

0%

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 10

- Paid CTR 2015

- Paid CTR 2014

- Paid CTR 2013

CPC 2015

CPC 2014

The CTR for the top position keywords in Finance increased during 2015.

CPC declines faster from 1st position in relation to the previous year.

Source: Survey respondents, Deloitte analysisPositionPosition



Retail


Spend development for each advertising type and device in Retail

Spend on Paid search - Retail

16

2015

2014


Desktop

Tablet

Phone

Desktop

Tablet

Phone

Branding

Non branding

Shopping


Adjustments in Google shopping during 2015 had a huge impact within the Retail industry increasing from 6% to 23% market share. Branding keywords almost double in share mainly due to the growth of branding keywords on phone.

Shopping

Desktop

Tablet

Phone6%

88%

6%

11%

66%

23%

56%21%

23%

42%

33%

25%

49%

19%

32%

54%

18%

28%

80%

10%

10%

54%

18%

28%



CTR and CPC for generic high volume keywords in Retail

Paid search CTR and CPC value per position - Retail

17

Paid search CTR per position - Retail CPC relative to 1st position - Retail

CPC 2015

CPC 2014

The CTR for Retail keywords declined in performance on all positions during 2015.

The CPC per position shows a similar curve in 2015 compared to 2014.


0%

5%

10%

15%

1 2 3 4 5 6 7 8 9 10

0%

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 10


- Paid CTR 2015

- Paid CTR 2014

- Paid CTR 2013


Travel


Spend development for each advertising type and device in Travel

Spend on Paid search - Travel

19

2015

2014


Desktop

Tablet

Phone

Desktop

Tablet

Phone

Branding

Non branding

Similar to the other industries the share of advertising spend on branding keywords is growing within the Travel industry. The share of branding increased with 4 percentage points with 19% of the total budget spend on branding keywords. Between branding and non branding keywordsthere is little difference between the allocation of budget per device.


15%

85%

19%

81%

56%

14%

30%

52%

22%

26%

57%14%

29%

51%

19%

30%

“Just like the rest of the market we invest more in mobile presence on phone and tablet, both in brand and non brand keywords. The main growth is on non branded keywords, reaching new audiences in aneffective way. We invest in those devices where ourclients want to communicate with us, and where ourclients are searching for a holiday.”

Edwin HoffTUI



Paid search CTR per position - Travel CPC relative to 1st position - Travel

0%

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 100%

5%

10%

15%

20%

1 2 3 4 5 6 7 8 9 10

CTR and CPC for generic high volume keywords in Travel

Paid search CTR and CPC value per position - Travel

20

- Paid CTR 2015

- Paid CTR 2014

- Paid CTR 2013

CPC 2015

CPC 2014The CTR for travel industry keywords shows similar performance over the past 3 years.

In 2015, the CPC for lower positions is relatively much cheaper compared to the price paid for top position.




Background information & Contact details


Source data to results

Background information

22

CTR (Position)

Weighted nonlinear least squares fitting (function based on best fit):

Webmaster Tools – Google• Position (Organic)• CTR

AdWords – Google• Position (Paid)• CPC• CTR• Spend

SEA/SEO data points: Aggregating: Results (CTR):

Through invitation by IAB, DDMA and BvAunder its members to participate, 13companies* contributed to this study, including: Oogst, Sentimo, S&S Online Marketing, Suite Seven, Searchresult, ClickValue, Storm Marketing Consultants, Semwerkt, Stramark, S&D Interactive Media, Ematters BV, ING.

Dataset: Multiple data points for 64 generic high volume keywords for Finance, Retail and Travel.

Finance CTR A B C

Paid Dec 2013 0,158 -0,35 0

Paid Dec 2014 0,182 -0,35 0

Paid Dec 2015 0,221 -0,44 0

Retail CTR

Paid Dec 2013 0,094 -0,32 0

Paid Dec 2014 0,133 -0,32 0

Paid Dec 2015 0,097 -0,51 0

Travel CTR

Paid Dec 2013 0,146 -0,36 0

Paid Dec 2014 0,159 -0,36 0

Paid Dec 2015 0,143 -0,35 0

CPC (Position)

Industry categories (i = 0,1,...,n)

Weights = Spend / CPC

* Including participating companies that requested to be undisclosed in this research

Note: CPC calculated parameters (e.g. Ai,Bi) are not reported due to traceable individual participant data in one or more categories



For questions regarding this research feel free to contact:

Contact details

23

Nathalie La VergeDeloitte | Technology, Media & TelecommunicationsTel: +31 (0)6 23 367 886Email: [email protected]

Nathalie La Verge is a manager within the Deloitte Risk Advisory practice with more than 10 years of experience in risk consulting for companies in the Technology, Media & Telecommunications (TMT) industry. Nathalie leads all Deloitte projects commissioned by IAB.

Jeroen VerkroostIAB Nederland Tel: +31 (0)85 401 0802Email: [email protected]

Jeroen Verkroost is responsible for Dutch IAB research, including the IAB Netherlands/ Deloitte Ad Spend Study, all IAB commissioned research, and assists Dutch IAB members with their research projects. Also responsible for shaping the IAB knowledge base so that it meets members' needs moving forward.

Diana JanssenDDMA Tel: +31 (0)20 4528413Email: [email protected]

Diana is Director-general of the DDMA. DDMA’s goal is to enable development and improve qualityof Data Driven Marketing for its associatedmembers and the digital industry.

Jorrit SlootDeloitte | Data AnalyticsTel: +31 (0)6 82 019 387Email: [email protected]

Jorrit Sloot is a senior consultant within the Deloitte Risk Advisory practice and specialized in risk analytics, data modeling, mathematical and quantitative data analyses for the Digital industry.

Philip SpaasChairman IAB Taskforce SearchTel: +31 (0)20 715 5220Email: [email protected]

Philip Spaas is chairman of the IAB Taskforce Search, which consists of the major search marketing agencies in The Netherlands. Our mission is to promote the knowledge , transparency and innovation in the Dutch market for search engine marketing, both SEO and SEA. We organize events, initiate market research and promote education.

Jeffrey BleijendaalDDMA Search CouncilTel: +31 (0)20 707 3690Email: [email protected]

The DDMA Search Council unites the top Search experts in the Netherlands. Within the council they share knowledge and initiate research, education projects, publications and events to promote knowledge in the Dutch market for both SEO and SEA.


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The Netherlands 2015 · 2016. 9. 15. · IAB and DDMA Report on Search Advertising The Netherlands...

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