Propel Executive BreakfastPredictions for 2012

Guy Phillipson, CEOInternet Advertising Bureau

12th January 2011www.iabuk.net

MARKET BACKGROUND & TRENDS

*based on H1 IAB/PwC ad spend figures and IAB H2 forecast

2001- £166m

1% share

2011 - £4.6bn*

27% share

From last to first in 10 years

Increase in users in 2011

Source: UKOM June 2010 and Dec 2011

38.4m 40m

“My Entertainment Anywhere”

40%

60%

Time Spent Online

My Entertainment Anywhere (Social, video & games)All Other Online Activity (Search, news, shopping, email etc)

Source: UKOM June 2011

H1 2011 vs. H1 2010

Source: PwC / Internet Advertising Bureau / WARC

Source: PwC / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.

Online showing strongest growthYear on year growth for H1 2011

Online’s market share for H1 2011 27%% share of revenues for January to

June 2011

Source: PwC / Internet Advertising Bureau / The Advertising Association / WARC

PRESS CUTTINGS

Share of spend by Consumer Goods advertisers is now 2nd place

Source: PwC / Internet Advertising Bureau: IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser, recruitment and misc figures and covers 58% of online display revenues in H1 2011.

Source: PwC / Internet Advertising BureauNB: Video includes pre/mid/post-roll, social video and other video. Social Video and other video included for the first

time in H1 2011

Video grows 100% year on year

Social media display up dramatically year on year

60%+

Source: IAB / PwC mobile display ad spend survey 2010

The display landscape (1995)

Advertiser/Agency

Publisher

BUY SIDE

SELL SIDE

The display landscape today!

Advertiser/Agency

Publisher

DSP

ATDs Ad Exchange

Content Verification

Data suppliers

Data aggregators

Data optimisers

Data exchanges

Ad Network

Creative Optimiser

Yield Optimise

r / Sell Side

Platforms (SSPs)

Expert Witnesses

• Nick Roveta Go Viral/AOL

• Tom Ollerton We are Social

• Carl Uminiski Somo

• Louisa Wong Amnet Group

Questions?

2012 Video Predictions

Nick Roveta

What goviral do

Your videos Our audience Guaranteed engagement

Branded Video content +37,000 publishing partners Cost per view (CPV)

Video metrics won’t be standardizedBecause the major players don’t need to speak the same language

Engagement

Interaction

Performance

View

Ad Selector will replace pre-roll in 2013(so start testing now)

Video and Social will begin to Augment

30% of Video Ads will be in Social Games

420Million Monthly Active

Facebook Users are Social Gaming

210Minutes are spent

Social Gaming each month

75%Of Facebook Audience

play Social Games

$3bnIndustry in 2012

Sources : Morgan Stanley, emarketer, Facebook, Flurry

Mobile video ads will still disappoint…

#1Mobile App Category

by downloads is Social Gaming

47%Of all Mobile App

Consumption is Social Gaming

(Except in mobile gaming)Sources : Morgan Stanley, emarketer, Facebook, Flurry

Pre Roll will continue to dominate(Video budgets in 2012)

90%In Stream and Video banners

10%Other

Source: AccuStream Research, Q4 2011

Video Ad Networks will be essential

Source: AccuStream Research, Q4 2011

But MUST evolve model to survive

Expect some network consolidation

Source: AccuStream Research, Q4 2011

But no big buy outs

Small tech/talent acquisitions

Thanks

32

Presented by: Presented on:

Somo Ltd - Copyright & Confidential

5 Predictions for mobile in 2012

Carl Uminski 12th January

1. Serious retail adoption

24%

2. Rapid adoption of tablets

~5M = 46% iOS Mobile Browsing

£

3. Augmentation of print media

4. Synchronous use of TV

5. Mobile Ad spend will explode (..again)

10%

1%

time spent on mobile

Ad spend

Thank you

@somoagency@uminski

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Real Time Bidding/Trading Desks – A New Growth Area/Opportunity for the Market?

Louisa Wong, General Manager EMEA

The Commercial Opportunity

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Advertiser Perspective: Advantages of Real Time Bidding

Source: According to Econsultancy's 2011 Online Advertisers Survey Report

It is early days, but real time-bidding (RTB) is going to be as big an initiative in Europe as it is in the US, where we are seeing triple-digit increases in our ROI,” predicts Daphne Sacco, Director of Internet Marketing at eBay International.

Advertisers leading the way…

BSkyB has also been an early adopter of RTB in display advertising. In July 2010, it accounted for around 2% of Sky’s display adspend. By January 2011, this had grown to 18%. Matthew Turner, Head of Online Sales and marketing at Sky, hopes this will reach 50% by 2013.

Source: Marketing Week article – “Why RTB is a game-changer for digital ads”, September 2011

1. Consolidation through Acquisition

2. Re-engineering Business Models

3. Trading at Scale

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END