RTB growth perspectives in CEE 2010-2016

DATA AUDIENCE TARGETING

RTB growth in Central & Eastern Europe 2011-

2016

in the context of WW & European digital adspend


WWW.CRIMTAN.COM 33 CATHERINE PLACE | LONDON | SW1E 6DY

SHARE OF DIGITAL IN AD SPENDING IS GROWING

Good News


Digital Ad Spending Worldwide as a % of Total

Media Ad Spending, by Region, 2011-2016

2011 2012 2013 2014 2015 20160

5

10

15

20

25

30

35

North AmericaWestern EuropeEastern Europe

www.eMarketer.com


Net revenue of leading display advertising sellers in the U.S.

2012

Facebook Google Yahoo! Microsoft AOL0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2011201220132014

33,4%Google's net digital ad

revenue as percentage of total digital advertising

revenues worldwide 2013

Source: http://www.statista.com


Digital advertising spending in UK $B

2010 2011 2012* 2013* 2014* 2015* 2016*0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

1.52 1.82 2.03 2.24 2.53 2.85 3.13

SearchDisplay**ClassifiedsLead generationE-mail***



Display Share % of Total Advertising Expenditure2010-2014

Czech Republic

Hungary Finland Slovakia Portugal UK Ireland Poland France Russia0

2

4

6

8

10

12

14

16

20102011201220132014

AEGIS GLOBAL ADVERTISING EXPENDITURE REPORT MAY 2013


CEE IS DRIVING DIGITAL GROWTH IN EUROPE

Good News


Digital adspend in CEE is growing at an extremely rapid

rate of +28% in 2013. Digital media is the second most popular medium behind TV with 22% share of spend

http://www.aegismedia.com (Sept.2013)


Digital Ad Spending Growth % 2010-2016

North America Western Europe Eastern Europe0

20

40

60

80

100

120

140

160

15.6 15.5

32.7

21.513.9

38.416.5

10.6

18.9

13.8

11

17.3

12.4

10

15.5

9

7.7

13

6.8

6.6

9

www.eMarketer.com


Online growth WE & CEE 2011/2012

WE CEE-6

-1

4

9

14

19

24

11.5

19.7

9.1

26.6

Nominal GDPAll media (no online)Online All media

Source: Adex Benchmark 2012, EUROPEAN ONLINE ADVERTISING EXPENDITURE


RTB – MAINSTREAM IN WE, BUZZ IN CEEGood News


Programmatic buying is one of the key drivers reshaping our industry. In the US, about 1/3 of all display campaigns are already bought through RTB and algorithmic type of technologies. Europe, driven by its Western European markets, will experience a similar growth in the next three to five years. This change is, literally, a fundamental one. It will progressively span across all digital channels – and beyond, as offline media are increasingly turning digital – to become the standardised way of trading media: after search, display and video, the frontier today is mobile. TV, radio and outdoor will be next in line.

Marc Panic, COO, GroupM Interaction EMEA

Source: Adex Benchmark 2012, EUROPEAN ONLINE ADVERTISING EXPENDITURE


Programmatic share (% of display-related transactions) 2017

US Nedtherlands UK France Germany Spain0

10

20

30

40

50

60

70

80

90

83

60 5956

33 31

Source: MAGNA GLOBAL 2013


RTB % share of Display by Country

2010-2017

2010 2011 2012 2013 2014 2015 2016 20170

5

10

15

20

25

30

35

40

45

7.8

1316

2123

2527

30

0.8

3

6.5

11

13.516

21

26US eMarketerUS ForesterUS IDCUKGermanyFrance

Source: IDC 2011

France indeed lags 3 years to close

market share gap with US


Publisher reticence will change in countries like Mexico and Brazil, but it will take a year or two. After all, publishers in the US and Europe warmed up slowly to RTB, and are only beginning to offer their more premium impressions into exchanges now.

November 19, 2013.

Source: http://www.adexchanger.com


RTB digital display ad spending CEE vs France $M

2012 2013 2014 2015 20160.00

50.00

100.00

150.00

200.00

250.00

300.00

7.00

26.90

67.30

140.30

258.60

66.70

106.40

151.20

197.00

249.60

CEEFrance


Spending volume gap is

closing


RTB-based Display Ad Spending CEE, $M

2010 2011 2012 2013 2014 2015 2016 20170

20

40

60

80

100

120

140

RussiaRest of CEE

Source: IDC 2011


IN CEE WE ARE TALKING ABOUT DIFFERENT SCALE

Bad News,

…but we are used to it.


Online advertising spending in Europe $B

2010-2016

2010 2011 2012* 2013* 2014* 2015* 2016*0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

2.253.60 4.68 5.73 6.62 7.48 8.15

Eastern EuropeVestern Europe

Source: IDC 2011


Digital Ad Spending per Internet User $ 2011-2016

2011 2012 2013 2014 2015 20160

50

100

150

200

250

North AmericaWestern EuropeEastern Europe

www.eMarketer.com


Digital adspend CEE by country 2008-2012

Source: Do You CEE? The overview of the Central and Eastern Europe internet market in 2011

Poland Czech Republic Hungary Slovakia Slovenia Bulgaria Croatia Romania Serbia0

100

200

300

400

500

600

20082009201020112012

Growth pace in CEE is defined by

market size


CEE online spending per capita € / online adspend €M

2011

Czech republic

Poland Slovenia Hungary Slovakia Baltics (EE,LV,LT

)

Bulgaria Croatia Ukraine Romania 0

5

10

15

20

25

30

35

40

45

5046

2624 23

17

8.8 8.7 8

3 3

Source: Do You CEE? The overview of the Central and Eastern Europe internet market in 2011


Advertising Expenditure Baltic Trend €M 2000-2012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

50

100

150

200

250

300

350

400

450

-50

-40

-30

-20

-10

0

10

20

30

Source: TNS Emor


Digital Advertising Expenditure $M

2010 2011 2012 2013 20140

5

10

15

20

25

EstoniaLatviaLithuania



Digital Advertising Expenditure Year on Year % Growth

2010-2014

Estonia % Latvia % Lithuania %

-5

0

5

10

15

20

25

30



Smaller countries start to catch on to display advertising value. Some countries with limited online populations didn’t experience early growth in display advertising, but that’s changed. Portugal, Greece, and Ireland will have the fastest compound annual growth rate of their display budgets, all more than 16% from 2011 to 2016.

Source: Digital Media Buying Forecast, 2012-2017, Forrester


Display share of Digital adspend

2010 2011 2012 2013 20140.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Portugal

Poland

Slovakia

Czech RepublicFinland

Hungary

Russia

FranceIreland

UK



Growth of real GDP 2013

Greece

Slovenia

Portugal

Croatia

Ireland

Bulgaria

Hungary

Slovakia

Czech Republic

Estonia

Poland

Romania

Lithuania

Latvia

-5 -4 -3 -2 -1 0 1 2 3 4 5

If those guys get mention by Forrester we have some future too

Source: Eurostat


Digital Share % of Total Advertising Expenditures

2010-2014

2010 2011 2012 2013 20140.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

UK

IrelandCzech Republic

HungaryRussiaSlovakiaFranceFinlandLatviaEstonia

PolandLithuaniaRomaniaPortugal



Latvia: Digital media share to increase over the next three yearsLithuania: Online will become the second largest mediaEstonia: Local main portals have reached their potential visitor numbers and are looking to create new advertising sales models

Source: AEGIS GLOBAL ADVERTISING EXPENDITURE REPORT MAY 2013


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RTB growth perspectives in CEE 2010-2016

Marketing

Transcript of RTB growth perspectives in CEE 2010-2016