IAB report on online ad-spend Affiliates results 2011
Jan 27, 2015
IAB report on online ad-spendAffiliates results 2011
2 IAB report on online ad-spend - DRAFT © 2012 Deloitte The Netherlands
IAB Online Ad Spend Study
2011 Results
© 2012 Deloitte The Netherlands4 IAB report on online ad-spend - DRAFT
Online Advertising Market
© 2012 Deloitte The Netherlands5 IAB report on online ad-spend - DRAFT
Total spend on affiliate marketing in The Netherlands is €117m
Spend on affiliate marketing (€m)
Note: Division of revenue by publisher model based on data from an estimated 59% (€68.6m) of the total marketSource: Jochem Vroom Affiliateblog/Imbull BV; Survey respondents; Deloitte analysis
Coupon codes
Advertising networks
Social Media
Publisher model
46%
20%
Search (SEO/SEA)
13%
8%
7%3%
3%
Comparison sites
Topic publishers
Cashback and loyalty
Affiliate revenue by publisher model
117
© 2012 Deloitte The Netherlands6 IAB report on online ad-spend - DRAFT
More than half of affiliates’ display advertising revenues come from traditional embedded formats
Display advertising breakdown by format*
Textlinks (incl. AdSense)
Embedded formats
Display formats
56%
44%
*n=7 representing €68.6m Note: Embedded formats are for example traditional banners and skyscrapersSource: Survey respondents, Deloitte analysis
© 2012 Deloitte The Netherlands7 IAB report on online ad-spend - DRAFT
For affiliate marketing CPS model is the default revenue model
*n=4 representing €39.7m**n=6 representing €62.6mNote: In-app only includes revenues from survey respondents and excludes revenues from players such as Google and AppleSource: Survey respondents, Emerce.nl, Deloitte analysis
Affiliate advertising revenue per payment model**
2%
CPC
2%
Fixed Fee
3%Other
15%
CPL
78%
CPS
© 2012 Deloitte The Netherlands8 IAB report on online ad-spend - DRAFT
Display revenue per medium (website, mobile, e-mail)
© 2012 Deloitte The Netherlands9 IAB report on online ad-spend - DRAFT
Online retail and Financial services advertisers dominate affiliates’ revenue share, Consumer goods and automotive advertisers are underrepresented
Industries by revenue share affiliates*
0%
Hardware & electronicsFree time
0%
0%Public sector
Personal care
ICT Services
Retail
1%
Consumer goods 1%
Energy 3%
Fashion 6%
Travel 13%
Telecom 18%
Financial services 26%
Online retail 27%
0%
0%
Automotive 0%
2011
*n=4 representing €40.3m** includes free time, personal care, automotive, public sector, ICT services, retailNote: Excluding classifieds, directories & listings, search and industry category other; All respondents includes affiliates and publishersSource: Survey respondents, Deloitte analysis
Industries by revenue share all respondents
2011
Energy 1%
ICT Services
3%Public sector
2%
Automotive
2%
Retail
2%
Personal care 3%
Free time
Hardware &electronics
4%
Consumer goods
2%
7%
Fashion
14%
Travel 7%
Telecom 10%
Financial services
17%
Online retail 9%
Outlook
© 2012 Deloitte The Netherlands11
The Dutch economy is expected to experience slow growth over the next two years
IAB report on online ad-spend - DRAFT
Dutch GDP projections (€b)
576567
560551
-15%
-12%
-9%
-6%
-3%
0%
3%
6%
550
625
650
525
500
475
450
425
4002013F2012F201120102009
542
600
575
1.4%
Note: Real GDP based on constant pricesSource: IMF, Deloitte analysis
• The economy seems to keep an easy pace as the Dutch GDP is expected to grow at a steady 1.4% for the coming two years
• Following the sharp recovery in 2010 in the advertising market, future growth is expected to be more in line with GDP
Comments
GDP
Total advertising growth rate YoY
GDP Growth rate YoY
© 2012 Deloitte The Netherlands12
TV and online are expected to grow the most in both absolute and relative terms
Estimated advertising market (€m)
219230 233 235
165158150149
6555
2,000
1,000
0
1.8%
2012F
4,169
1,175
1,045
1,091
452
5,000
4,000
3,000
2011E
4,095
1,068
1,088
1,059
484
2010
4,028
954
1,177
965
547
2009
3,827
815
1,184
885
571
Source: Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau; Company annual reports, Deloitte analysis
Internet
Newspapers
TV
Magazines
Radio
Outdoor
Cinema
• Expected growth for the total advertising market in The Netherlands in 2012 is 1.8%
