IAB report on online ad-spend Affiliates results 2011
IAB Online Ad Spend Study 1 IAB report on online ad-spend - DRAFT
2011 Results
Online Advertising Market 3 IAB report on online ad-spend - DRAFT
Total spend on affiliate marketing in The Netherlands is 117m Spend on affiliate marketing ( m) Affiliate revenue by publisher model 3% 7% 8% 3% Social Media Advertising networks Coupon codes Search (SEO/SEA) 13% Comparison sites 117 20% Cashback and loyalty 46% Topic publishers Publisher model Note: Division of revenue by publisher model based on data from an estimated 59% ( 68.6m) of the total market Source: Jochem Vroom Affiliateblog/Imbull BV; Survey respondents; Deloitte analysis 4 IAB report on online ad-spend - DRAFT
More than half of affiliates display advertising revenues come from traditional embedded formats Display advertising breakdown by format* 44% Textlinks (incl. AdSense) 56% Embedded formats Display formats *n=7 representing 68.6m Note: Embedded formats are for example traditional banners and skyscrapers Source: Survey respondents, Deloitte analysis 5 IAB report on online ad-spend - DRAFT
For affiliate marketing CPS model is the default revenue model Affiliate advertising revenue per payment model** Fixed Fee CPC Other 2% 3% CPL 2% 15% 78% CPS *n=4 representing 39.7m **n=6 representing 62.6m Note: In-app only includes revenues from survey respondents and excludes revenues from players such as Google and Apple Source: Survey respondents, Emerce.nl, Deloitte analysis 6 IAB report on online ad-spend - DRAFT
Display revenue per medium (website, mobile, e-mail) 7 IAB report on online ad-spend - DRAFT
Online retail and Financial services advertisers dominate affiliates revenue share, Consumer goods and automotive advertisers are underrepresented Industries by revenue share affiliates* Industries by revenue share all respondents 2011 Online retail 27% 2011 Online retail 9% Financial services 26% Financial services 14% Telecom 18% Telecom 10% Travel 13% Travel 7% Fashion 6% Fashion 2% Energy 3% Energy 1% Consumer goods 1% Hardware & electronics 1% Free time 0% Consumer goods Hardware & electronics Free time 2% 4% 17% Personal care 0% Personal care 3% Automotive 0% Automotive 7% Public sector 0% Public sector 3% ICT Services 0% ICT Services 2% Retail 0% Retail 2% *n=4 representing 40.3m ** includes free time, personal care, automotive, public sector, ICT services, retail Note: Excluding classifieds, directories & listings, search and industry category other; All respondents includes affiliates and publishers Source: Survey respondents, Deloitte analysis 8 IAB report on online ad-spend - DRAFT
Outlook
The Dutch economy is expected to experience slow growth over the next two years Dutch GDP projections ( b) Comments 650 625 600 575 550 542 551 560 1.4% 567 576 6% 3% 0% -3% The economy seems to keep an easy pace as the Dutch GDP is expected to grow at a steady 1.4% for the coming two years Following the sharp recovery in 2010 in the advertising market, future growth is expected to be more in line with GDP 525 500-6% 475-9% 450 425-12% 400 2009 2010 2011 2012F 2013F -15% GDP GDP Growth rate YoY Total advertising growth rate YoY Note: Real GDP based on constant prices Source: IMF, Deloitte analysis 10 IAB report on online ad-spend - DRAFT
TV and online are expected to grow the most in both absolute and relative terms Estimated advertising market ( m) 5,000 1.8% Comments 4,000 3,000 2,000 3,827 219 571 885 1,184 5 149 4,169 4,028 4,095 5 5 150 158 230 233 235 547 484 452 965 1,059 1,091 1,177 1,088 1,045 6 165 Expected growth for the total advertising market in The Netherlands in 2012 is 1.8% The online advertising market is expected to become the largest market in 2012 Newspapers and magazines are expected to continue their steady decline Radio is expected to remain stable through 2012 Outdoor is expected to grow steadily 1,000 815 954 1,068 1,175 0 2009 2010 2011E 2012F Cinema Outdoor Radio Magazines TV Newspapers Internet Source: Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau; Company annual reports, Deloitte analysis 11 IAB report on online ad-spend - DRAFT
