IAB / PwC UK Digital Adspend Study H1 2013 · UK GDP - Second quarter of continuous growth...

IAB / PwC UK Digital Adspend Study

H1 2013

1. MARKET

BACKGROUND

&TRENDS

Confidence in the economy grows

UK GDP - Second quarter of continuous growth G

DP

Qua

rter

on q

ua

rter

gro

wth

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2

Summer of 2013

2013 was the ninth

warmest since records

began in 1910.

Andy Murray wins Wimbledon!

• Andy Murray's victory at

Wimbledon generated

120,000 Tweets per

Minute

• During the match, 8 of

the UK’s 10 trending

topics were Wimbledon-

related

SOURCE: http://digital-stats.blogspot.co.uk/2013/07/andy-murrays-victory-at-wimbledon.html

http://digital-stats.blogspot.co.uk/2013/07/andy-murrays-victory-at-wimbledon.html












Royal birth announced on social media first

• Clarence House

tweeted about the royal

birth at 4.24pm, before

the official announcement

• It was retweeted over

15,000 times

• Generated 25,300

tweets sent per minute.

Broadband speeds rose by 64%

Fixed-line residential

broadband speeds

rose by

64% (5.7Mbit/s) since May

2012

4 in 5 UK households

now have a

residential

broadband

connection

0

2

4

6

8

10

12

14

16

Avera

ge s

peed (

Mbit/s

):

SOURCE: OFCOM report: http://media.ofcom.org.uk/2013/08/07/average-uk-broadband-speed-continues-to-rise/

http://media.ofcom.org.uk/2013/08/07/average-uk-broadband-speed-continues-to-rise/














Device ownership – June 2013

69% SMARTPHONE % OF TOTAL

DIGITAL POPULATION

28%

TABLET % OF TOTAL

DIGITAL POPULATION

12% (Jun 2012) 58% (Jun 2012)

SOURCE: UKOM, comScore MMX MP, July 2013

PC still dominating page views, but mobile

and tablets are gaining share.

SOURCE: UKOM, comScore Device Essentials, July 2013

24.5% from

Non-PCs

9.0% from

Non-PCs Feb 2012 July 2013

23% Multi-platform users consume 23%

more content than PC-only users

86% of 25-34s no longer rely on

PC internet access exclusively


New devices = new digital time

AVERAGE PC MINS /

USER AVERAGE PC MINS /

USER

AVERAGE TOTAL

DIGITAL POPULATION

MINS / USER

July 2013 July 2012


UK internet use – minute by minute

SOURCE: UKOM, comScore July 2013

2. METHODOLOGY

Background

• Census of major UK media owners

• Digital Adspend – includes online and mobile

• Official Advertising Association figures since 1997

• Information collected each half year

• Data shown by

Category (display, search & classified)

Format (banners, pre-roll / post-roll)

Advertiser sector (consumer goods, finance)

Reported and estimated revenue

Reported Revenue

• Survey includes revenues submitted

by 100+ partipants plus additional

online recruitment sites reported by

WARC

• The figures are drawn up on the

basis of site declaration and have not

been verified

• Google revenues included in total

figures are based on published

financials

Estimated Revenue

• Study includes estimation of Facebook,

Spotify, Millennial, Apple, LinkedIn,

eBay, Weather Channel and Mojiva

revenues by the IAB / PwC Advisory

Board

• Except for above, reported figures have

not been adjusted for organisations that

did not participate in the survey

95% of H1 2013

total Adspend

5% of H1 2013

total Adspend

IAB / PwC Advisory Board

Adjustments and like-for-like growth reporting

Adjustments

• Figures are adjusted for double-counting, based on information provided by survey

participants

• Google display revenues and Google mobile revenues (search and display) are

also estimated by the PwC Advisory Board. This is not incremental spend as already

included in Google total revenues – what we estimate is how this revenue splits

between different formats and platforms.

• Total advertising revenue is reported on a gross basis

Like for like growth reporting

• This study reports like for like growth figures not only for total spend but also for

categories (display, search, classifieds)

• Only companies which submitted in both H1 2012 and H1 2013 have been included in

the like for like growth calculations

• 26 companies’ figures are excluded from the like for like comparisons for both online

and mobile because they did not report in both H1 2012 and H1 2013.

