deloitte & IAB Ad spend report H1 2012 Netherlands


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De Nederlandse digitale reclamemarkt behaalde in Q1 van 2012 een netto omzet van 585 miljoen euro. Dat is 14,3% meer ten opzichte van Q1 in 2011. Zo blijkt uit de Online Ad Spend studie (PDF) die Deloitte uitvoerde in opdracht van IAB.

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deloitte & IAB Ad spend report H1 2012 Netherlands

  1. 1. interactiv advertisin bureau IAB report on Online Ad Spend H1 2012September 2012
  2. 2. Introduction andsummaryIAB report on Online Ad Spend H1 2012 2
  3. 3. IntroductionThis is the third year IAB and Deloitte are publishing the online advertising spendreport for The Netherlands. The 2010 and 2011 Full Year reports received positiveresponses from the community and the current edition, which covers H1 2012, hascontinued the trend of wide industry coverage. Joris van Heukelom Roel van Rijsewijk IAB | Chairman Deloitte | Online Business Innovation This edition relies on data supplied by 36 companies. This broad coverage of the “This half year report indicates the “With a growth of 14.3%, the first Dutch market has given us the opportunity to gain a thorough insight into current first trends for digital advertising in half of 2012 has been a good start for market developments. Further, we also conducted validation discussions with a 2012. The positive news is that the the online advertising market despite number of players in the market. growth capacity of digital media is difficult times for advertising in general. still not reached; in comparison with But a possible cause of concern for the other types of media digital advertising Dutch online advertising industry is that maintains having strong growth figures. the growth is for a large part driven However, I think it is disappointing to by search with 22% growth. There is see that mobile and tablet revenues less confidence with the participants don’t take up as expected, especially and their expectations have decreased since the time spent on both devices to a 4.5% growth for 2013. This could increased explosively and the indicate challenges for the Dutch online opportunities for advertising and advertising industry in the near future commercial exploitation are numerous. to maintain its double digit growth.“ During the next months, additional effort should be taken on this topic.” Emile van den Berg IAB | Research & Standards “The increasing share of spend for tablets is a good example of the importance of the ad spend reports. It helps us in mapping our industry and discovering new opportunities for our members.”IAB report on Online Ad Spend H1 2012 3
  4. 4. Our methodology Collection Deloitte collected data from 36 participants covering a representative sample of the market Missing participants’ data estimated based on previous figures, desk research, Completion & enrichment expert opinions, industry databases and mathematical modeling Conversation Initial findings verified with industry experts, media buyers, and select publishers Validation Final findings cross-referenced and validated with respondents Publication All findings presented to the IAB and industry participantsIAB report on Online Ad Spend H1 2012 4
  5. 5. Executive summary The Dutch online advertising market was €585m in H1 2012, a year on year uplift of 14.3% Gagandeep Sethi Deloitte Consulting | Strategy “Online advertising showed great resilience despite a challenging macro- Ad revenues generated by Dutch publishers We see a lower spread in the Power economic environment to end the first through their mobile websites and in-app Ratios of publishers in 2012 compared half with strong double digit growth. advertising on smartphones and tablets is still to 2011 indicating a reduction in Much of this growth was driven by very small; tablets are gaining share differentiation of publisher ad inventories the outstanding growth coming from international search players. Domestic players also performed well, they did so at a more modest pace.” Moving forward, respondents expect Search grew at an outstanding 22% the display advertising market to in the first half of 2012, whereas cool slightly growing at 4.5% in 2013 classifieds and display grew by a still strong but more modest 8% and 7%IAB report on Online Ad Spend H1 2012 5
  6. 6. H1 2012 ResultsIAB report on Online Ad Spend H1 2012 6
  7. 7. Online advertising marketThe Dutch online advertising market was €585m in H1 2012, a year on year uplift of14.3%.Eric Snelleman Revenue by advertising category (€m)GroupM | Head of Digital Trading“At the start of the year the growth ofonline advertising was in line with the €105projections made by the IAB. The last €98few months we are however seeing Searcha slowdown, which can be explained H1 2012by the negative economic outlook €310in the Netherlands. In addition we €255 H1 2011 €585m Displayexperienced that new cookie legislation €512m Classifieds, directoriescombined with the increased data €170 and listingscomplexity in digital advertising (with €159RTB and Ad Exchanges) in general iscreating more cautiousness arounddigital advertising investment.” +14.3%* earch revenues is our estimation of all revenue of Google and its competitors in The Netherlands S Note: H1 2011 Display revenue was restated in the 2011 report, Display revenue includes some double counting from search related revenues, Display includes direct e-mail, Classifieds, directories listings estimated based on a limited number of data points Source: Survey respondents, Annual reports, Deloitte analysisIAB report on Online Ad Spend H1 2012 7
