AdEx Benchmark 2015 Interact Presentation 11th May 2016 ... · AdEx Benchmark 2015 Interact...
Transcript of AdEx Benchmark 2015 Interact Presentation 11th May 2016 ... · AdEx Benchmark 2015 Interact...
AdEx Benchmark 2015 Interact Presentation
11th May 2016
Daniel Knapp, IHS
Eleni 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 countries 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
*Have not submitted in time for Interact, but will be included in the final report
Big picture and context
The value of online advertising in 2015
€36.2bn
Acceleration in European GDP growth in
2015 boosts the online ad market
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
200
4-Q
1
200
4-Q
2
200
4-Q
3
200
4-Q
4
200
5-Q
1
200
5-Q
2
200
5-Q
3
200
5-Q
4
200
6-Q
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200
6-Q
2
200
6-Q
3
200
6-Q
4
200
7-Q
1
200
7-Q
2
200
7-Q
3
200
7-Q
4
200
8-Q
1
200
8-Q
2
200
8-Q
3
200
8-Q
4
200
9-Q
1
200
9-Q
2
200
9-Q
3
200
9-Q
4
201
0-Q
1
201
0-Q
2
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0-Q
3
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0-Q
4
201
1-Q
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201
1-Q
2
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1-Q
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1-Q
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2-Q
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201
2-Q
2
201
2-Q
3
201
2-Q
4
201
3-Q
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201
3-Q
2
201
3-Q
3
201
3-Q
4
201
4-Q
1
201
4-Q
2
201
4-Q
3
201
4-Q
4
201
5-Q
1
201
5-Q
2
201
5-Q
3
201
5-Q
4
201
6-Q
1
Eurozone France Italy Germany Spain
GDP growth in Eurozone (%)
Source: IHS © 2016 IHS
€30bn net addition to the online ad market in
10 years…
6.69.2
14.5 15.818.8
21.924.4
28.632.1
36.2
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010 2011 2012 2013 2015 2015
Total online advertising spend (€bn)
Source: IAB Europe for 2011-2015; 2006-2011 retropolated based on IHS growth rates
CAGR (2006-2015): +20.5%
€30bn
…in an otherwise flat media advertising
market
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Digital Traditional
Ad spend by category in Europe in 2015 (€bn)
Source: IAB Europe for online and IHS for all other media © 2016 IHS
Double-digit growth throughout excluding
blip in 2009
39.0%
58.6%
8.9%
18.6% 16.5%11.5% 11.9% 11.6% 13.1%
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Online advertising year-on-year growth (%)
Source: IAB Europe and IHS
Online lifts a declining media advertising
market in 2015
1.0%
-28.2%
-3.9%
12.9%15.9%
13.1%
4.8%
-19.5%
1.1%
-35%-30%-25%-20%-15%-10%-5%0%5%
10%15%20%
Western Europe CEE Total Europe
Total excluding online Online Total
2015: advertising year-on-year growth (%)
Source: IAB Europe for online and IHS for all other media
Online overtakes TV to become the largest
advertising medium in Europe
0.7
5.2
7.5
25.5
33.3
36.2
0 5 10 15 20 25 30 35 40
Cinema
Radio
OOH
TV
Online
2015 2014
