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IAB Europe AdEx Benchmark 2014
Daniel Knapp, IHSEleni Marouli, IHS
About the study
A meta analysis of online ad spend in Europe
RATECARD
Campaigns x Ratecard
GROSS
Revenue Billed
NET
Revenue Billed No Agency commissions
Submissions from 27 European countries
• 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
*New participant from 2014
Big Picture and Context
The value of European online advertising in 2014
€30.7bn
2014: Eurozone macro-recovery provides foundation for ad growth
-8
-6
-4
-2
0
2
4
62
00
4-Q
1
20
04
-Q3
20
05
-Q1
20
05
-Q3
20
06
-Q1
20
06
-Q3
20
07
-Q1
20
07
-Q3
20
08
-Q1
20
08
-Q3
20
09
-Q1
20
09
-Q3
20
10
-Q1
20
10
-Q3
20
11
-Q1
20
11
-Q3
20
12
-Q1
20
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-Q3
20
13
-Q1
20
13
-Q3
20
14
-Q1
20
14
-Q3
20
15
-Q1
GDP growth in Eurozone (%)
Eurozone France Italy Germany
Double-digit online advertising growth in 2014
27.4
30.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2013 2014
Total online advertising spend (€bn)
11.6% like-for-like
Online advertising spend has doubled in the last five years…
* Source: IAB Europe for 2011-2014; 2006-2011 retropolatedbased on IHS growth rates
6.6
9.2
14.515.8
18.8
21.9
24.4
27.4
30.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2006 2007 2008 2009 2010 2011 2012 2013 2014
Total online advertising spend (€bn)*
…while maintaining double-digit growth for five consecutive years
19.0%
16.5%
11.5% 11.9% 11.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2010 2011 2012 2013 2014
Online advertising year-on-year growth (%)
Online growth rescued overall European advertising market in 2014
0.0%
-9.5%
-1.6%
11.4%13.8%
11.7%
3.0%
-5.0%
1.8%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
WE CEE Total Europe
2014: advertising year-on-year growth (%)
Total excluding online Online Total
In Western Europe, online advertising spend per head for the first time exceeded spend on all other media in 2014
58.7
22.2
43.6
59.9
11.3
39.8
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
WE CEE Total Europe
Ad spend per capita in 2014 (€)
TV Print Online Other
Strong growth puts size of online ad market nearly on par with TV
0.7
5.2
7.8
26.8
30.7
33.5
- 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
Cinema
Radio
OOH
Online
TV
Ad spend by category in Europe in 2014 (€bn)
Markets
Over half of all European online ad spend comes from three markets; contribution by top 10 to total market stable
57.3%
69.4%
77.9%
86.6%
56.9%
69.9%
78.2%
86.4%
58.8%
70.8%
78.8%
86.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Top 3 Top 5 Top 7 Top 10
Share of European online ad revenue by market (%)
2012 2013 2014
Top 10 European online advertising markets at a glance
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Total online ad spend (€m)
2013 2014
All European markets recorded positive growth in online advertising in 2014…
43
.1%
33
.3%
32
.8%
20
.8%
19
.5%
18
.7%
17
.3%
16
.3%
16
.0%
16
.0%
14
.7%
14
.3%
13
.8%
13
.3%
12
.7%
12
.0%
11
.6%
11
.4%
11
.2%
10
.8%
9.5
%
9.3
%
8.4
%
7.8
%
7.7
%
6.6
%
2.3
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Slo
ven
ia
Irel
and
Bel
aru
s
Turk
ey
Hu
nga
ry
Bu
lgar
ia
Ru
ssia
Gre
ece
Au
stri
a
Bel
giu
m
Slo
vaki
a
UK
Swit
zerl
and
Swed
en
Fin
lan
d
Ital
y
Euro
pe
Net
her
lan
ds
Den
mar
k
Cro
atia