  8. 8. Details display advertisingThe spend on different formats used in display advertising has stayed roughly thesame with traditional embedded formats still the dominant format used. Display advertising breakdown by formatHein AsserMagna Global | Contracting Director“While there has been a lot of talkaround online video, this talk as Other Otheryet hasn’t been accompanied by a 15% 12%significant shift in revenue.” 18% Interruptive Interruptive formats 29% formats 8% 7% H1 2012 H1 2012 2011 Video 9% 10% Display formats Embedded Display formats Embedded Video 62% 61% formats formats 6% 10% Textlinks Textlinks (incl. AdSense) (incl. AdSense) 53% Display Classifieds, Search directories and listingsNote: Embedded formats are for exampletraditional banners and skyscrapersSource: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 8
  9. 9. Display revenue per mediumAdvertising on mobile website and in-app advertising remains small; tablets accountfor 42% of these revenues, which has increased compared to 2011.Display advertising revenue per medium % In-app advertising smartphones vs tablets 3%Marieke van der DonkDeloitte Consulting | Strategy 4%“Publishers have not yet been ableto fully monetize mobile website 42% 36%and in-app advertising; however, thegrowing number of tablet users have Mediums H1 2012 2011claimed a larger share of advertising In-app In-apprevenue and will, as the time spenton these devices increases, drive an 58% 64%increase of mobile website and in-appadvertising revenues.” 93%Note: In-app only includes revenues from Website/browser Smartphonesurvey respondents and excludes revenues fromplayers such as Google and Apple E-mail TabletSource: Survey respondents, Deloitte analysis In-app / Mobile websiteIAB report on Online Ad Spend H1 2012 9
  10. 10. Power ratio display advertisingWe see a lower spread in the Power Ratios of publishers in 2012 compared to 2011indicating a reduction in differentiation of publisher ad inventories.Harry Dekker Power ratio display advertising CommentsUnilever Benelux | Media Director • Share of Advertising is the ratio of“Traditional online advertising is in Low 3 2.7 respondent revenue to the sum ofdanger of losing its shine quickly Average revenue of included respondents SoA / SoVas clutter negatively impacts its High • Share of Visitors is the ratio ofeffectiveness.” respondent unique visitors to the sum of unique visitors of included respondents 1.9 1.8 • The power ratio is calculated by 2 dividing Share of Advertising by Share of Reach 1.4 • In the 2011 report the top performing publisher achieved a 1 power ratio of 12.4 indicating a 0.9 significant ability to differentiate 1.0 0.8 1 0.7 • The first half of 2012 has seen a 0.6 more level playing field as indicated 0.5 0.4 by a smaller difference in the power ratios of the different publishersNote: Unique visitors are according to STIR 0definitions of visitors over 13 years of age, One 1 1 2 1 1 1 2 1 1 1 1publisher’s power ratio omitted because of Number of publishersapparent faults in reported dataSource: STIR 2011, Survey respondents, DeloitteanalysisIAB report on Online Ad Spend H1 2012 10
  11. 11. IndustriesThe top 4 industries; Consumer goods, Financial services, Telecom, and Travel accountfor nearly half of the display market. Industries by revenue share Change in H12012 H1 2012 2011 2011 Change percentage points Consumer goods 18% Consumer goods 17% 1% Financial services 12% Financial services 14% -2% Telecom 9% Telecom 10% -1% Travel 8% Travel 7% 1% Automotive 7% Automotive 7% 0% Retail* 6% Retail* 11% -5% Hardware electronics 6% Hardware electronics 4% 2% ICT Services 5% ICT Services 2% 3% Leisure 3% Leisure 2% 1% Public sector 3% Public sector 3% 0% Fashion 3% Fashion 2% 1% Personal care 2% Personal care 3% -1% Energy 1% Energy 1% 0%* etail and Online retail categories have been R combined into Retail in the 2012 H1 survey Note: Excluding classifieds, directories, listings and search. Source: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 11
  12. 12. Revenue per payment modelThe CPM payment model maintains a leading position as the preferred revenue modelfor display advertising.Display advertising revenue per payment modelH1 2012 2011 56% 12% 51% 19% CPM CPS CPM CPS 13% 6% 9% 7% CPC CPL CPC CPL 12% 1% 12% 2%Fixed Fee Other Fixed Fee OtherSource: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 12
  13. 13. OutlookIAB report on Online Ad Spend H1 2012 13
  14. 14. Revenue growth expectationsRespondents predict a 4.5% market growth in 2013. Survey respondents growth expectations (% market growth per respondent) Low Average High Weighted average growth expectation*Gagandeep SethiDeloitte Consulting | Strategy“Companies expect a weighted growthrate of 4.5% in 2013. This is significantlylower than expectations for previous 2013 expectationsyears reflecting an overhang of theeconomic circumstances on companies’expectations.” 1 4.5% 0% 2% 4% 5% 7% 10% 20% 29% 30% number of respondents -3% 2 2 1 5 1 8 2 1 1 (total of 24)* Growth expectation calculated by weightingresponses with company revenue Source: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 14
  15. 15. Cookie legislationMost respondents predict that market growth will be unaffected by the recentlyintroduced cookie law, both by absolute and weighted responses. Survey respondents cookie law expectations (weighted responses) 7%Annika SponseleeDeloitte Risk Services | Security Privacy 22%“According to the respondents, cookie Impactchallenges are no reason to disbelieve Cookie lawin market growth. The market is justlooking for an adequate response tothe great cookie challenges.” 71% No impact Decreasing advertising revenue Increasing advertising revenueIAB report on Online Ad Spend H1 2012 15
