ADEX 2010 Internet advertising spending in europe (5th edition)

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Adex 2010

Internet advertising spending in

Europe (5th edition)

Key findings

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Adex 2010: key findings

Agenda

• Introduction and methodology

• Top-line figures

• Key trends

Speakers

• Catherine Borrel, IAB Europe

• Vincent Létang & Daniel Knapp, IHS Screen Digest

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Methodology

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Comparing “apples to apples”

RATECARD

Campaigns x

Ratecard

GROSS

Revenue Billed

NET

Revenue Billed

No Agency commissions

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Key challenges to ensure comparability

• Fair Gross value

• Category representation

• Display

• Search

• Classifieds & Directories

• Other

• Exchange rate adjustments at a constant rate

• Introduction of mobile display and mobile search

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Our coverage now includes 25 countries

• Austria

• Belgium

• Bulgaria

• Czech Republic

• Croatia

• Denmark

• Finland

• France

• Germany

• Greece

• Hungary

• Ireland

• Italy

• Netherlands

• Norway

• Poland

• Russia

• Romania

• Slovenia

• Slovakia

• Spain

• Sweden

• Switzerland

• Turkey

• UK

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Topline Figures

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• At constant country sample (25 countries of 2009 and 2010)

• At constant exchange rate

10

12

14

16

18

20

2009 2010

Total online advertising (€bn)

Overall growth: 15.3%

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Key facts and figures

• A €17.7bn market

• Internet advertising back to double-digit growth – Re-accelerating to +15.3% in 2010

– 2009: +4.5%, 2008: +20%

• Internet now contributes 18% to all-media adspend

• Online Display showing the strongest growth: + 21.3%

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Europe continues to chase the US

0

5

10

15

20

25

2009 2010

Total online advertising (€bn)

Europe US

Constant exchange rate: average 2010: 1 EUR = 1.3279 USD

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Display drivers

• New formats/platforms: video, social, mobile

• Innovation in targeting, audience measurement and banner formats

• General renaissance of branding campaigns and display media

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Key Trends

(segments, markets)

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Segments: display beats search growth in 2010…

21,3%

16,1%

7,4%

15,3%

-5%

0%

5%

10%

15%

20%

25%

Display Search Classifieds &directories

Grand total

2009 2010

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…but search remains the larger segment

€5,8bn

€8,0bn

€3,9bn

0

1

2

3

4

5

6

7

8

9

Display Search Classifieds & directories

2009 2010

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…however, display increased its share to 33%

30 33

46 45

23 21

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010

Segment market shares (%)

Display Search Classifieds/Directories Other

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Markets: The top 6 make 74% of total adspend

€ 435 € 521 € 565 € 687 € 814 € 1 004 € 1 007

€ 1 883

€ 3 630

€ 4 770

€ 0

€ 1 000

€ 2 000

€ 3 000

€ 4 000

€ 5 000

€ 6 000

Denmark Norway Sweden Russia Spain Italy Netherlands France Germany UK

Total online adspend in €m

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Comparing Markets (1): CEE is catching up

0%

5%

10%

15%

20%

25%

30%

35%

40%

Total online advertising growth 2009 – 2010 (%)

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Comparing Markets (2): Display surges in East & West

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Online display advertising growth 2009 – 2010 (%)

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Mobile display enters the mainstream

11,4%

3,5% 3,1% 2,8% 2,8%

0,7%

0%

2%

4%

6%

8%

10%

12%

Finland Italy Spain Norway UK Hungary

Mobile display adspend in proportion of total display (%)

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Market: Growth and maturity

*Calculated using WARC & IHS Screen Digest data

Austria

Belgium

Bulgaria

Croatia

Czech Republic

Denmark Finland

France

Germany

Greece

Hungary

Ireland

Italy

Netherlands

Norway

Poland

Romania

Russia

Spain

Slovakia

Slovenia

Sweden

Switzerland

Turkey

UK

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0% 5% 10% 15% 20% 25% 30% 35%

Ye

ar-

on

-yea

r g

row

th 2

00

9-2

010

Online advertising market share

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Panel discussion

• Vincent Létang, IHS Screen Digest

• Tim Elkington, IAB UK

• Andrey Sebrant, Yandex

• Björn Kaspring, OVK (IAB partner, Germany)

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Thank you

Questions?