Digital Adspend

Digital includes online, mobile and tablet advertising:

Online • Traditional online advertising viewed on a desktop PC or laptop, accessed via the

internet connection

• Only media spend reported to ensure fair comparison to other media including

• Display advertising

• Search

• Classified

• Other (e.g. Lead Generation, Email, Audio)

Mobile

Tablet

• Advertising that has been specifically tailored and served on a mobile device, accessed

via 3G or wifi


• Display advertising (including SMS/MMS)

• Classified

• Search

• Advertising that has been specifically tailored and served on a tablet device, accessed

via 3G or wifi


• Display advertising

H1 2013 Research participants

247 Real Media, 4th Screen, 7th Chamber, Absolute Radio, AD2One, Adconion,

Addvantage Media, Adfonic, Admaxim, Adpepper, Affili.net, Affiliate Window, AN

Media, AOL, Archant, Bauer, Be On, Blis Mobile, BMJ Publishing, BSkyB, CBS,

Channel 4, Commission Junction, Conde Nast, Crimtan, Cscreens, Dennis

Interactive, Digivibe, Disney, eBuzzing, EE, ESPN, Expedia, Exponential, Fiksu,

Flurry, Fox Networks, Freemax Media, FT, FuturePublishing, Guardian, Global

Radio, Gumtree, Haymarket, Hearst, Hibu, The Institution of Engineering and

Technology, IGN, Immediate Media, Incisive Media, The Independent, Inskin,

Intela, IPC, Interactive Prospect Targeting, Inmobi, ITV, Jobsite, Johnston Press,

Linkshare, Madvertise, Magnetise, Maximiles, Microsoft, Linking Mobile, Mobsta,

MTV/Beviacom, Net Communities Ltd, News International, OMG, Performance

Horizon, Perform Group, Quidco, Racing Post, Reed, Reuters, Rightmove,

R.O.Eye, Savoo, Shortlist, Specific Media, Strikead, The Student Room,

Supersonic, Three, Telegraph, TradeDoubler, Trader Media Group, Trinity Mirror,

Unanimis, Unruly Media, Value Click, Vevo, Vibrant Media, Virgin Media,

Webgains, WeRInteractive, Weve, w00t!, Yahoo, Yoc, Yume, Zoopla and online

recruitment sites through WARC

• Digital advertising reaches £2.606 billion in H1

2012

• Up 12.6% on a Like for Like basis

→ Display up 10.6% on a Like for Like basis - £601 million

→ Classified up 7.2% on a Like for Like basis - £428 million

→ Search up 15.9% on a Like for Like basis - £1,532 million

This time last year… (H1 2012)

3. UK ADSPEND

HEADLINE RESULTS

SOURCE: IAB / PwC Digital Adspend H1 2013


4. THE DIGITAL

MEDIA MIX

Which formats go where?

Format Category

Banners / Embedded* Display

Sponsorships* Display

Interruptive formats Display

Email display advertising Display

Tenancies* Display

Pre roll / Post roll video* Display

Social Video Display

Video other Display

Tablet advertising Display

Dynamic in-game advertising Display

Display other* Display

Format Category

Paid for search* Search

Recruitment classified Classified

Consumer classified* Classified

B2B classified Classified

Solus email Other

Audio advertising Other

Lead generation Other

Search affiliate Other

Mobile SMS/MMS* Other

* Includes mobile

The digital media mix % share of revenues H1 2013

NB: Other includes Lead Generation, Search Affiliate, Solus Email, Mobile SMS/MMS and Audio


Category H1 2012 Share

Search 59%

Display 23%

Classified 17%

All categories show a

like for like increase for H1 2013


Search nears £2 billion for half year


Recovering economy boosts classifeds


Banners & Embedded formats continue to

dominate display (followed by video)


* See www.iabuk.net/OPM for more details

http://www.iabuk.net/OPM

Social media display up dramatically

year on year


0

50000000

100000000

150000000

200000000

250000000

300000000

H1 2009 H1 2010 H1 2011 H1 2012 H1 2013

£50m

£0m

£100m

£300m

£250m

£200m

£150m

Social Media Advertising

Video returns to near 100% growth

NB: Social video and other video included for the first time in H1 2011


Online Performance Marketing

is 70% of ‘Other’