  16. 16. Growth expectations 2013Fixed Fee and CPM are expected to grow; Retail expectations remain high; Mobileand In-app expectations are high considering the performance in the first half of 2012. Weighted % of respondents growth expectations Fixed Fee 43% Retail 42% In-app 48% CPM Financial Mobile 37% 41% website 30% services CPS Website/ 11% Travel 8% browser 22% CPL 6% Automotive 5% CPC 2% Personal care 4% Payment model Industry MediumNote: Percentages based on responsesweighted by respective company revenuesSource: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 16
  17. 17. Display revenue forecastThe Dutch display advertising market is expected to total around€361 million in 2012. Display forecast 2012 (€m)Mendel SenfYD | CEO H1* H1“Changes in consumer behaviour will €159 2011 €170 2012 H2 H2lead to an increase in usage of video €336 €177 €361 €191on new devices like mobile and tablets.We believe that the emergence of newrich media formats will be supported bytechnologies like RTB.” Realized +7% Forecasted* isplay market total for H1 2011 has been D restated in the FY 2011 report Source: Survey respondents, Deloitte analysisIAB report on Online Ad Spend H1 2012 17
  18. 18. AppendixIAB report on Online Ad Spend H1 2012 18
  19. 19. Methodology Online advertising market Classifieds, directories listings estimates • 6 companies reported their data based on the questionnaire. 3 • ue to limited availability of company data we estimate the market size for D classifieds, directories listings based on market data. • he data gathered comprises a representative sample of the Dutch market. T • he figures are drawn up on the basis of site declaration and have not been T Search estimates verified. • ue to limited availability of company data we estimate the market size for D • herever needed we have used tools such as regression analysis to make W search based on market data. estimations regarding issues like total advertising spend. • ogether with the IAB taskforce search we defined the search market and T • ased on the information provided by survey participants, figures have been B estimated the market size. adjusted for double counting. • oogle regulations forbid commenting on our search market estimates. GIAB report on Online Ad Spend H1 2012 19
  20. 20. Definitions Categories Payment models • Display • Fixed Fee: Payment model based on a fixed fee - Embedded formats (banners, buttons, skyscrapers etc) - Interruptive formats (rich media, over the page, page take-over etc) • Cost per Mille (CPM): Payment model where the advertiser pays per thousand - Tekstlinks (incl. AdSense) viewers - Video (pre-/mid-/ postroll) - Other uncategorized display advertising • Cost per Click (CPC): Payment model based on the number of clicks on an advertisement • Online classifieds, directories listings - B2B • Cost per Lead (CPL): Payment model that is based on the number of leads - B2C generated. A lead is an online conversion where the consumer shares its contact - C2C details and indicates to be interested • E-mail marketing (direct e-mail) • Cost per Sale (CPS): Payment model based on the number of sales generatedIAB report on Online Ad Spend H1 2012 20
  21. 21. List of survey participants Name of company Name of company 1 Adfactor 19 NRC Media 2  Adlantic 20 RTL Nederland 3 Admitter Nederland 21 Sanoma Media 4 Affilinet Nederland 22 SBS 5 Bannerconnect 23 Smartclip 6 Be Viacom 24 Ster 7 ClickDistrict 25 Sulake 8 Daisycon 26 Telegraaf Media Groep 9 De Persgroep Advertising 27 Testnet 10 Digimo Media 28 TradeDoubler 11 FD Mediagroep 29 Videostrip 12 Funda Real Estate 30 VNU Media 13 HDC Media 31 WebAds Interactive Advertising 14 IDG 32 Koninklijke Wegener 15 Marktplaats Media 33 YD 16 Massmedia 34 Young Advertising 17 Microsoft 35 Zanox M4N 18 NDC Mediagroep 36 Zoom.inIAB report on Online Ad Spend H1 2012 21
  22. 22. Data sources Company / Organization Website 1 Comscore 2 Google 3 STIR 4 Z’insights www.zinsights.nlIAB report on Online Ad Spend H1 2012 22
  23. 23. Contact details For questions concerning this research feel free to contact: Roel van Rijsewijk Lauren van der Heijden Deloitte Online Business Innovation IAB Nederland Tel: +31 (0)6 52 615 087 Tel: +31 (0)85 401 0802 Email: Email: Roel is a Director with the Risk Services practice from Deloitte with more than Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB 10 years of experience in risk consulting for companies  in the Technology, Media commissioned research and assisting IAB members with their research projects. Telecommunications (TMT) industry. Roel leads one of Deloitte’s main innovation Also responsible for shaping the IAB knowledge base so that it meets members’ projects on ethics and trust in a digital world and is co-founder of Deloitte’s Online needs moving forward. Business Innovation group. Gagandeep Sethi Deloitte Consulting | Strategy Tel: +31 (0)6 13 127 167 Email: 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.IAB report on Online Ad Spend H1 2012 23
  24. 24. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s approximately 195.000 professionals are committed to becoming thestandard of excellence.This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of thispublication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.© 2012 Deloitte The Netherlands
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