1 - IAB Europe

IAB Europe AdEx Benchmark
2014
Daniel Knapp, IHS
Eleni Marouli, IHS
About the study
A meta analysis of online ad spend in Europe
GROSS
Revenue Billed
NET
Revenue Billed
No Agency commissions
RATECARD
Campaigns x
Ratecard
Submissions from 27 European countries
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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
*New participant from 2014
Big Picture and Context
The value of European online advertising in 2014
€30.7bn
Eurozone
France
Italy
Germany
2015-Q1
2014-Q3
2014-Q1
2013-Q3
2013-Q1
2012-Q3
2012-Q1
2011-Q3
2011-Q1
2010-Q3
2010-Q1
2009-Q3
2009-Q1
2008-Q3
2008-Q1
2007-Q3
2007-Q1
2006-Q3
2006-Q1
2005-Q3
2005-Q1
2004-Q3
2004-Q1
2014: Eurozone macro-recovery provides foundation for ad growth
GDP growth in Eurozone (%)
6
4
2
0
-2
-4
-6
-8
Double-digit online advertising growth in 2014
Total online advertising spend (€bn)
35.0
30.0
11.6% like-for-like
30.7
27.4
25.0
20.0
15.0
10.0
5.0
0.0
2013
2014
Online advertising spend has doubled in the last five years…
Total online advertising spend (€bn)*
35.0
30.7
30.0
27.4
24.4
25.0
21.9
18.8
20.0
14.5
15.0
10.0
15.8
9.2
* Source: IAB Europe
for 2011-2014; 20062011 retropolated
based on IHS growth
rates
6.6
5.0
0.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
…while maintaining double-digit growth for five consecutive years
Online advertising year-on-year growth (%)
20.0%
19.0%
18.0%
16.5%
16.0%
14.0%
12.0%
11.5%
11.9%
11.6%
2012
2013
2014
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2010
2011
Online growth rescued overall European advertising market in 2014
2014: advertising year-on-year growth (%)
20.0%
15.0%
13.8%
11.7%
11.4%
10.0%
5.0%
0.0%
3.0%
1.8%
0.0% WE
CEE
-5.0%
-10.0%
Total Europe
-1.6%
-5.0%
-9.5%
-15.0%
Total excluding online
Online
Total
In Western Europe, online advertising spend per head for the first
time exceeded spend on all other media in 2014
Ad spend per capita in 2014 (€)
70.0
60.0
58.7
59.9
50.0
43.6
40.0
30.0
39.8
22.2
20.0
11.3
10.0
WE
CEE
TV
Print
Online
Total Europe
Other
Strong growth puts size of online ad market nearly on par with TV
Ad spend by category in Europe in 2014 (€bn)
TV
33.5
Online
30.7
Print
26.8
OOH
7.8
Radio
5.2
Cinema
0.7
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Markets
Over half of all European online ad spend comes from three
markets; contribution by top 10 to total market stable
Share of European online ad revenue by market (%)
100%
90%
86.6% 86.4% 86.5%
77.9% 78.2% 78.8%
80%
69.4% 69.9% 70.8%
70%
60%
57.3% 56.9% 58.8%
50%
40%
30%
20%
10%
0%
Top 3
Top 5
2012
Top 7
2013
2014
Top 10
Top 10 European online advertising markets at a glance
Total online ad spend (€m)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2013
2014
20.8%
19.5%
18.7%
17.3%
16.3%
16.0%
16.0%
14.7%
14.3%
13.8%
13.3%
12.7%
12.0%
11.6%
11.4%
11.2%
10.8%
9.5%
9.3%
8.4%
7.8%
7.7%
6.6%
2.3%
33.3%
32.8%
43.1%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Slovenia
Ireland
Belarus
Turkey
Hungary
Bulgaria
Russia
Greece
Austria