* See www.iabuk.net/OPM for more details

http://www.iabuk.net/OPM

5. INDUSTRY

CATEGORIES

Top 20 online display advertisers

SOURCE: Nielsen Media Research Jan – Dec 2012

Consumer goods extends its lead

SOURCE: IAB / PwC Digital Adspend H1 2013 based on 43% of total digital display revenues for H1

6. MOBILE

59 Submissions up from 47 in H1 2012


Strong like for like growth H1 2012 to H1 2013


The mobile media mix % share of revenues H1 2013

Category H1 2012 Share

Search 71%

Display 27%

Classified 0%

SMS & Other 2%


Mobile like for like growth


Mobile display breakdown


Mobile display absolute growth


H1 2013 mobile display in app vs browser

*Note: Based on a sample of 40 participants and 2 estimated companies, accounting together for c.60% of total standard

display revenue SOURCE: IAB / PwC Digital Adspend H1 2013

Social embedded on mobile


Mobile revenue models

Digital - based on 34% of total revenue; Mobile - based on 6.5% of total revenue only


H1 2013 industry sector mobile display market

shares

*Note: Based on participants who submitted breakdown of the total Entertainment & Media spend into above sub-categories,

together accounting for c 100% of the Entertainment & the Media category spend SOURCE: IAB / PwC Digital Adspend H1 2013

Change in industry sector mobile display

market shares H1 2012 to H1 2013

Based on 26% of total mobile display revenues


1%

3%

1%

4%

10%

7%

12%

11%

13%

23%

14%

1%

2%

2%

4%

7%

8%

8%

9%

9%

23%

27%

Leisure Equipment

Business & Industrial

Government, Social, Political Organisations

Travel & Transport

Motors

Technology

Finance

Telecomms

Retail

Entertainment & The Media

Consumer Goods

H1 2013

H1 2012

Mobile is now 14% of digital

0.8% 1.1% 2.0%

4.2%

9.7%

14.1%

2008 2009 2010 2011 2012 H1 2013

15% of total search

20% of total display

0.4% of total classifieds


H1 2013

7. TABLET

27 Tablet submissions up from 8 in H1 2012

Tablet display Adspend

*Note: This figure relates to tablet

specific advertising only (i.e. not

including internet advertising

displayed on a tablet by default).

It is based on revenues reported

by companies participating in the

online and mobile surveys who

were able to report this figure

separately, and can thus

underestimate the overall size of

the tablet dedicated advertising

spend

£10.5m*

H1 2012 £2.4m SOURCE: IAB / PwC Digital Adspend H1 2013

7. ADDITIONAL DATA

Brand advertising online is 15% of total

SOURCE: IAB estimate based on IAB / PwC Digital Adspend H1 2013

H1 2013 showed a shift in revenue models

Estimate only – based on 33% of measured revenue


8. LOOKING AHEAD AND

SUMMARY

GroupM forecasts for 2013 & 2014

Group M forecast 2013 2014

Advertising Market +3.3% +3.5%

Online +11.6% +10.6%

Display +10% +11%

Search +14% +11%

Source: This Year Next Year Summer 2013 (GroupM)

Summary for H1 2013

• Digital Adspend grows to £3.041 billion in H1 2013

• Up 17.5% on a like for like basis

• Display up 23.0% on a like for like basis - £737.9 million

• Classified up 6.6% on a like for like basis - £452.7 million

• Search up 18.9% on a like for like basis - £1,807.5 million

• Video, Social and Mobile continue to power display

• Consumer Goods and Finance are the top spending display

sectors, Entertainment and the Media now third

• Mobile spend soars by 127% to reach £429.2m


Big thank you

and all contributing media owners

[email protected]

0207 050 6969

mailto:[email protected]

Disclaimer

The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online Adspend figures

collected by the IAB from its members in H1 2013 and to deliver to the IAB the topline figures collated from

this review; PwC has not verified the information which it received from the IAB, and provides no opinion or

other form of assurance with respect to such information.

The publication has been prepared for general guidance on matters of interest only, and does not constitute

professional advice. You should not act upon the information contained in this publication without obtaining

specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or

completeness of the information contained in this publication, and , to the extent permitted by law, neither the

Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s contributors/subcontractors accept or assume

any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to

act, in reliance on the information contained in this publication or for any decision based on it.

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IAB / PwC UK Digital Adspend Study H1 2013 · UK GDP - Second quarter of continuous growth...

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