IAB Europe Adex Benchmark 2013

Size: px
Start display at page:

Download "IAB Europe Adex Benchmark 2013"

Transcription

1 IAB Europe Adex Benchmark 2013 Daniel Knapp Director Adver=sing Research IHS

2 ABOUT THE STUDY

3 A meta- analysis of online ad spend in Europe GROSS NET RATECARD Revenue Billed Revenue Billed No Agency commissions Campaigns x Ratecard

4 Submissions from 26 European countries Austria Belgium Bulgaria Czech Republic Croa=a Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Russia Romania Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey UK

5 Added format granularity & context

6 BIG PICTURE & CONTEXT

7 The value of online adver=sing in bn

8 Eurozone economy is coming out of a double- dip recession GDP Growth in Europe (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q1 Eurozone GDP Growth France GDP Growth Italy GDP Growth Germany GDP Growth - 8

9 Double- digit growth in online adver=sing in Total online adver8sing ( bn) 11.9% like- for- like

10 A historical perspec=ve Total online adver8sing spend ( bn)* * Source: IAB Europe for ; retropolated based on IHS growth rates

11 In a vola=le market environment, online li`ed overall ad spend 25% 20% 2013: adver8sing year- on- year growth 21.2% 15% 10% 10.8% 11.5% 5% 0% - 5% - 10% - 7.8% 1.8% WE - 2.5% - 2.5% CEE Total Europe - 1.7% - 6.7% Total excl. online Online Total

12 Despite economic turmoil, online grew its ad spend per capita steadily since Ad spend per capita ( ) TV Online Print Other media

13 Due to weak 2013 for all other media, online strengthened its posi=on as it approaches TV Ad spend by category in Europe in 2013 ( bn) TV 32.3 Online 27.3 Newspapers 20.0 Magazines 9.1 OOH 7.6 Radio 5.2 Cinema

14 However, no one online category has yet surpassed Newspapers ad spend Ad spend by category in Europe in 2013 ( bn) TV 32.3 Online 9.2 Newspapers 20.0 Display Magazines OOH Classifieds & Directories Search Radio 5.2 Cinema

15 Over half of all European ad spend comes from three markets 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Share of European online revenue by market 86.6% 86.4% 77.9% 78.2% 69.4% 69.9% 57.3% 56.9% Top 3 Top Top 7 Top 10

16 A`er a tough year, Sweden increases in rank, helped by economic crisis in Spain 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Total online ad spend ( m) 7,381 4,676 3,494 1,843 1,703 1, UK Germany France Russia Italy Netherlands Sweden Spain Norway Denmark

17 Growth drivers Social media Video Rich media Mobile internet penetra8on increasing across all of Europe Programma8c and RTB come into the mainstream E- commerce driving C&D growth

18 Growth hurdles AQrac8ng brand spend online Measurement Mobile Video inventory s8ll very limited TV dominance in some European markets Data literacy Regula8on

19 Mix of CEE and WE markets above European average; Russia and Turkey only 2 markets above 20% 30% Online ad growth like- for- like (yoy) 25% 20% 15% 11.9% 10% 5% 0% - 5%

20 40% 35% 30% Russia Bubble size: market value in m Online ad market growth 25% Turkey 20% Slovakia Austria Norway Serbia UK 15% Hungary Italy Czech Republic Switzerland Romania 10% Poland Germany Greece Ireland Croa=a Finland Sweden 5% Denmark Bulgaria Spain France Netherlands Belgium 0% Slovenia - 5% Online ad spend per capita ( ) - 10%

21 Uniform growth paferns in % Online adver8sing growth year- on- year (%) 40% 30% 20% 10% 0% - 10% %

22 The range of growth is converging across Europe 40% 35% 30% 25% 20% 15% 10% 5% 0% - 5% - 10% Online adver8sing growth year- on- year (%)

23 FORMATS

24 Accelera=on in Display growth, Display and Search drove online ad spend in % 16% 14% 12% 10% 8% 6% 4% 2% 0% Year- on- year growth (%) 14.9% 15.5% 13.0% 11.5% 11.9% 9.1% 6.3% 3.6% Display Classifieds & Directories Paid- for- search Total

25 Search and Display grow their share at the expense of Classifieds & Directories Format shares of total online 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 34.1% 36.6% 36.6% 47.3% 48.0% 47.1% 48.8% 49.2% 18.3% 14.9% 18.9% 19.8% 20.7% 19.6% 18.5% 16.8% 47.5% 48.2% 43.8% 32.2% 31.0% 32.7% 32.4% 33.8% Display Classifieds & Directories Paid- for- search Other

26 A renaissance of Display adver=sing: mature markets saw strongest growth in % Display adver8sing growth year- on- year (%) 30% 25% 20% 15% 14.9% 10% 5% 0% - 5% - 10%

27 Online video is now a significant part of Display adver=sing 35% 30% 25% 20% 15% 10% 5% 0% Video share of Display 13.1%

28 Growth in video strong, but no country achieves triple- digit growth 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Online video growth year- on- year (%) 45.4%

29 Video ad spend mirrors total online ad spend ranking Online video ad spend ( m)

30 Mobile now has a double- digit share of online display 30% 25% 20% 15% 10% 5% 0% 11.5% Mobile display as a share of total Display

31 This is more evident Display year- on- year growth (%) 35% 30% 25% 20% 15% 10% 5% 0% - 5% - 10% Display including mobile

32 when we remove Mobile from Display Display year- on- year growth (%) 35% 30% 25% 20% 15% 10% 5% 0% - 5% - 10% Display including mobile Display without mobile

33 Mobile is most important growth engine for online display European Display with mobile: +14.9% European Display without mobile: +1.1%

34 Classifieds & Directories struggled in 2013 with 11 countries experiencing decline 40% Classifieds & Directories year- on- year growth (%) 30% 20% 10% 3.6% 0% - 10% - 20% - 30%

35 Con=nued growth in Paid- for- search shows the success of the format Paid- for- search year- on- year growth (%) 40% 35% 30% 25% 20% 15% 13.0% 10% 5% 0% - 5%

36 Like in Display, Mobile is now a significant driver of Paid- for- search 30% Mobile search as a share of Paid- for- search (%) 25% 20% 15% 12.6% 10% 5% 0% Ireland Austria UK Europe Sweden Germany France Hungary Spain

37 OUTLOOK

38 By 2020, we expect there to be 2bn connected devices across Europe 2,500 Europe: Installed connected devices (m) 2,000 1,500 1,

39 With growth driven by smartphones, tablets and smart TVs 2,500 2,000 1,500 1, Digital media adapters Pay TV set- top boxes FTA set- top boxes BD players Smart TVs PCs Game consoles Tablets Smartphones Europe: Installed connected devices (m)

40 What this means is that there will be a huge increase in very small screens, sub- 15 Average Screen Size by 5" category Screen size (diagonal inches) 110"- 114" 90"- 94" 80"- 84" 70"- 74" 60"- 64" 50"- 54" 40"- 44" 30"- 34" 20"- 24" 10"- 14" 0"- 4" Shipments (m)

41 Thank you! Ques=ons? Daniel