European Digital Advertising Data and Trends. Constantine Kamaras Chairman, IAB Europe
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1 European Digital Advertising Data and Trends Constantine Kamaras Chairman, IAB Europe
2 About the study
3 A meta-analysis of online ad spend in Europe GROSS NET RATECARD Spend Billed Revenue Billed No Agency commissions Campaigns x Ratecard
4 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
5 Big Picture
6 Europe: the value of online advertising in H bn
7 Online advertising grew by 11.5% in H ,2 Online advertising spend in Europe ( bn)* +11.5% like-for-like 22,
8 2.3bn added in H across 3 formats: display grows fastest, search maintains lead, classifieds & directories relatively slower 25 Online Ad Spend by Format ( bn) 12,0 Net Additions by Format ( bn) % Share of Total by Format ,5 10,7 10,0 8,0 1,0 1,2 80% 60% 47,2% 47,8% ,2 3,4 7,4 8,4 6,0 4,0 2,0 0,1 40% 20% 16,0% 14,9% 36,8% 37,3% 0 0,0 Display Classifieds & Directories Search 0% Display Classifieds & Directories Search H H net additions Search Classifieds & Directories Display
9 Online video reaches 20% of total display spend as it grows 3.2x faster than non-video display to 1.7bn in H ,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 Display by Format ( bn) 1,3 6,1 1,7 6,7 35% 30% 25% 20% 15% 10% 5% H Growth by Display Format 9,5% 30,5% Share of Display Total 100% 17,2% 19,9% 80% 60% 40% 82,8% 80,1% 20% 0,0 Non-Video Display Video 0% Non-Video Display Video 0% Non-Video Display Video
10 The expansion of video drives the share gains of total display H H Search 47,2% 20.2b n Classifieds & Directories 16,0% Non-Video Display 30,4% Video 6,3% Total Display: 36.8%* Search 47,8% 22.5b n Classifieds & Directories 14,9% Non-Video Display 29,9% Video 7,4% Total Display: 37.3% Non-Video Display Video Classifieds & Directories Search *share of total display slightly higher than sum of sub-formats due to rounding Non-Video Display Video Classifieds & Directories Search
11 Mobile ad spend reaches nearly 7bn in H ,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 2,3 Mobile Ad Spend ( bn) 3,3 3,4 2,5 Mobile Display Mobile Search Total Mobile Note: (1) Mobile display is excluding Belgium, Greece, Slovakia, Slovenia, Switzerland. (2) Mobile search is excluding Belgium, Bulgaria, Croatia, Denmark, Finland, Greece, Netherlands, Norway, Romania, Slovakia, Slovenia, Switzerland. (3) Total may not exactly correspond to subcategories due to rounding. 4,8 6,8
12 More than 1/3 of online ad spend is on mobile in H % Display 100% Search 100% Total 90% 90% 90% 80% 80% 80% 70% 60% 69,7% 61,0% 70% 60% 70,2% 63,8% 70% 60% 70,0% 62,6% Share of format 50% 40% 30% 20% 10% 30,3% 39,0% Share of format 50% 40% 30% 20% 10% 29,8% 36,2% Share of format 50% 40% 30% 20% 10% 30,0% 37,4% 0% 0% 0% Mobile Desktop Note: shares based on extrapolation of mobile data to all countries Mobile Desktop Mobile Desktop
13 Regional comparison of online ad spend by format Western Europe (WE) Central & Eastern Europe (CEE) H H Search 48,3% 19.5b n Non-Video Display 28,7% Video 7,6% Total Display: 36.3%* Search 44,5% 3.0bn Non-Video Display 37,8% Total Display: 43.9%* Classifieds & Directories 15,4% Classifieds & Directories 11,7% Video 6,1%
14 Mobile exhibits similar trajectories in WE & CEE 7,0 6,0 Western Europe (WE): Mobile Ad Spend ( bn) 6,1 0,7 0,6 Central & Eastern Europe (CEE): Mobile Ad Spend ( bn) 0,7 5,0 4,0 3,0 2,0 3,0 3,0 2,1 2,2 4,3 0,5 0,4 0,3 0,2 0,2 0,3 0,3 0,4 0,5 1,0 0,1 0,0 Mobile Display Mobile Search Total Mobile 0,0 Mobile Display Mobile Search Note: (1) Mobile display is excluding Belgium, Greece, Slovakia, Slovenia, Switzerland. (2) Mobile search is excluding Belgium, Bulgaria, Croatia, Denmark, Finland, Greece, Netherlands, Norway, Romania, Slovakia, Slovenia, Switzerland. (3) Total may not exactly correspond to subcategories due to rounding. Total Mobile
15 Outlook to full year 2017 Relative weight of 2016 online ad spend 51,9% H1 H2 48,1% Forecast ~ 46bn H1 H2 In a stable macro-environment, H1 typically has marginally lower weight in terms of its contribution to full-year online ad spend. H2 is fueled by the traditionally important Q4 Christmas business. Assuming a slight slow-down in H2 growth to 10%, we estimate the 2017 market to arrive at in the region of 46bn. Factoring in measurement artifacts*, full-year growth for 2017 is likely to be between 9.5% and 11%. * (1) Only 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 & survey scope of national IABs may change for full year 2017.
16 Contact: Alison Fennah Marie-Clare Puffett Daniel Knapp Connect with IAB
17
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