AdEx Benchmark Study H1 2018

Transcription

1 AdEx Benchmark Study H November 2018 Digital Advertising in Europe

2 The data and charts shown in this report cannot be used without the expressed permission of IAB Europe and IHS Markit All data and analysis must be quoted as IAB Europe & IHS Markit.

3 About the study

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

5 About the data The content of this analysis is informed by: 1. Reported H data from national IABs where available 2. Estimates by national IABs based on local insight, in collaboration with IHS Markit 3. Estimates by IHS Markit based on the IHS Markit Advertising Intelligence Service to: a) Fill coverage gaps and add granularity to the data provided by 13 IABs b) Provide data for markets where H data was not available from IABs 4. Harmonisation of all reported data to ensure like-for-like comparison across markets This is an interim update of the full year IAB Europe & IHS Markit Adex Benchmark study to provide nearer-term data on 2017 trends and facilitate understanding and decision-making in the European digital advertising market. All data refers to Total Europe based on the 27 countries on the next slide, unless mentioned otherwise.

6 Data for 27 markets 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

7 The size of the digital advertising market in Europe (H1 2018) 25.7bn

8 Digital advertising grew by 10% in H Digital Advertising Spend in Europe ( bn)* +10.0% H H *H restated based on fx-rate, measurement changes by national IABs, and full measurement of out-stream video

9 2.3bn added in H across 3 formats: display grows fastest, search maintains lead, classifieds & directories see slow growth Digital Ad Spend by Format ( bn) % +3.2% % Net Additions by Format ( bn) Share of Total by Format 100% 80% 45.9% 46.0% 60% 14.4% 13.5% 40% 20% 39.7% 40.6% 0 H H Display Classifieds & Directories Search 0% H H Display Classifieds & Directories Search H H Display Classifieds & Directories Search

10 Digital video reaches 30% of total display spend growing 4.2x faster than non-video display spend Display by Format ( bn) % 25% 20% H Growth by Display Format 27.9% 100% 80% 60% Share of Display Total 27.1% 30.8% % 10% 5% 6.6% 40% 20% 72.9% 69.2% 0 H H Non-Video Display Video 0% Non-Video Display Video 0% H H Non-Video Display Video

11 The expansion of video drives the share gains of total display H H Search 45.9% 23.4bn Classifieds & Directories 14.4% Non-Video Display 29.0% Video 10.7% Total Display: 39.7% Search 46.0% 25.7bn Classifieds & Directories 13.5% Non-Video Display 28.1% Video 12.5% Total Display: 40.6% Non-Video Display Video Classifieds & Directories Search Non-Video Display Classifieds & Directories Video Search

12 Mobile ad spend crosses 10bn mark in H Mobile Ad Spend ( bn) Mobile Display Mobile Search Total Mobile Note: In the H study, several markets were excluded from mobile due to data availability. We have restated H to include all markets.

13 Mobile is approaching a 50% share of digital ad spend Display Search Total 100% 100% 100% 90% 90% 90% 80% 70% 57.2% 51.1% 80% 70% 60.6% 55.3% 80% 70% 59.0% 53.3% Share of format 60% 50% 40% 30% 20% 42.8% 48.9% Share of format 60% 50% 40% 30% 20% 39.4% 44.7% Share of format 60% 50% 40% 30% 20% 41.0% 46.7% 10% 10% 10% 0% H H Mobile Desktop 0% 0% H H H H Mobile Desktop Mobile Desktop Note: shares based on extrapolation of mobile data to all countries

14 Social accounted for more than half of all display spend in H H H % 48.5% 51.5% 61.2% Social Other Display Social Other Display

15 Regional comparison of digital ad spend by format Western Europe (WE) Central & Eastern Europe (CEE) H H Search 46.7% 22.1bn Non-Video Display 26.5% Video 13.0% Total Display: 39.4%* Search 42.2% 3.6bn Non-Video Display 37.6% Total Display: 47.1%* Classifieds & Directories 13.9% Classifieds & Directories 10.6% Video 9.5% *may not add up to 100% due to rounding

16 Mobile exhibits similar trajectories in WE & CEE Western Europe (WE): Mobile Ad Spend ( bn) Central & Eastern Europe (CEE): Mobile Ad Spend ( bn) Mobile Display Mobile Search Total Mobile Mobile Display Mobile Search Total Mobile Note: In the H study, several markets were excluded from mobile due to data availability. We have restated H to include all markets.

17 Outlook to full year 2018 Relative Weight of 2017 Digital Ad Spend 51.3% H1 H2 48.7% Forecast + ~13% +10% ~ 53bn H1 H2 GDPR has dampened investment in digital advertising in H in several markets, in particular between March and June. Market feedback in H signals that the cautious climate around GDPR is improving, suggesting stronger growth in H2. Assuming a slight acceleration of growth in H2 to 13%, we estimate the 2018 market to arrive at approx. 53bn. Factoring in measurement artifacts*, fullyear growth for 2018 is likely to be between 11% and 12%. Brexit remains a key unknown that can still affect forecasts during the vital Christmas business. * (1) 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 and survey scope of national IABs may change for full year 2018.

18 Appendix: reported and estimated data by market (H / H1 2018) Partial or full data reported by national IABs: Denmark Finland France Germany 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

19 Contact Alison Fennah Marie-Clare Puffett Daniel Knapp Connect IAB Europe