Ad spend by category in Europe in 2014 and 2015 (€bn)
Source: IAB Europe for online and IHS for all other media
Markets
Top three markets still account for the lion’s
share of the European online advertising
market
60.4%
70.5%
78.4%86.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Top 3 Top 5 Top 7 Top 10
2012 2013 2014 2015
Share of European online ad revenue by market (%)
Source: IAB Europe and IHS
Top 10 online ad markets at a glance
824
829
1,234
1,310
1,541
1,585
2,085
4,227
5,794
11,826
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Switzerland
Denmark
Spain
Sweden
Russia
Netherlands
Italy
France
Germany
UK
2015 2014
Top 10: total by country in 2014 and 2015 (€m)
Source: IAB Europe and IHS
Strong growth across Europe in 2015…2
9.0
%
22
.3%
21
.8%
21
.6%
20
.4%
20
.0%
19
.7%
18
.7%
18
.2%
18
.0%
16
.9%
15
.3%
14
.2%
13
.7%
13
.3%
13
.1%
12
.8%
11
.2%
10
.4%
9.7
%
8.4
%
8.0
%
7.6
%
7.5
%
6.8
%
5.6
%
0%
5%
10%
15%
20%
25%
30%
35%
Ire
land
Bulg
aria
Pola
nd
Slo
ven
ia
Slo
vakia
Sw
ede
n
Tu
rkey
Sw
itze
rla
nd
Cro
atia
Spa
in
UK
Norw
ay
Russia
Hung
ary
De
nm
ark
Euro
pe
Austr
ia
Serb
ia
Italy
Belg
ium
Neth
erla
nds
Fin
land
Fra
nce
Germ
any
Bela
rus
Czech R
ep
ub
lic
Online advertising year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
…at all levels of market maturity and market size
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
FinlandFranceGermany
Hungary
Ireland
ItalyNetherlands
Norway
Poland
Russia
Serbia
Slovenia
Spain
Austria
Belarus
SwedenSwitzerlandTurkey
UK
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 20 40 60 80 100 120 140 160 180 200
Western Europe: a snapshot
38.0%
15.7%
45.9%
0.4%
Display Classifieds & Directories Paid-for-search Other
Western Europe: share of formats in 2015
Source: IAB Europe and IHS
2014 (€bn) 2015 (€bn) Like-for-like
growth (%)
Share of Total
(%)
Display 10.5 12.3 17.7% 38.0%
of which video 1.5 2.1 37.3% 16.8%*
of which mobile 2.1 3.4 60.0% 10.9%*
Classifieds &
Directories
4.8 5.1 4.8% 15.7%
Paid-for-search 13.3 14.9 11.9% 45.9%
of which mobile 2.1 3.3 55.4% 12.0%*
Total 28.7 32.5 12.9% 100.0%
CEE: a snapshot
40.8%
5.4%
53.8%
0.0%
Display Classifieds & Directories Paid-for-search Other
CEE: share of formats in 2015
Source: IAB Europe and IHS
2014
(€bn)
2015 (€bn) Like-for-like
growth (%)
Share of
Total (%)
Display 1.3 1.5 14.2% 40.8%
of which video 0.2 0.2 25.4% 16.2%*
of which mobile 0.1 0.2 70.1% 11.0%*
Classifieds &
Directories
0.2 0.2 3.3% 5.4%
Paid-for-search 1.7 2.0 17.2% 53.8%
of which mobile 0.03 0.5 208.6% 27.6%*
Total 3.2 3.7 15.1% 100.0%
• Programmatic and automation
• Proliferation of e- and m-commerce
• Rise of online video consumption
• Growth in premium video inventory – attracting
TV budgets
• Improvement in ad quality
• Shift to a mobile-first advertiser mentality
• Social media advertising
• The emergence of native advertising
• Ad blocking
• Viewability and ad fraud
• Misuse of data
• Plateau of desktop advertising – adapting
desktop ads to mobile
