TOGETHER FOREVER? ONLINE + TRADITIONAL MEDIA Adex 2010 Internet advertising spending in Europe (5 th edition) Key findings.

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Adex 2010Internet advertising spending in

Europe (5th edition)

Key findings

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Adex 2010: key findingsAgenda• Introduction and methodology• Top-line figures• Key trendsCompiled & presented by• 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

+15.3%

2009 201010

12

14

16

18

20

Total online advertising (€bn)

Overall growth: 15.3%

Source IAB Europe/IHS Screen Digest

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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

2009 20100

5

10

15

20

25Total online advertising (€bn)

Europe USConstant exchange rate: average 2010: 1 EUR = 1.3279 USD

Source IAB Europe/IHS Screen Digest & IAB?PwC

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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…

Display Search Classifieds & directories Grand total

-5%

0%

5%

10%

15%

20%

25%

21.3%

16.1%

7.4%

15.3%

2009 2010

Source IAB Europe/IHS Screen Digest

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…but search remains the larger segment

Display Search Classifieds & directories0

1

2

3

4

5

6

7

8

9

€5,8bn

€8,0bn

€3,9bn

2009 2010

Source IAB Europe/IHS Screen Digest

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…however, display increased its share to 33%

2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

30 33

46 45

23 21

Segment market shares (%)

Display SearchClassifieds/Directories Other

Source IAB Europe/IHS Screen Digest

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Markets: The top 6 make 74% of total adspend

Denmark Norway Sweden Russia Spain Italy Netherlands France Germany UK€ 0

€ 1,000

€ 2,000

€ 3,000

€ 4,000

€ 5,000

€ 6,000

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

€ 1,883

€ 3,630

€ 4,770

Total online adspend in €m

Source IAB Europe/IHS Screen Digest

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Comparing Markets (1): CEE is catching up

Russia

Turke

y

Roman

ia

Sloven

ia

Switzer

land

Greec

e

Bulgar

ia

Czech

Rep

ublic

Spain

Italy

Norway

Hunga

ry

Croat

ia

Finlan

d

Austri

a

Germ

any

Poland

Denm

ark

Nethe

rland

s

Irelan

d

Belgium UK

Sweden

Slovak

ia

Franc

e0%

5%

10%

15%

20%

25%

30%

35%

40%

Total online advertising growth 2009 – 2010 (%)

Source IAB Europe/IHS Screen Digest

TOGETHER FOREVER? ONLINE + TRADITIONAL MEDIA

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

Sloven

ia

Finlan

d

Switzer

land

Irelan

dUK

Roman

iaSpa

in

Russia

Croat

ia

Norway

Nethe

rland

s

Turke

y

Austri

a

Germ

any

Italy

Belgium

Bulgar

ia

Denm

ark

Slovak

ia

Czech

Rep

ublic

Franc

e

Hunga

ry

Sweden

Greec

e

Poland

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%Online display advertising growth 2009 – 2010 (%)

Source IAB Europe/IHS Screen Digest

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Mobile display enters the mainstream

Finland Italy Spain Norway UK Hungary0%

2%

4%

6%

8%

10%

12% 11.4%

3.5%3.1% 2.8% 2.8%

0.7%

Mobile display adspend in proportion of total display (%)

Source IAB Europe/IHS Screen Digest

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Market: Growth and maturity

*Calculated using WARC & IHS Screen Digest data

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

5%

10%

15%

20%

25%

30%

35%

40%

45%

26296338281.5%

33212089789.9%

2354058774.9%

2057821150.7%

18634652392.6%

43547786530.5%24363500000.0%

188301900000.0%

362976135160.5%

8628228856.5%

9560208657.5%

10420000000.0%

100412494000.0%

100747500000.0%

52136986227.9%

36821865021.1%

1727854923.0%

68659245242.4%

81411158800.0%

4105326900.0%

2622069900.0%

56528822377.7%

32682715246.2%

27163985453.4%

477012725431.1%Ye

ar-

on

-ye

ar

gro

wth

20

09

-20

10

Online advertising market share

Source IAB Europe/IHS Screen Digest/WARC