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Romanian online-advertising-revenue-study h1-12-v3

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Valoarea pietei de publicitate online pe s1 2012 monitorizata in studiul semestrial derulat de PWC Romania si IAB Romania.

Valoarea pietei de publicitate online pe s1 2012 monitorizata in studiul semestrial derulat de PWC Romania si IAB Romania.


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  • Over the several years we’ve now been putting together this snapshot, we’re really getting a sense of how the consumer landscape is building and shifting.By re-testing annually, we’re able to pick out the very subtle but important changes that illustrate how the mass experience of consumption is changing.You can see that consumers are feeling an increasing need to be connected all the time, with a focus on content and consumption, rather than pleasure in the device for its own sake.
  • So let’s start with the big picture. Where’s the industry heading at a global level?
  • The segments still dominated by traditional distribution (especially print) will see slower growth than the digital ones. Despite the negative short term economic outlook, we’re looking at 5.6% growth for global advertising in 2012, as one-off events such as the Olympics and political advertising in a number of markets drive spending.
  • Paid search and banner/display will still hold the lion’s share of the market in 2016.These two formats continue to dominate and grow rapidly, but mobile is the fastest growing internet advertising segment at 37% CAGR. The explosion in mobile will affect the entire Internet advertising market.
  • One of the biggest is consumer concerns over privacy.Overcoming these will require a shift of industry mindset away from ‘customer ownership’, towards facilitating a position where the customer is ‘in control’. This echoes the industry journey from: marketing via a ‘push’ strategy (watch what we want when we tell you to)  through ‘pull’ (anytime, anywhere)  to targeting an ongoing one-to-one dialogue with the customer. Giving consumers more control over their personal data will benefit companies, by encouraging consumers to volunteer even more information, and by providing better value for advertisers and higher rewards for media owners. The ultimate aim is a win-win model in which the medium, the advertiser and the consumer all collaborate and benefit. Ultimately, the only person who ‘owns’ the customer – and the customer’s data – is the customer him or herself.
  • Paid for listings is the leading format of the second tier,seconded at some distance by Display affiliate advertising.
  • The technology to deliver the digitally integrated enterprise exists today. But the main hurdle involves finding and leading the talent and the innovative culture needed to make it a reality.According to PwC’s Annual Global CEO Survey, E&M CEOs believe a lack of key skills is negatively impacting the industry’s growth and profitability. Some 35% of E&M CEOs (compared with 24% across all sectors) say talent constraints have caused them to cancel or delay a key strategic initiative in the past year! And what’s more, talent is changing…To find and retain the talent they need, the companies will have to meet the distinctive priorities and demands of the Millennial generation.
  • A PwC survey (2011) of Millennial employees worldwide shows they’re “loyalty”, with only 18% planning to stay in their current roles long-term. But they want more than money, regarding training and development and work/life balance as more important than financial rewards.Fundamentally, the millennial generation have grown up in is digital world  and this has shaped the way they communicate.They have specific preconceptions about how technology should be used in the workplace. Millennials questioned in our study expect the same technologies that empower their personal lives to also drive communication and innovation in the workplace. Engaging and retain these workers will be critical to each business’s bottom line. This means providing workplace technology that includes social networking, instant messaging, video-on-demand, blogs and wikis. These social tools will enable this generation to connect, engage, and collaborate in ways that are natural to them, driving higher productivity across the enterprise.
  • Transcript

    • 1. www.pwc.com/roRomanian OnlineAdvertising RevenueStudy2012 First Six-MonthRuxandra BandilaDirectorMarketing, Communication and Business DevelopmentPwC Romania
    • 2. Where is thebig pictureheading?