• The online advertising market is expected to become the largest market in 2012
• Newspapers and magazines are expected to continue their steady decline
• Radio is expected to remain stable through 2012
• Outdoor is expected to grow steadily
Comments
IAB report on online ad-spend - DRAFT
© 2012 Deloitte The Netherlands13
40
25
15
20
So
A (
%) 30
50
35
45
40
25 30 35
10
45
5
50
0
Time spend (%)
20151050
Magazine
Newspapers
Radio
Internet TV
As consumers spend more time online, advertisers are expected to respond similarly to rebalance the value of the difference media types
IAB report on online ad-spend - DRAFT
Time spend vs SoA* (2011)
* SoA = Share of AdvertisingNote: Share of Advertising based on collected 2011 data; Time spend based on most recent available findings from SPOTSource: Trends tijdsbesteding 2010 SPOT, Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau, Deloitte analysis
= Indicative direction and speed
© 2012 Deloitte The Netherlands14
Affiliate respondents predict a 14.9% market growth in 2012 weighted by respondent revenues as compared to 7.7% for the market at large
IAB report on online ad-spend - DRAFT
Affiliate survey respondents growth expectations
45%
20%20%
10%10%10%
50%
30%
10%
Respondents*
14.9%
40%
20%
0%
*n=6 representing €60.7MNote: Growth expectation calculated by weighting responses with company revenue; overall market includes affiliates and publishersSource: Survey respondents; Deloitte analysis
18%20%
20%
45%
50%
10%
10%10%
10%10%
10%10%
10%10%
10%10%
10%10%
12%12%
15%15%
15%
2%4%
5%5%
5%7%
8%8%
10%
0%Respondents
20%
50%
40%
30%
7.7%
20%
Overall survey respondents growth expectations
Appendix
© 2012 Deloitte The Netherlands16
Methodology
IAB report on online ad-spend - DRAFT
Online advertising market
• 8 affiliate companies reported their data based on the questionnaire
• The data gathered comprises 59% of the total market by revenue
• The figures are drawn up on the basis of site declaration and have not been verified
© 2012 Deloitte The Netherlands17
Definitions
IAB report on online ad-spend - DRAFT
Categories Payment models
• Display
- Embedded formats (banners, buttons, skyscrapers etc)
- Interruptive formats (rich media, over the page, page take-over etc)
- Tekstlinks (incl. AdSense)
- Video (pre-/mid-/ postroll)
- Other uncategorized display advertising
• Online classifieds, directories & listings
- B2B
- B2C
- C2C
• Fixed Fee: Payment model based on a fixed fee
• CPM: Cost per Mille = Payment model where the advertiser pays per thousand viewers
• CPC: Cost per Click = Payment model based on the number of clicks on an advertisement
• CPL: Cost per Lead = Payment model that is based on the number of leads generated. A lead is an online conversion where the consumer shares its contact details and indicates to be interested
• CPS: Cost per Sale = Payment model based on the number of sales generated
© 2012 Deloitte The Netherlands18
Roel van RijsewijkDeloitte Online Business Innovation
• Tel: +31 (0)6 52615087• Email: [email protected]
Contact
IAB report on online ad-spend - DRAFT
For questions concerning this research feel free to contact:
Gagandeep SethiDeloitte Consulting | Strategy
• Tel: +31 (0)6 13127167• Email: [email protected]
Internet Advertising BureauIAB Nederland
• Tel: +31 (0)20 531 51 19• Email: [email protected]
Roel van Rijsewijk is a Director with the Risk Services practice from Deloitte with more than 10 years of experience in risk consulting for companies in the Technology, Media & Telecommunications (TMT) industry. Roel leads one of Deloitte’s main innovation projects on ethics and trust in a digital world and is co-founder of Deloitte’s Online Business Innovation group
Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB commissioned research and assisting IAB members with their research projects. Also responsible for shaping the IAB knowledge base so that it meets members' needs moving forward
Gagandeep Sethi is a Manager in the Corporate Strategy practice of Deloitte Consulting Netherlands with more than 10 years of experience within the Technology, Media & Telecommunications (TMT) industry.
© 2012 Deloitte The Netherlands19
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IAB report on online ad-spend - DRAFT