• High production costs
• Structural barriers
• Macroeconomic environment and adverse
political conditions
Drivers and hurdles in 2015 as reported by local IABs
Formats
Display continues to drive online advertising growth
14.9%
3.6%
13.0%11.9%
15.2%
5.8%
10.8%11.6%
17.4%
4.9%
12.6% 13.1%
0%2%4%6%8%
10%12%14%16%18%20%
Display Classifieds & Directories Paid-for-search Total
2013 2014 2015
Year-on-year growth (%)
Source: IAB Europe and IHS
Display outpaces other formats to further
increase its share
47.5% 48.2% 43.8%32.2% 31.0% 32.7% 32.4% 33.8% 36.7% 38.3%
18.3% 14.9% 18.9%
19.8% 20.7% 19.6% 18.5% 16.8% 15.6% 14.6%
34.1% 36.6% 36.6%47.3% 48.0% 47.1% 48.8% 49.2% 46.7% 46.7%
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Display Classifieds & Directories Paid-for-search Other
Format shares of online (%)
Source: IAB Europe and IHS
Mobile drives online ad market growth in Europe in
2015
4.9%
12.6%
13.1%
17.4%
36.0%
57.4%
60.4%
0% 10% 20% 30% 40% 50% 60% 70%
Classifieds & Directories
Paid-for-search
Total
Display
Video
Mobile Search
Mobile Display
Year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Half of European display markets grow above
20%, three above 30%
43
.5%
38
.1%
32
.5%
25
.0%
24
.5%
23
.3%
22
.6%
22
.6%
22
.6%
22
.3%
21
.9%
21
.5%
17
.4%
16
.1%
15
.8%
14
.9%
14
.3%
11
.1%
10
.8%
9.7
%
9.6
%
9.6
%
7.7
%
6.2
%
-2.1
%
-19
.6%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Slo
ve
nia
Ire
lan
d
Po
land
Cro
atia
UK
Spain
Bu
lgaria
Tu
rke
y
Norw
ay
Slo
va
kia
Be
lgiu
m
Sw
itze
rla
nd
Eu
rop
e
Ita
ly
Fra
nce
Sw
ed
en
Au
str
ia
Fin
lan
d
Hu
ng
ary
De
nm
ark
Se
rbia
Ge
rma
ny
Czech
Re
pu
blic
Ne
the
rla
nd
s
Ru
ssia
Bela
rus
Display year-on-year growth (%)
Source: IAB Europe and IHS
12 of the 25 IABs
Video is an increasingly important part of display3
2.1
%
28
.3%
25
.1%
20
.0%
19
.8%
18
.1%
18
.0%
18
.0%
16
.8%
16
.7%
16
.0%
15
.9%
15
.3%
15
.1%
14
.7%
14
.4%
12
.8%
10
.1%
8.7
%
8.5
%
8.4
%
8.4
%
8.1
%
5.5
%
0%
5%
10%
15%
20%
25%
30%
35%
Bulg
aria
Russia
Sw
itze
rla
nd
Italy
Sw
ede
n
Ire
land
Belg
ium
UK
Neth
erla
nds
Euro
pe
Fra
nce
Spa
in
Pola
nd
Germ
any
Cro
atia
Austr
ia
Tu
rkey
Fin
land
Denm
ark
Hung
ary
Czech R
ep
ub
lic
Norw
ay
Slo
ven
ia
Bela
rus
Video share of Display in 2015 (%)
Source: IAB Europe and IHS
Mobile accounts for a quarter of all
European display ad spend, approaching
50% in most advanced markets4
3.1
%
37
.5%
36
.8%
33
.0%
29
.5%
27
.5%
26
.1%
25
.4%
20
.9%
20
.6%
19
.6%
10
.9%
9.6
%
8.5
%
8.5
%
8.0
%
7.9
%
7.3
%
5.1
%
4.4
%
2.9
%
2.6
%
0%5%
10%15%20%25%30%35%40%45%50%
UK
Ire
land
Norw
ay
Italy
Neth
erla
nds
Fin
land
Sw
ede
n
Euro
pe
Fra
nce
Pola
nd
Hung
ary
Germ
any
Russia
Cze
ch R
ep
ub
lic
Denm
ark
Serb
ia
Austr
ia
Spa
in
Cro
atia
Tu
rkey
Bela
rus
Bulg
aria
2012 2013 2014 2015
Mobile share of Display (%)
Source: IAB Europe and IHS
Mobile outperformed desktop display ad
spend in all but two countries in 201538.1
%
32.5
%
25.0
%
24.5
%
23.3
%
22.6
%
22.6
%
22.6
%
16.1
%
15.8
%
14.9
%
14.3
%
11.1
%
10.8
%
