IAB/PWC Mobile Adspend Study 06/06/22 iabuk.net/contact
Oct 28, 2014
7 April 2023iabuk.net/contact
IAB/PWC Mobile Adspend Study
Agenda
•Context: What happened in 2011?•Methodology•IAB/PWC Mobile Adspend Data 2011•What does this mean for the future?
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Context: What happened in 2011?
Some of the drivers in 2011
•Smartphones
•Mobile internet usage
•M-Commerce growth
•Tablet impact
•Search acceleration
•Mobile gets investment
Smartphones dominate connected devices
Source: GfK Retail and Technology UK sales data
Media GatewaysIPTVsTabletsSmartphonesNetbooksLaptopsDesktops
Q406 -Q307 Q407-Q308 Q408-Q309 Q409-Q310
5 Million
10 Million
15 Million
20 Million
25 Million
30Million
Q410-Q311
Smartphones reach a tipping point
64%feature phone Jan 2010
36%smartphone Jan 2010
Source: comScore Mobilens 3 Month average Jan 2010
Smartphones reach a tipping point
47%feature phone Jan 2011
53%smartphone Jan 2011
Source: comScore Mobilens 3 Month average Jan 2011
Smartphones reach a tipping point
47%feature phone Jan 2011
53%smartphone Jan 2011
Source: comScore Mobilens 3 Month average Jan 2011
Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11
Mobile Internet audience grows again
8.5m
24.6m
Source: comScore Mobilens
Mobile internet growth accelerates
2007 2008 2009 2010 2011
0.06m
2.4m
3.5m
4.6m
5.5mAdditional mobile internet users by year
Source: comScore Mobilens
M-Commerce accelerates
% Mobile visits to e-retail sites up from
2.6% to 8.2% 2011 vs 10
Average transaction up from £12.20 to
£17.49 in 2011
24% have bought on their phone
http://www.iabuk.net/research/library/m-commerce-consumer-research-2011
http://www.imrg.org/ImrgWebsite/User/Pages/Press%20Releases-IMRG.aspx?pageID=86&parentPageID=85&isHomePage=false&isDetailData=true&itemID=7051&specificPageType=5&pageTemplate=7
restaurant information
gambling services
real estate listings
electronic payments
general reference
shopping guides
online retail
health information
57%
59%
60%
71%
85%
88%
106%
195%
Traffic growth is fastest in commerceG
row
th i
n m
ob
ile
traf
fic
Source: comScore Mobilens Aug 10- Jan 12
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Tablet growth is surging
Jun Jul Aug Sep Oct Nov Dec Jan2.5
3
3.5
4
4.5
5
Mill
ion
s o
f iP
ad o
wn
ers
72% growth in only 7 months
Source: comScore Mobilens July 2010 - Jan 12
Mobile search starts to be mainstream
Source: Latitude Mobile report 2012 http://www.latitudegroup.com/mobile/2012-latitude-mobile-report-2/
13.4% of paid search
clicks
come
from mobile
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Regulation
Social Media
Sub Groups
Building Brands Online
Social Media Training and IAB auto events
Any Other Business
And revenues start to accelerate
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“We're also seeing a huge positive revenue
impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.”
Larry Page, CEO,Google13/10/11
VCs ramp up mobile spending
2005 2006 2007 2008 2009 2010 2011
$29m
$92m
$161m$115m
$138m $123m
$592m
Source: Rutberg & Company, Global VC Investments in Mobile Marketing & Advertising
2010-2011 growth per media
Press Cinema Out of home
Direct Mail
TV Radio Internet-7.0%
-1.1%
1.1% 1.1% 1.7%
3.8%
10.6%
Source: % change 2010-2011 estimates from The Advertising Association/Warc Expenditure Report
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Methodology
The background…
• The IAB has been working with PwC since 1997 to survey the value of the online advertising market
• These figures have become the industry standard for measuring advertising spend
• We have started measuring mobile adspend in 2008 – this is the fourth year we have surveyed the mobile market
Reported vs estimated survey data
Reported data
• Survey includes revenues submitted by 28 participants
• The figures are drawn up on the basis of site declaration and have not been not verified
Estimated data
• Study includes estimation of search revenues as well as Admob, Millennial, Apple, Mojiva and Google Display Network display revenues, based on views from the IAB/PWC Mobile Adspend Advisory Committee
• Except for above, reported figures have not been adjusted for organisations that did not participate in survey
Adjustments
• Figures are adjusted for double-counting, based on information provided by survey participants
• Total advertising revenue is reported on a gross basis
Like for like growth reporting
• Like-for-like growth rates only include revenues from companies that participated in both 2010 and 2011 studies
• We have also included revenues from new participants where 2010 revenues were reported in addition to 2011
Adjustments and like-for-like
Mobile advertising definition
Reported Mobile data
• Only media spend reported to ensure fair comparison to other media including
– Display advertising
– Search
• Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues like app production
Reported Tablet data
• Advertising that has been specifically served on a tablet device, accessed via 3G or wifi
• Reported separately, not included within the overall Mobile adspend figure
Banner ad
Pre/post roll
Search
In SMS / MMS
TabletNew!