Serb
ia
Ger
man
y
No
rway
Po
lan
d
Cze
ch
Fran
ce
Ro
man
ia
Online ad growth like-for-like in 2014 (%)
…and 20 markets grew double-digit
BelgiumBulgaria
Croatia
Czech Republic
DenmarkFinland
France
Germany
Greece
Hungary
Ireland
Italy Netherlands
NorwayPoland
Romania
RussiaSlovakia Austria
Belarus
SwedenSwitzerland
Turkey
UK
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 20 40 60 80 100 120 140
Growth drivers
Social media
Video
Programmatic transactions and data infrastructures
Improved data literacy on both demand and supply side
Mobile internet penetration increasing across all of Europe
Measurement initiatives in mobile and video taking effect
Growth hurdles
Viewability and fraud
Some cannibalization of desktop budgets by mobile
CPM/CPC inflation
Limited inventory in video
Attribution
Measurement issues remain despite improvements
Formats
Display drove online advertising growth in 2014
9.1%
6.3%
15.5%
11.5%
14.9%
3.6%
13.0%11.9%
15.2%
5.8%
10.8%11.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Display Classifieds &Directories
Paid-for-search Total
Year-on-year growth (%)
2012 2013 2014
Display grew its share, eating into both Paid-for-search and Classifieds & Directories
47.5% 48.2% 43.8%32.2% 31.0% 32.7% 32.4% 33.8% 35.6%
18.3% 14.9% 18.9%
19.8% 20.7% 19.6% 18.5% 16.8% 15.9%
34.1% 36.6% 36.6%47.3% 48.0% 47.1% 48.8% 49.2% 48.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Format shares of online (%)
Display Classifieds & Directories Paid-for-search Other
35
.1%
34
.1%
29
.4%
26
.4%
23
.4%
23
.3%
22
.5%
18
.6%
17
.4%
16
.2%
15
.8%
15
.5%
15
.2%
14
.5%
13
.4%
12
.9%
12
.1%
11
.5%
10
.4%
10
.2%
9.1
%
8.3
%
7.3
%
4.5
%
1.2
%
-3.1
%
-5.0
%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Irel
and
Slo
ven
ia
Turk
ey UK
Swed
en
Au
stri
a
Bel
aru
s
Fin
lan
d
Ital
y
Bel
giu
m
Bu
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ia
Hu
nga
ry
Euro
pe
No
rway
Den
mar
k
Fran
ce
Net
her
lan
ds
Slo
vaki
a
Swit
zerl
and
Gre
ece
Ger
man
y
Serb
ia
Po
lan
d
Cze
ch R
epu
blic
Ro
man
ia
Cro
atia
Ru
ssia
Display advertising growth year-on-year (%)
Display showed uneven growth with a 40 percentage point range across markets
Video is now an integral part of online display advertising
30
.6%
26
.8%
25
.3%
23
.3%
22
.3%
18
.0%
17
.7%
17
.2%
16
.4%
16
.1%
15
.6%
15
.1%
14
.6%
13
.7%
13
.6%
12
.7%
11
.7%
11
.4%
11
.2%
8.7
%
7.0
%
5.8
%
5.4
%
3.9
%
3.0
%
0%
5%
10%
15%
20%
25%
30%
35%
Slo
ven
ia
Swit
zerl
and
Ru
ssia
Bel
giu
m
Bu
lgar
ia UK
Gre
ece
Swed
en
Net
her
lan
ds
Po
lan
d
Fran
ce
Euro
pe
Irel
and
No
rway
Ger
man
y
Cro
atia
Turk
ey
Au
stri
a
Ital
y
Fin
lan
d
Cze
ch R
epu
blic
Hu
nga
ry
Den
mar
k
Ro
man
ia
Bel
aru
s
Video share of Display (%)
Video growth is at least double-digit in all markets
18
7.5
%
14
3.5
%
11
5.3
%
10
0.0
%
62
.5%
60
.1%
59
.0%
57
.9%
56
.2%
53
.7%
48
.1%
42
.1%
42
.1%
40
.0%
35
.8%
30
.4%
30
.1%
28
.8%
28
.2%
27
.9%
24
.2%
22
.2%
17
.5%
17
.0%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Gre
ece
Hu
nga
ry
Au
stri
a
Bel
aru
s
Irel
and
Den
mar
k
Swed
en
Swit
zerl
and
Ro
man
ia
No
rway
Turk
ey UK
Ru
ssia
Slo
ven
ia
Euro
pe
Net
her
lan
ds
Bu
lgar
ia
Fran
ce
Po
lan
d
Ger
man
y
Cze
ch R
epu
blic
Fin
lan
d
Ital
y
Bel
giu
m
Video growth year-on-year in 2014 (%)
Mobile consolidates its position as key driver of display advertising
33
.8%
24
.5%
21
.7%
17
.7%