    • 3. Where is the big picture heading?Global advertising spending growth 18 16 15.9 6.4% CAGR (2012-2016) for global advertising % CAGR (2012-2016) 14 11.2 12 10 8 6.6 5.3 6 5 3.8 3.4 3.4 4 2 1.6 0.4 0 Source: PwC’s Global Entertainment and Media Outlook 2012-2016PwC Romania
    • 4. BackgroundThe Internet media revenue trackingresearch initiated by IAB in 1996.PwC Romania
    • 5. Representing data from companies that sellmeaningful volumes of online advertising andmedia space The methodology supplied by IAB asks only forIn USA and many revenues related to the costcountries of Europe, the PwC does not audit any of the sold mediaresearch is conducted of the information included space, so revenues excludeindependently by PwC on in this report and provides strategy, creation, productiobehalf of the IAB, on an no opinion or other form of n or other developmentongoing basis. assurance. related costs. The historical data is Only aggregate results Reported figures are not compiled directly from are published and individual adjusted to account for information supplied to company information is other organisations that PwC by the companies held in strict confidence have not participated in the selling advertising on the with PwC. survey. Internet.PwC Romania
    • 6. Romanian Online AdvertisingRevenue StudyIn 2008, PwC was asked by the IABRomania to assess the value of the localonline advertising market.PwC Romania
    • 7. Net revenuesIAB Romania asked to bereported by the participants thenet advertising revenues asamounts billed by thepublishers or by the saleshouses, according to theirinvoices charged to theirclients.All revenues have been reportedin lei and net of VAT. Results released on a half-yearly basis.PwC Romania
    • 8. No. of participants doubled 2007 2008 2009 2010 2011 2012 25 22 22 22 20 18 18 18 14 15 11 11 11 11 10 5In H1-2012, theyrepresent 0 H1-07 H2-07 H1-08 H2-08 H1-09 H2-09 H1-10 H2-10 H1-11 H2-11 H1-12about 1,500 2nd 3rd 4th 5th 6th 7th 8th 9thRomanian 1st edition edition edition edition edition edition edition edition editionwebsites.PwC Romania
    • 9. Detailed Findings – H1-2012Are you ready?PwC Romania
    • 10. Total Revenue in H1-12: 46.6 million lei H1-2012 Monthly Total Revenues 9.75 9.62 10 8.35 7.83 8Revenues (million lei) 6.10 6 4.99 4 2 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 PwC Romania
    • 11. 3.1. Revenue by Type (Ad Format)PwC Romania
    • 12. Where is the big picture heading? Wired & mobile Internet global advertising CAGR (2012-2016) 80,000 70,000 Wired - Search 13.8 60,000 50,000US$ million Wired - Banner/Display 13.8 40,000 Wired - Classified 11.8 30,000 Mobile 20,000 36.5 10,000 Wired - Video 33.9 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: PwC’s Global Entertainment and Media Outlook 2012-2016 PwC Romania
    • 13. H1-2011 Total Revenue by Type (Advertising Format) Embedded formats 22.36 Interruptive formats 7.74 Content sponsorships 6.25 Display affiliate ad 2.19 Paid for listings 2.09 Solus email ad 1.20 Contextual ad 1.13 Pre/post roll video 0.93 0 5 10 15 20 25 Revenues (million lei)PwC Romania
    • 14. These 5 leading types = 87% of Total Revenue Unclassified 4% Other 9% Paid for listings 4% Display Embedded affiliate ad formats 5% 48% Content sponsorships 13% Interruptive formats 17%PwC Romania
    • 15. 3.2. Revenue by IndustryPwC Romania
    • 16. H1-2012 Total Revenue - Largest Revenue Industry(with volumes over the threshold of 1 mil lei) Telecoms 3.91 Motors 3.34 Finance 2.82 Food 2.14 Drink 2.01 Online retail 1.93 Entertainment & the media 1.73 Cosmetics & toiletries 1.54 Travel & transport 1.44 Pharmaceutical 1.22 Govt, social, political org 1.11 0 1 2 3 4 Revenues (million lei)PwC Romania
    • 17. 2007-2012 Semestral ComparisonPwC Romania
    • 18. Where is the big picture heading?Gaining customer insight requires a shift ofmindset Customer ownership Consumer dialogue “Pull” Privacy Creating an “Push” environment in which the customer believes they are in controlPwC Romania
    • 19. Historical Total Revenue Mix - First Half vs. Second Half 100 91.8 86 7% 80 72.4 32% H2Revenues (lei) 65.2 H2 -10% 48.1 60 44.0 70% H2 38.5 42.6 H2 52% 39.7 51% 40 53% H2 26.5 61% H1 H1 H1 20 H1 43.7 46.6 62% 42.1 H1 33.9 H1 16.1 25.5 38% 47% 39% 49% 48% 0 2007 2008 2009 2010 2011 2012 CAGR: 21.2% (2007-2011) PwC Romania