Belgium
Slovakia
UK
Switzerland
Sweden
Finland
Italy
Europe
Netherlands
Denmark
Croatia
Serbia
Germany
Norway
Poland
Czech
France
Romania
All European markets recorded positive growth in online
advertising in 2014…
Online ad growth like-for-like in 2014 (%)
…and 20 markets grew double-digit
40%
35%
Belarus
Ireland
30%
25%
Turkey Hungary
20%
Bulgaria
Russia
Belgium
Slovakia
Austria
15% Croatia
Switzerland
Greece
Sweden
Finland
Italy
Netherlands
10%
Germany
Poland Czech Republic
France
5%
0%
-10%
Denmark
Norway
Romania
-5%
UK
20
40
60
80
100
120
140
Growth drivers
Social media
Video
Programmatic transactions and data infrastructures
Improved data literacy on both demand and supply side
Mobile internet penetration increasing across all of Europe
Measurement initiatives in mobile and video taking effect
Growth hurdles
Viewability and fraud
Some cannibalization of desktop budgets by mobile
CPM/CPC inflation
Limited inventory in video
Attribution
Measurement issues remain despite improvements
Formats
Display drove online advertising growth in 2014
Year-on-year growth (%)
18%
16%
15.5%
14.9% 15.2%
14%
13.0%
12%
10%
10.8%
11.5% 11.9% 11.6%
9.1%
8%
6.3%
5.8%
6%
3.6%
4%
2%
0%
Display
Classifieds &
Directories
2012
Paid-for-search
2013
2014
Total
Display grew its share, eating into both Paid-for-search and
Classifieds & Directories
Format shares of online (%)
100%
90%
80%
34.1%
36.6%
36.6%
14.9%
18.9%
70%
60%
50%
18.3%
40%
30%
20%
47.5%
48.2%
43.8%
10%
47.3%
48.0%
47.1%
48.8%
49.2%
48.1%
19.8%
20.7%
19.6%
18.5%
16.8%
15.9%
32.2%
31.0%
32.7%
32.4%
33.8%
35.6%
2009
2010
2011
2012
2013
2014
0%
2006
2007
Display
2008
Classifieds & Directories
Paid-for-search
Other
Display advertising growth year-on-year (%)
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Ireland
35.1%
Slovenia
34.1%
Turkey
29.4%
UK
26.4%
Sweden
23.4%
Austria
23.3%
Belarus
22.5%
Finland
18.6%
Italy
17.4%
Belgium
16.2%
Bulgaria
15.8%
Hungary
15.5%
Europe
15.2%
Norway
14.5%
Denmark
13.4%
France
12.9%
Netherlands
12.1%
Slovakia
11.5%
Switzerland
10.4%
Greece
10.2%
Germany
9.1%
Serbia
8.3%
Poland
7.3%
Czech Republic
4.5%
Romania 1.2%
Croatia -3.1%
Russia -5.0%
Display showed uneven growth with a 40 percentage point range
across markets
Video share of Display (%)
30%
25%
20%
15%
10%
5%
30.6%
26.8%
25.3%
23.3%
22.3%
18.0%
17.7%
17.2%
16.4%
16.1%
15.6%
15.1%
14.6%
13.7%
13.6%
12.7%
11.7%
11.4%
11.2%
8.7%
7.0%
5.8%
5.4%
3.9%
3.0%
35%
Slovenia
Switzerland
Russia
Belgium
Bulgaria
UK
Greece
Sweden
Netherlands
Poland
France
Europe
Ireland
Norway
Germany
Croatia
Turkey
Austria
Italy
Finland
Czech Republic
Hungary
Denmark
Romania
Belarus
Video is now an integral part of online display advertising
0%
62.5%
60.1%
59.0%
57.9%
56.2%
53.7%
48.1%
42.1%
42.1%
40.0%
35.8%
30.4%
30.1%
28.8%
28.2%
27.9%
24.2%
22.2%
17.5%
17.0%
Ireland
Denmark
Sweden
Switzerland
Romania
Norway
Turkey
UK
Russia
Slovenia
Europe
Netherlands
Bulgaria
France
Poland
Germany
Czech Republic
Finland
Italy
Belgium
Belarus
Austria
Hungary
100.0%
115.3%
143.5%
187.5%