17
.7%
15
.4%
15
.2%
14
.6%
12
.9%
11
.1%
10
.0%
9.0
%
7.8
%
6.5
%
6.4
%
5.4
%
5.4
%
5.1
%
3.4
%
2.1
%
1.6
%
1.3
%
1.0
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
UK
Irel
and
No
rway
Euro
pe
Ital
y
Net
her
lan
ds
Ru
ssia
Fran
ce
Swed
en
Hu
nga
ry
Au
stri
a
Fin
lan
d
Ger
man
y
Den
mar
k
Po
lan
d
Serb
ia
Cro
atia
Slo
ven
ia
Turk
ey
Cze
ch R
epu
blic
Bel
aru
s
Bu
lgar
ia
Ro
man
ia
Mobile display as a share of total Display (%)
2012 2013 2014
35
.1%
34
.1%
29
.4%
26
.4%
23
.4%
23
.3%
22
.5%
18
.6%
17
.4%
15
.8%
15
.5%
14
.5%
13
.4%
12
.9%
12
.1%
9.1
%
8.3
%
7.3
%
4.5
%
1.2
%
-3.1
%
-5.0
%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Irel
and
Slo
ven
ia
Turk
ey UK
Swed
en
Au
stri
a
Bel
aru
s
Fin
lan
d
Ital
y
Bu
lgar
ia
Hu
nga
ry
No
rway
Den
mar
k
Fran
ce
Net
her
lan
ds
Ger
man
y
Serb
ia
Po
lan
d
Cze
ch R
epu
blic
Ro
man
ia
Cro
atia
Ru
ssia
Display year-on-year growth (%)
Display
This is more evident…
-20%
-10%
0%
10%
20%
30%
40%
Irel
and
Slo
ven
ia
Turk
ey UK
Swed
en
Au
stri
a
Bel
aru
s
Fin
lan
d
Ital
y
Bu
lgar
ia
Hu
nga
ry
No
rway
Den
mar
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Fran
ce
Net
her
lan
ds
Ger
man
y
Serb
ia
Po
lan
d
Cze
ch R
epu
blic
Ro
man
ia
Cro
atia
Ru
ssia
Display year-on-year growth (%)
Display Display excluding Mobile
…when we remove Mobile from Display
Mobile was responsible for 50% of market growth
European Display with
mobile: +15.2%
European Display without mobile: +7.9%
Classifieds & Directories struggled in 2014 with 11 countries experiencing decline
65
.0%
50
.0%
44
.7%
32
.5%
20
.1%
20
.1%
20
.0%
12
.5%
11
.6%
10
.7%
10
.0%
7.9
%
6.5
%
5.8
%
5.5
%
5.3
%
3.0
%
2.5
%
0.0
%
0.0
%
0.0
%
-1.2
%
-3.6
%
-6.1
%
-7.2
%
-16
.6%
-51
.6%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Cro
atia
Bel
aru
s
Bu
lgar
ia
Hu
nga
ry
Serb
ia
Slo
vaki
a
Slo
ven
ia
Swit
zerl
and
UK
Ger
man
y
Bel
giu
m
Net
her
lan
ds
Turk
ey
Euro
pe
Den
mar
k
Au
stri
a
Fran
ce
Po
lan
d
Fin
lan
d
Gre
ece
Ru
ssia
Cze
ch R
epu
blic
Irel
and
No
rway
Swed
en
Ital
y
Ro
man
ia
Classifieds & Directories year-on-year growth in 2014
Deceleration of Search in mature markets dampens overall growth
42
.7%
29
.2%
26
.9%
25
.8%
23
.1%
19
.5%
19
.0%
18
.6%
16
.7%
15
.8%
15
.8%
15
.0%
14
.0%
13
.9%
12
.2%
12
.2%
11
.9%
10
.8%
10
.5%
10
.1%
9.0
%
9.0
%
8.7
%
4.4
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Irel
and
Bel
giu
m
Ru
ssia
Bu
lgar
ia
Gre
ece
No
rway
Hu
nga
ry
Swed
en
Swit
zerl
and
Cze
ch R
epu
blic
Slo
vaki
a
Cro
atia
Au
stri
a
Ital
y
Turk
ey
Den
mar
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Net
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lan
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Euro
pe
Po
lan
d
Serb
ia
Ger
man
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Fin
lan
d
UK
Fran
ce
Paid-for-search year-on-year growth in 2014 (%)
2013 2014
40.1%
26.5%
22.2%19.1% 18.3% 17.4%
15.1% 14.3%12.5%
6.0% 5.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Mobile share of Paid-for-search in 2014
Notable part of paid-for search is now mobile
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Media advertising revenue in Europe
TV Radio Newpapers Magazines OOH Cinema Online
First market signals from IABs confirm outlook that online will command the highest share of all media ad spend in 2015
Thank you
daniel.knapp@ihs.comeleni.marouli@ihs.com