9.7
%
9.6
%
9.6
%
7.7
%
6.2
%
-2.1
%
-19.6
%
12.6
%
12.4
%
25.3
%
7.9
%
23.1
%
22.3
%
21.2
%
0.1
%
3.7
%
7.7
%
9.1
%
13.2
%
2.4
%
0.2
% 7.3
%
7.1
%
6.0
%
1.5
%
-11.5
%
4.3
%
-20.7
%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Ire
land
Pola
nd
Cro
atia
UK
Spa
in
Bulg
aria
Tu
rkey
Norw
ay
Italy
Fra
nce
Sw
ede
n
Austr
ia
Fin
land
Hung
ary
Denm
ark
Serb
ia
Germ
any
Cze
ch R
ep
ub
lic
Neth
erla
nds
Ru
ssia
Bela
rus
Display Display excluding mobile
Display advertising year-on-year growth in 2015 (%)
Source: IAB Europe and IHS © 2016 IHS
Fewer C&D markets experienced decline in
2015, but the rate of growth has slowed
down in Europe7
7.8
%
66
.0%
60
.5%
32
.3%
16
.1%
15
.0%
13
.0%
12
.0%
11
.6%
9.9
%
9.2
%
5.8
%
5.2
%
4.9
%
3.2
%
2.1
%
1.9
%
0.3
%
0.3
%
-1.2
%
-1.6
%
-3.4
%
-7.8
%
-30
.7%
-40%
-20%
0%
20%
40%
60%
80%
100%
Be
laru
s
Bulg
aria
Slo
ve
nia
Se
rbia
Hu
ng
ary
Cro
atia
Au
str
ia
Po
land
Ge
rma
ny
Sw
itze
rla
nd
Ne
the
rla
nd
s
De
nm
ark
UK
Eu
rop
e
Slo
va
kia
Fra
nce
Tu
rke
y
Ire
lan
d
Fin
lan
d
Ita
ly
Sw
ed
en
No
rwa
y
Be
lgiu
m
Czech
Re
pu
blic
Classifieds & Directories year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Paid-for-search maintains double-digit
growth3
5.0
%
30
.0%
28
.1%
27
.6%
25
.8%
25
.7%
20
.0%
19
.9%
19
.5%
18
.2%
16
.0%
15
.3%
13
.7%
12
.6%
12
.5%
10
.8%
10
.5%
10
.0%
8.8
%
6.3
%
6.0
%
5.0
%
4.6
%
4.0
%
3.4
%
0%5%
10%15%20%25%30%35%40%
Sw
ed
en
Cro
atia
Ire
lan
d
Sw
itze
rla
nd
Slo
va
kia
No
rwa
y
Bu
lgaria
De
nm
ark
Ru
ssia
Tu
rke
y
Hungary
UK
Spain
Eu
rop
e
Po
land
Au
str
ia
Ne
the
rla
nd
s
Be
laru
s
Czech
…
Fin
lan
d
Se
rbia
Germ
any
Ita
ly
Fra
nce
Be
lgiu
m
Paid-for-search year-on-year growth in 2015 (%)
Source: IAB Europe and IHS
Variance across Europe in mobile share of
search highlights national differences in
search behaviour and monetisation5
0.6
%
36
.5%
30
.9%
30
.0%
25
.1%
23
.3%
22
.9%
22
.3%
22
.1%
21
.5%
20
.5%
18
.7%
16
.5%
5.6
%
0%10%20%30%40%50%60%70%80%90%
100%
Ire
lan
d
Au
str
ia
Ru
ssia
UK
Fra
nce
Se
rbia
Eu
rop
e
Sw
ed
en
Ita
ly
Hu
ng
ary
Czech
Republic
Ge
rma
ny
Po
land
Spain
Mobile share of paid-for-search ad spend in 2015 (%)
Source: IAB Europe and IHS
Outlook for 2016
• Favourable economic forecasts
• Large-scale sporting events:
• Euro 2016
• Rio Olympics
• Growth of video, facilitating the move of TV
brand budgets online
• New native ad formats
• Tough comparatives
• Plateau of paid-for-search
• Complexity of devices, platforms, behaviours
• No universal digital currency
• Duplication & fragmentation of ad tech
infrastructure
Drivers
Hurdles
7.8%
5.1% 4.9%
2.7%
0.5%
-4.4%-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Online Cinema TV Radio OOH Print
Media ad spend growth in 2016 (%)
Source: IHS © 2016 IHS
The data and charts shown in this
report cannot be used without the
expressed permission of IAB Europe
and IHS
Contact:
Daniel Knapp, [email protected], @_dknapp
Eleni Marouli, [email protected],
@EMarouli_Ad
Connect with us:@IABEurope IAB Europe
www.iabeurope.eu