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
Greece
Video growth is at least double-digit in all markets
Video growth year-on-year in 2014 (%)
2012
2013
Turkey
Slovenia
Croatia
Serbia
Romania
Bulgaria
Belarus
5.4%
5.4%
6.4%
6.5%
7.8%
9.0%
1.0%
1.3%
1.6%
2.1%
3.4%
5.1%
5%
Czech Republic
2014
Poland
Denmark
Germany
Finland
11.1%
12.9%
14.6%
10.0%
10%
Austria
Hungary
Sweden
France
15.4%
17.7%
15.2%
15%
Russia
Netherlands
Italy
21.7%
17.7%
20%
Europe
Norway
25%
24.5%
30%
Ireland
35%
33.8%
40%
UK
Mobile consolidates its position as key driver of display advertising
Mobile display as a share of total Display (%)
0%
Display
12.1%
Netherlands
1.2%
-3.1%
-5.0%
Croatia
Russia
4.5%
Romania
Czech Republic
7.3%
12.9%
France
Poland
13.4%
Denmark
8.3%
14.5%
Norway
Serbia
15.5%
Hungary
9.1%
15.8%
Bulgaria
Germany
17.4%
Italy
22.5%
Belarus
18.6%
23.3%
Austria
Finland
23.4%
26.4%
Sweden
UK
29.4%
34.1%
Slovenia
Turkey
35.1%
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Ireland
This is more evident…
Display year-on-year growth (%)
-10%
Display
France
Denmark
Norway
Hungary
Bulgaria
Display excluding Mobile
Russia
Croatia
Romania
Czech Republic
Poland
Serbia
Germany
Netherlands
-20%
Italy
Finland
Belarus
Austria
Sweden
UK
Turkey
Slovenia
Ireland
…when we remove Mobile from Display
Display year-on-year growth (%)
40%
30%
20%
10%
0%
Mobile was responsible for 50% of market growth
European
Display with
mobile: +15.2%
European
Display without
mobile: +7.9%
80%
60%
40%
20%
0%
-20%
-40%
-60%
Croatia
65.0%
Belarus
50.0%
Bulgaria
44.7%
Hungary
32.5%
Serbia
20.1%
Slovakia
20.1%
Slovenia
20.0%
Switzerland
12.5%
UK
11.6%
Germany
10.7%
Belgium
10.0%
Netherlands
7.9%
Turkey
6.5%
Europe
5.8%
Denmark
5.5%
Austria
5.3%
France 3.0%
Poland 2.5%
Finland 0.0%
Greece 0.0%
Russia 0.0%
Czech Republic -1.2%
Ireland -3.6%
Norway -6.1%
Sweden -7.2%
Italy -16.6%
Romania -51.6%
Classifieds & Directories struggled in 2014 with 11 countries
experiencing decline
Classifieds & Directories year-on-year growth in 2014
2013
2014
France
4.4%
8.7%
UK
10.1%
Serbia
9.0%
10.5%
Poland
Finland
10.8%
Europe
9.0%
11.9%
Netherlands
Germany
12.2%
Denmark
15.0%
Croatia
12.2%
15.8%
Slovakia
Turkey
15.8%
Czech Republic
13.9%
16.7%
Switzerland
Italy
18.6%
Sweden
14.0%
19.0%
Hungary
Austria
19.5%
Norway
23.1%
25.8%
Bulgaria
Greece
26.9%
29.2%
Russia
Belgium
42.7%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Ireland
Deceleration of Search in mature markets dampens overall growth
Paid-for-search year-on-year growth in 2014 (%)
Notable part of paid-for search is now mobile
Mobile share of Paid-for-search in 2014
45%
40%
40.1%
35%
30%
25%
20%
15%
10%
5%
0%
26.5%
22.2%
19.1% 18.3%
17.4%
15.1% 14.3%
12.5%
6.0%
5.5%
First market signals from IABs confirm outlook that online will
command the highest share of all media ad spend in 2015
Media advertising revenue in Europe
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
TV
Radio
Newpapers
Magazines
OOH
Cinema
Online
Thank you
[email protected]
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