SoA (%) As consumers spend more time online, advertisers are expected to respond similarly to rebalance the value of the difference media types Time spend vs SoA* (2011) 50 = Indicative direction and speed 45 40 Newspapers 35 30 25 Internet TV 20 15 10 5 Magazine Radio 0 0 5 10 15 20 25 30 35 40 45 50 Time spend (%) * SoA = Share of Advertising Note: Share of Advertising based on collected 2011 data; Time spend based on most recent available findings from SPOT Source: Trends tijdsbesteding 2010 SPOT, Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau, Deloitte analysis 12 IAB report on online ad-spend - DRAFT
Affiliate respondents predict a 14.9% market growth in 2012 weighted by respondent revenues as compared to 7.7% for the market at large Affiliate survey respondents growth expectations 50% 45% Overall survey respondents growth expectations 50% 50% 45% 40% 40% 30% 30% 20% 10% 20% 20% 10% 10% 10% 14.9% 20% 10% 20% 20% 20% 18% 15% 15% 12% 12% 10% 15% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 8% 8% 7% 5% 5% 5% 4% 2% 7.7% 0% Respondents* 0% Respondents *n=6 representing 60.7M Note: Growth expectation calculated by weighting responses with company revenue; overall market includes affiliates and publishers Source: Survey respondents; Deloitte analysis 13 IAB report on online ad-spend - DRAFT
Appendix
Methodology Online advertising market 8 affiliate companies reported their data based on the questionnaire The data gathered comprises 59% of the total market by revenue The figures are drawn up on the basis of site declaration and have not been verified 15 IAB report on online ad-spend - DRAFT
Definitions Categories Payment models Display - Embedded formats (banners, buttons, skyscrapers etc) - Interruptive formats (rich media, over the page, page take-over etc) - Tekstlinks (incl. AdSense) - Video (pre-/mid-/ postroll) - Other uncategorized display advertising Online classifieds, directories & listings - B2B - B2C - C2C Fixed Fee: Payment model based on a fixed fee CPM: Cost per Mille = Payment model where the advertiser pays per thousand viewers CPC: Cost per Click = Payment model based on the number of clicks on an advertisement CPL: Cost per Lead = Payment model that is based on the number of leads generated. A lead is an online conversion where the consumer shares its contact details and indicates to be interested CPS: Cost per Sale = Payment model based on the number of sales generated 16 IAB report on online ad-spend - DRAFT
Contact For questions concerning this research feel free to contact: Roel van Rijsewijk Deloitte Online Business Innovation Tel: +31 (0)6 52615087 Email: rvanrijsewijk@deloitte.nl Roel van Rijsewijk is a Director with the Risk Services practice from Deloitte with more than 10 years of experience in risk consulting for companies in the Technology, Media & Telecommunications (TMT) industry. Roel leads one of Deloitte s main innovation projects on ethics and trust in a digital world and is co-founder of Deloitte s Online Business Innovation group Gagandeep Sethi Deloitte Consulting Strategy Tel: +31 (0)6 13127167 Email: gasethi@deloitte.nl Gagandeep Sethi is a Manager in the Corporate Strategy practice of Deloitte Consulting Netherlands with more than 10 years of experience within the Technology, Media & Telecommunications (TMT) industry. Internet Advertising Bureau IAB Nederland Tel: +31 (0)20 531 51 19 Email: Lauren@iab.nl Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB commissioned research and assisting IAB members with their research projects. Also responsible for shaping the IAB knowledge base so that it meets members' needs moving forward 17 IAB report on online ad-spend - DRAFT
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