    • 20. Historical Semestral Total Revenue 50 10% -3% 5% -0.6% 48.1 6% 46.6 44.0 43.7 40Revenues (million lei) 42.1 14% 39.7 38.5 56% 28% 33.9 30 -34% 26.5 25.5 20 64% 16.1 10 0 H1-07 H2-07 H1-08 H2-08 H1-09 H2-09 H1-10 H2-10 H1-11 H2-11 H1-12 PwC Romania
    • 21. First Half - Total Revenue Comparison 50 46.6 43.7 42.1 7% 4% 40Revenues (million lei) 33.9 65% -25% 30 110% 25.5 20 16.1 10 0 H1-07 H1-08 H1-09 H1-10 H1-11 H1-12 PwC Romania
    • 22. 4.1. Revenue by Type (Ad Format)PwC Romania
    • 23. Based on cumulated volumes 2007-2012, Embedded formats - strong leadingposition, at significant distance from the nexttwo followers.Interruptive formats are the onlyadvertising type in the first tier reporting anincrease (13%) in H1-12 compared to H2-11, toits new record.Content sponsorships report a slightdecrease (-0.5%) in H1-12 compared to H2-11, to their 2nd largest volume.PwC Romania
    • 24. Where is the big picture heading?The proportion of E&M CEOs who told ustalent constraints have caused them tocancel or delay a key strategicinitiative in the past year: 35% Source: PwC’s Global CEO Survey 2012PwC Romania
    • 25. 4.2. Revenue by IndustryPwC Romania
    • 26. Based on cumulated revenues 2007-2012,Telecoms is the leader industry,seconded at slight distance by Finance.Motors comes next at some distance behind.The second tier industries:FoodDrinkCosmetics & toiletriesEntertainment & the mediaPwC Romania
    • 27. Where is the big picture heading?Millennials challenge: powered by technology 41% • would rather communicate electronically than face- to-face or over the phone 59% • say their employer’s provision of state-of-the art technology is important when considering a job 50% • routinely use their own technology at work 78% • say that access to their favourite technology at work makes them work more efficient 40% • feel that their use of technology isn’t always understood And... • some feel held back by employers’ outdated and rigid work stylesPwC Romania Source: PwC’s survey “Millennials at work: reshaping the workplace”
    • 28. Where is the big picture heading?Eight principles for recruiting and retainingthe best Millennial talent1. Understand this generation. Use metrics and benchmarking to segment the workforce and tounderstand how Millennial employees’ motivations differ.2. Get the deal right. Explain clearly what you are offering a potential employee and also what youexpect in return. Think creatively about reward strategies.3. Help Millennials grow. Understand their personal and professional goals, put them on specialrotational assignments to gain a variety of experiences, and challenge them to exercise creativity andcome up with new ways of streamlining processes.4. Give honest feedback in real time. Millennials want to know much more regularly how they’redoing.5. Set them free. Millennials want flexibility: if you know what you want done and by when, why doesit matter where and how they complete the task? Give them flexible work schedules.6. Encourage learning. Millennials want as much training as possible. Build and measure theeffectiveness of mentoring programs alongside other learning. Let them connect, collaborate, buildtheir networks — and, most of all, innovate.7. Allow faster advancement. Historically, career advancement was built on seniority and time ofservice. Millennials value results more than tenure and expect fast career advancement.8. Expect Millennials to leave. Rates of churn among Millennials will be higher than among othergenerations, and this should be built into your plans.PwC Romania Source: PwC’s survey “Millennials at work: reshaping the workplace”
    • 29. Other usefulinformation,in IAB Romaniareport.© 2012 PwC. All rights reserved. Not for further distribution without thepermission of PwC. “PwC” refers to the network firms ofPricewaterhouseCoopers International Limited (PwCIL), or, as the contextrequires, individual member firms of the PwC network. Each member firms is aseparate legal entity and does not act as agent of PwCIL or any other memberfirm.