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28 Submitters for 2011
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IAB/PWC Mobile Adspend Data 2011
Source: IAB / PwC mobile ad spend survey 2010
Source: IAB / PwC mobile ad spend survey 2011
Source: IAB / PwC mobile ad spend survey 2011
2011 total mobile ad spend breakdown
Source: IAB / PwC mobile ad spend survey 2011
Most formats seeing growth
Source: IAB / PwC mobile ad spend survey 2011
2011 total mobile display breakdown
Source: IAB / PwC mobile ad spend survey 2011
2011 Rich Media Spend
*Based on a sample of 15 participants and 2 estimated companies, accounting together for c.85% of total standard display revenue
Source: IAB / PwC mobile ad spend survey 2011
In app revenue outweighs on browser
*Based on a sample of 20 participants and 2 estimated companies (from publicly available information), accounting together for c.68% of total display revenueSource: IAB / PwC mobile ad spend survey 2011
Display revenue growth by quarter
Source: IAB / PwC mobile ad spend survey 2011
Industry sector display market shares
• Finance 16%• Consumer Goods 15%• Entertainment & the media 12%• Travel & transport 10%• Retail 10%
Top 5 Online Advertisers H1 2011
Source: IAB / PwC mobile ad spend survey 2011
A focus on entertainment
Source: IAB / PwC mobile ad spend survey 2011
Change in industry sector display market shares 10-11
Source: IAB / PwC mobile ad spend survey 2011
Tablet display adspend
* This figure relates to tablet specific advertising only (ie not including internet advertising displayed on a tablet by default). It is based on revenues reported by companies participating in the online and mobile surveys who were able to report this figure separately, and can thus underestimate the overall size of the table dedicated advertising spendSource: IAB / PwC mobile ad spend survey 2011
Mobile display advertising growth
Source: IAB / PwC mobile ad spend survey 2011
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What does this mean for the future?
Mobile’s growth echoes online 10 years ago
Source: IAB / PWC Adspend,, comScore Mobilens, ,
2011201020092008
8.6m
11m
14.5m
24.6m
Mon
thly
onl
ine/
mob
ile a
udie
nce
(MM
)
Yea
rly a
dspe
nd (
£MM
)
1998 1999 2000 20010
5
10
15
20
25
0
50
100
150
200
250
8.3m
11.8m
15.8m
18.1m
£19.4
£51.0
£153.1
£165.7
£28.6
£37.6
£83.0
£203.2
Monthly mobile audience Monthly online audienceOnline adspendMobile adspend
Mobile is making its impact on the media pie
Cinema, £182m
Mobile, £203m
Radio, £436m
Out of home, £889m
Direct Mail, £1,731m
Press, £4,006m
TV, £4,150m
Internet, £4,531m
Source: 2011 estimates from The Advertising Association/Warc Expenditure Report., IAB/ PWC Mobile Adpsend Study 2011
0
200
400
600
800
1,000
1,200
1,400
2011 2012 2013 2014 2015 2016
£ millions
FirstPartner UK Mobile Ad Spend 2012 to 2016
Messaging
Mobile Content
Search
Display£449m
£727m
£962m
£1088£1185m
copyright FirstPartner 2012www.firstpartner.net
£203m
FirstPartnerFirstPartner
Predictions that mobile cold be worth over £1bn in 2015
1998 1999 2000 2001 2002 2003 20040.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
£19.4m
£51.0m
£153.1m
£165.7m£196.7m
£465.0m
£825.1m
£28.6m
£37.6m
£83.0m
£203.2m
Monthly online audience
Will mobile follow the same path as online adspend in coming years?
2011201020092008 2012? 2013? 2014?
Source: IAB / PWC Adspend,,
Disclaimer
The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the mobile adspend figures collected by the IAB from its members in 2011 and to deliver to the IAB the topline figures collated from this review; PwC has not verified the information which it received from the IAB, and
provides no opinion or other form of assurance with respect to such information.
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, neither the Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s
contributors/subcontractors accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information
contained in this publication or for any decision based on it.