2012 Full Year and Q IAB/PwC Digital Advertising Revenue Report

Transcription

1 2012 Full Year and Q IAB/PwC Digital Advertising Revenue Report April 2013

2 Welcome 2012 IAB/PwC Digital Ad Revenue Report Agenda 2012 Full Year and Q4 Digital Ad Revenue Highlights Sherrill Mane, SVP Research, Analytics & Measurement, IAB Detailed Analysis of IAB PWC 2012 Full Year and Q4 Report David Silverman, Partner, PriceWaterhouseCoopers 2012 Digital Advertising Growth: Mobile and Video Lead the Way Linda Gridley, President and CEO of Gridley & Company LLC. Q & A p 1

3 Important Note on Q&A We will open a voice line for journalists to ask questions at the end of the presentations. IAB members should ask questions using the WebEx user interface Please type questions into the Chat box on the WebEx user interface at any time during the presentations. We will create a queue and answer as many questions as possible following the presentations. Additional press questions should be directed to Laura Goldberg: Laura.Goldberg@iab.net Additional questions from IAB members should be directed to Kristina Sruoginis: Kristina@iab.net. p 2

4 2012 Full Year and Q IAB/PwC Digital Ad Revenue Report Highlights April 2013 Sherrill Mane SVP, Research, Analytics and Measurement, IAB

5 2012 Year End Digital Ad Revenue Highlights Imagination is more important than knowledge. Knowledge is limited. Imagination embraces the entire world. -- Albert Einstein p 4

6 Year End 2012 Interactive Advertising Sets New Records 2012 annual US interactive ad revenues totaled $36.6 billion, marking the third consecutive year of double-digit annual growth. This represents a 15% (or $4.8 billion) increase from 2011 s $31.7 billion annual mobile ad revenue doubled again (111% growth) to $3.4 billion since last year. Mobile now accounts for 9% of digital ad revenue. Digital video remains the fastest growing sector of the display market, climbing 29% to $2.3 billion in And, banners show 13% annual growth reaching $7.7 billion for a 21% share of interactive ad dollars. p 5 IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report

7 Year End 2012 Interactive Advertising Sets More Records Fourth quarter 2012 revenue of $10.3 billion represents the best quarterly result ever for US interactive advertising. This is a 15% increase over same time last year ($ 9 billion in Q4 2011) Interactive advertising growth continues to outperform the total media market based on both Nielsen and Kantar estimates for Fourth Quarter and Full Year 2012 p 6 IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report

8 2012 Annual Revenue Growth Digital Ad Revenue Growth (2011 vs. 2012) $ Billions $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $ % $36.6 Total Media Ad Revenue Growth (2011 vs. 2012) The Nielsen Company estimates total media revenues grew 3% from 2011 to 2012; Kantar Media estimates a 3% increase. $5.0 $ p 7 Sources: IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2013; Kantar Press Release Apr. 2013

9 2012 Ad Revenue Growth Digital vs. Top Non-Digital Media Internet* Total Ad Revenue 2012 vs ($Billions) $31.7 $36.6 Percent Change YoY Change 15% 15% TV (incl. Network, Spot, Cable, Hisp.) $76.6 $71.8 7% 7% Magazines $15.9 $16.4-3% -3% Newspapers $13.1 $12.5 1% 4% p 8 Source: *IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report The Nielsen Company, Monitor Plus, April 2013 (Standard Calendar), Nielsen reporting classification change since last report.

10 Q Revenue Compared With Q Digital Ad Revenue Growth (Q4 '11 vs. Q 4 '12) $12.0 $10.0 $9.0 15% $10.3 Total Media Ad Revenue Change (Q4 '11 vs. Q4 '12) $ Billions $8.0 $6.0 $4.0 According to Nielsen, total media revenues grew 3% from Q to Q Kantar Media estimates a 2% increase. $2.0 $0.0 Q Q p 9 Sources: IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report; The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2013; Kantar Press Release Apr. 2013

11 Q4 Ad Revenue Growth Digital vs. Top Non-Digital Media Internet* Total Ad Revenue Q4 12 vs.q4 11 ($Billions) $10.3 $9.0 Percent Change YoY Change 15% 15% TV (incl. Network, Spot, Cable, Hisp.) $21.9 $20.7 7% 6% Magazines $4.6 $4.6-3% -1% Newspapers $3.6 $3.7 1% -3% Q4 '12 Q4 '11 p 10 Source: *IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report The Nielsen Company, Monitor Plus, April 2013 (Standard Calendar), Nielsen reporting classification change since last report.

12 Composite Average CPM Index 115 Same Sites / Ad Networks 100 = 2010 Avg. CPM: $ Composite Index 2010 Composite Index 2011 Composite Index Avg Avg. CPM slightly ahead of 2011 (+1%) More gainers than losers Sites in Finance Category show strongest gains Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: SQAD WebCosts 2012 data, Apr. 2013

13 Display Eight Category Average CPM Weighted Average - December 2012 Release $28.00 $26.00 $24.00 $22.00 $20.00 Automotive $18.00 $16.00 News $14.00 & Information $12.00 Finance / Insurance / Investment Family & Lifestyles Home and Fashion $10.00 $8.00 $6.00 $4.00 $2.00 Search Engines / Portals & Communities Entertainment Corporate Information $- 1Q_10 2Q_10 3Q_10 4Q_10 1Q_11 2Q_11 3Q_11 4Q_11 1Q_12 2Q_12 3Q_12 4Q_12 Source: SQAD WebCosts 2012 data, Apr. 2013

14 Display and Search Both Exhibit Double Digit Growth Brand spend is on the rise In 2012, Display* increased 15% over year ago to $12 billion Display-related ad formats* revenue growth driven by: Banners up 13% to $7.7 billion Digital video exhibits 29% increase, rising to $2.3 billion and showing exceptional strength in 4 th Q 2012 with an increase of 38% over YAG Impression and Performance-based ad revenue grew in 2012 at the same pace (18%) Search grew 15% over 2011 annual to $16.9 billion Election and Olympics not the primary drivers of interactive ad revenue growth p 13 *Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships. IAB/PWC 2012 Full Year and Q Digital Advertising Revenue Report

15 THANK YOU FOLLOW-UP QUESTIONS: Additional questions from IAB members should be directed to Kristina Sruoginis: Additional press questions should be directed to Laura Goldberg: Reports can be found at: