UK Online Adspend Study Results for January to June 2006 Prepared by PricewaterhouseCoopers for the...
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Transcript of UK Online Adspend Study Results for January to June 2006 Prepared by PricewaterhouseCoopers for the...
UK Online Adspend Study Results for January to June 2006
Prepared by PricewaterhouseCoopers for the IAB
Background
• Census of all major UK online media owners
• Official Advertising Association figures since 1997
• Information collected each half year
• Analysis available by
• Format
• Industry category
Agenda
• Study methodology• Market background and trends• UK online adspend – headline results• Online in context• The digital media mix• Industry categories• In summary• Questions & answers
Methodology
A brief history…• The IAB has been working with PwC since 1997 to survey the value of
the online advertising market.• PwC have run projects in Europe and North America to assess the size
of the interactive media markets.• These figures have become the industry standard for measuring
advertising spend and in the UK are now used by the Advertising Association.
• 90 companies have participated in the survey representing thousands of websites.
• Reported figures are not adjusted to account for other organisations that have not participated.
• Total advertising revenue is reported on a gross basis.
• The figures are drawn up on the basis of site declaration. They cover thousands of UK websites, but by no means all.
Research participants
Acxiom Ad2-one Adept Scientific Adlink AdRevenue Advertising.com Adviva AOL AskJeeves Associated Northcliffe Digital Autotrader BBC BlueLithium
BMJ Bolt Blue BSkyB Channel 4 Chrysalis Radio Classic FM CNet Condenast Confetti Dennis Interactive Dixons DGM eCircle Economist EDR
EMAP eType Faversham House Group Financial Times Find.co.uk Findaproperty Fish4 Five Friends Reunited GCap Media Google Guardian Habbo Handbag Haymarket Independent IPC Media iPoints IPT ITN ITV
iVillage Jetix Jobs.ac.uk Jobsite Loot Lycos Manchester Online Media Brokers Memedia Miva Moneyextra Monster MSN National Magazines Net
Communities Netrecruit News International Orange Real Media Reed Business Information Reuters Rightmove Scotland Online Sift SRH
Telegraph Tesco Tiscali TMN Tradedoubler UK Net Guides Unanimis Upmystreet Utarget Valueclick Virgin Radio WME Workthing Yahoo! Yell
…Plus further recruitment sites, courtesy of WARC
Representing thousands of UK websites
Market background and trends
3.64.6
6.27.2
8.710.7
12.714.2
17.519.1
20.821.7
23.1 23.624.5 24.9
26.828.1
29.3 29.8
Jun1996
Dec1996
Jun1997
Dec1997
Jun1998
Dec1998
Jun1999
Dec1999
Jun2000
Dec2000
Jun2001
Dec2001
Jun2002
Dec2002
Jun2003
Dec2003
Jun2004
Dec2004
Jun2005
Dec2005
Nearly 30m people now onlineUsed in last 12 months
Source: NOP World, 2005
Millions of people 63%
10m households with Broadband in Britain
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Per
cent
age
of h
ome
user
s
Source: BMRB Internet Monitor, Q4 2005 Base: All who have used the Internet at home on a computer in the last month
Broadband access at home
Average 23 hours a week online
Online sales hit 30bn
Online helps High Street
Tesco’s £1bn online sales
P&G increases digital spend?
UK Online Adspend Study Results for the first half of 2006
Prepared by PricewaterhouseCoopers for the IAB
£917.2mmarket in the first
half of 2006
(up from £630.5m a year ago)
40.3% increaseOn a like for like basis
Including new contributors £286.7m was added to the market value, giving a 45.5% increase
First Half 2006 vs. first half 2005
Online advertising almost £½ billion a quarter
47.4 42.8 36.6 38.9 36.6 45.2 51.163.8
88.0105.2
119.7
152.1171.8
224.1
303.5327.0
350.5
461.2
385.5
456.0
174.6
254.6
0
50
100
150
200
250
300
350
400
450
500
Q101
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
£ m
illio
ns
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
‘01 ‘03‘02 ‘04 ‘05 ‘06
Online in context…
Breaking market trends in the UK ad industry
22.7%
20.9%
17.4%
13.1%
5.1% 3.4% 0.8%
5.9%
TVPress - DisplayPress - ClassifiedDirect MailInternetDirectoriesOutdoorRadioCinema
Source: PricewaterhouseCoopers / Internet Advertising Bureau / The Advertising Association / Radio Advertising Bureau / WARC
Internet 10.5%
Online Breaks 10% barrier January to June 2006
Total advertisingmarket
£8.7bn
-2.7%
2.0%
11.9%
40.3%
-8.3%
-0.5%-1.1%-1.3%
PressClassified
Radio TV PressDisplay
Direct Mail Outdoor Cinema Internet
Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC
Online drives the whole marketYear on year growth for the first half 2006
Total advertising market growth = 1.4%
Mar
ket
Sha
reOnline’s share growth accelerates
Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC
2.5%3.3%
4.2%
5.5%
7.3%
8.4%
10.5%
H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006
0
200
400
600
800
1000
1200
Q198
Q298
Q398
Q498
Q199
Q299
Q399
Q499
Q100
Q200
Q300
Q400
Q101
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Radio
Outdoor
Internet
Direct Mail
Press -Classified
Press - Display
Television
Online’s ascendancy continues£
mill
ions
Source: PricewaterhouseCoopers / Internet Advertising Bureau / Advertising Association / Radio Advertising Bureau / WARCN.B. WARC Recruitment data included from 2003
Radio
Outdoor
Internet
Press - Display
Television
Press - Classified
Direct Mail
Online in contextFirst half 2006
73.4
297.6403.3 443.8 471.1 515.5
917.2 993.41,139.8
1,822.61,978.6
1,473.01,518.2
Cinem
a
Radio
Consu
mer
Mag
s
Outdo
or
Busine
ss M
ags
Direct
ories
Inte
rnet
Nation
al N
ewsp
aper
s
Direct
Regio
nal N
ewsp
aper
s
Press
- Clas
sifie
d
Press
- Disp
lay
TV
£m
Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau
Online advertising market for the year to June 2006…
£1653.1m
July 2005-June 2006
Summary – First half 2006
• Online advertising driving growth of the entire media market
• Internet advertising approaches £1bn in the first half of 2006 (£917.2m)
• Online achieved a share of 10.5%, up 3.2 points from the first half of 2005 (7.3%)
• The market grew 40.3% year on year from a high base
• Online now closing the gap on national press
The digital media mix
The developing mix of ad products
The digital media mix% share of revenues for January to June 2006
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARCIAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
23.5%
57.9%
0.9%
17.7%
DisplayClassifiedsPaid for searchSolus Email
Half year total£917.2m
The digital media mixAll format groups have experienced actual growth
162.1131.4
337.0
215.9
162.2
531.3
Display Classifieds Paid for search
H1 2005 H1 2006
£ m
illio
ns
+33%
+23%
+58%
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARCIAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
15.1%
11.2%
6.5%
57.9%
0.7%
1.0%
0.4%
0.7%
5.5%
0.9%
Banners / Embedded
SponsorshipsInterruptive formats
Tenancies
Other displayDisplay ads on email
Solus email
Recruitment classifieds
Further classifiedsPaid for search listings
The digital media mix% share of revenues for January to June 2006
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARCIAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
£138.9m
£9.6m
£6.8m
£50.7m
£5.9m
£4.0m
£7.9m
£102.8m
£59.3m
£531.3m
The digital media mixYear on year comparison
£ m
illio
ns
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
3.2
6.6
7.5
11.9
4.0
5.9
6.8
7.9
9.6
50.7
59.3
102.8
138.9
531.3
27.5
37.0
94.4
105.4
337.0
Display ads on email
Other display
Interruptive formats
Solus Email
Sponsorships
Tenancies
Further classifieds
Recruitment classifieds
Banners / Embedded
Paid for search listings
H1 2006H1 2005
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Strong growth of Search continues
181.2
248.5
337.0
431.4
531.3
H1 2004 H2 2004 H1 2005 H2 2005 H1 2006
£m
Source: Internet Advertising Bureau / PricewaterhouseCoopers
Search is the gateway to brands
• People use search as a stepping stone to find the advertiser’s brand site
• 88% of those on broadband use a search engine every week
• More than 8 out of 10 users rely on a search engine after partially remembering a website address
• Search is now bigger than outdoor mediaSource: Ipsos Insight conducted for Isobar and Yahoo! Search, May 2006
Yahoo! Search Marketing, ISOBAR, UDA research 2005
Growth in further classifieds
0
20
40
60
80
100
120
140
160
180
H1 2004 H2 2004 H1 2005 H2 2005 H1 2006
Recruiment classifieds Further classifieds
£m
Source: Internet Advertising Bureau / PricewaterhouseCoopers
Display: breadth of formats
0
50
100
150
200
250
H1 2004 H2 2004 H1 2005 H2 2005 H1 2005
Banners / Embedded Sponsorships Interruptive formats
Display ads on email Tenancies Other display
£m
Source: Internet Advertising Bureau / PricewaterhouseCoopers
Formats summaryJanuary to June 2006
• With revenues of £531.3m, search maintained its dominant position over the six month period
• Year on year, display was up 33.2% to £138.9m while search increased by 57.7% and classifieds grew by 23.4% to £162.2m
• The growth of recruitment classifieds is slowing, up 9% to £102.8m. Other classifieds continue to enjoy strong growth, up 60.4% to £59.3m for the half year
Industry categories
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Recruitment sector leads the market in the first half of 2006
IAB estimates for industry sector shares are based on samples of categorised net revenue from key IAB members provided by PwC. Data excludes unclassified figures and covers 48% of online revenues in H1 2006.
0.3%
0.5%
1.3%
1.3%
3.0%
4.3%
4.6%
4.7%
8.1%
8.9%
13.8%
14.3%
15.6%
19.5%
Other
Gardening & Agriculture
Govt & other organisations
Business & Industrial
Retail
Property
Consumer goods
Telecoms
Travel & Transport
Entertainment & Media
Automotive
Technology
Finance
Recruitment
Recruitment & Finance continue todominate the onlineadvertising market
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Sector Market Shares
1.0%
1.5%
1.1%
2.8%
11.8%
19.4%
0.3%
0.5%
1.3%
1.3%
3.0%
4.3%
4.6%
4.7%
8.1%
14.3%
15.6%
4.0%
3.6%
1.2%
1.6%
8.0%
19.7%
13.5%
10.8%8.9%
13.8%
19.5%
Other
Gardening & Agriculture
Govt & other organisations
Business & Industrial
Retail
Property
Consumer goods
Telecoms
Travel & Transport
Entertainment & Media
Automotive
Technology
Finance
Recruitment
H1 2006
H1 2005
IAB estimates for industry sector shares are based on samples of categorised net revenue from key IAB members provided by PwC. Data excludes unclassified figures and covers 48% of online revenues in H1 2006.
Industry sectors summaryJanuary to June 2006
• The top 3 categories accounted for almost half of online ad spend (49.4%) and continued to be led by the Recruitment sector
• Growth in the Consumer goods and Retail categories is a positive sign, but there is still a lot of potential
Spotlight on Automotive
10.8%
12.4%
13.8%
H1 2005 H2 2005 H1 2006
• Automotive’s market share shows steady growth
• Online is effectively used as both a branding medium and a direct response driver
• Investment is made across all 3 format categories – search, display and classified
Market S
hare
Renault Clio
Overall Summary
Overall summary
• Online ad spend leaps by 40.3% on a like for like basis in a relatively flat media market.
• £1,653.2m spent across the twelve months ending June 2006.
• Market share breaks the double digit barrier as online reaches 10.5% of advertising revenues in H1 2006.
• Online sustaining healthy growth in face of a depressed advertising market
• Strong growth continues even from a high base
• Search, display and classifieds have all experienced impressive increases
Overall summary
The next milestone
£2 billion• A real possibility by the end of the year • This would make online bigger than
national press
Online closes on national press
0
100
200
300
400
500
600
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06
Internet National Press
£m
Online is half the size of TV
£917m £1,979m
All the companies taking part, representing thousands of websites
and to
Our thanks to…
Paul PilkingtonDirector
Colin MacleodResearch Director
Paul TaylorProduction Editor&
UK Online Adspend Study Results for January to June 2006
Prepared by PricewaterhouseCoopers for the IAB
For more [email protected] 7886 8282