IAB Digital Ad Spend 2014

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The IAB and PwC have released the digital ad spend which Odyssey Mobile were involved in. Topline results are: digital advertising grew by 15.2% on a like for like basis to reach £6.3billion in 2013, with mobile growing 93.3% passing the £1billion mark to reach £1.031billion.

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  • Hi, this is very insightful. do you happen to have one for Asia Pacific?
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  • Great information in this slideshow. Any thoughts on how ad quality is affecting digital spend growth?
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IAB Digital Ad Spend 2014

  1. 1. IAB / PwC UK Digital Adspend Study Full Year 2013
  2. 2. 1. INTRODUCTION
  3. 3. Background • Census of major UK media owners • Digital Adspend – includes online and mobile • Official Advertising Association figures since 1997 • Information collected each half year • Data shown by Category (display, search & classified) Format (banners, pre-roll / post-roll) Advertiser sector (consumer goods, finance)
  4. 4. 2. METHODOLOGY
  5. 5. Reported and estimated revenue Reported Revenue • Survey includes revenues submitted by 100+ participants plus additional online recruitment sites and TV Broadcasters reported by WARC • The figures are drawn up on the basis of site declaration and have not been verified • Google and Twitter revenues included in total figures are based on published financials Estimated Revenue • Study includes estimation of Facebook, Spotify, Millennial, Apple, LinkedIn, Weather Channel and Mojiva revenues by the IAB / PwC Advisory Board • Except for above, reported figures have not been adjusted for organisations that did not participate in the survey 95% of 2013 total Adspend 5% of 2013 total Adspend
  6. 6. IAB / PwC Advisory Board
  7. 7. Adjustments and like-for-like growth reporting Adjustments • Figures are adjusted for double-counting, based on information provided by survey participants • Google display revenues and Google mobile revenues (search and display) are also estimated by the PwC Advisory Board. This is not incremental spend as already included in Google total revenues – what we estimate is how this revenue splits between different formats and platforms. • Total advertising revenue is reported on a gross basis Like for like growth reporting • This study reports like for like growth figures not only for total spend but also for categories (display, search, classifieds) • Only companies which submitted in both Full Year 2012 and Full Year 2013 have been included in the like for like growth calculations • 57 companies’ figures are excluded from the like for like comparisons for both online and mobile because they did not report in both Full Year 2012 and Full Year 2013.
  8. 8. More accurate collection of Online Performance Marketing revenues Agency Commission Net Revenue retained by Affiliate Net Revenue taken by Affiliate but passed back to publisher partner Originallyreported Totalnetrevenuenowreported
  9. 9. Digital Adspend Digital includes online, mobile and tablet advertising: Online • Traditional online advertising viewed on a desktop PC or laptop, accessed via the internet connection • Only media spend reported to ensure fair comparison to other media including • Display advertising • Search • Classified • Other Mobile Tablet • Advertising that has been specifically tailored and served on a mobile device, accessed via 3G or wifi • Only media spend reported to ensure fair comparison to other media including • Display advertising (including SMS/MMS) • Classified • Search • Advertising that has been specifically tailored and served on a tablet device, accessed via 3G or wifi • Only media spend reported to ensure fair comparison to other media including • Display advertising
  10. 10. 2013 Research participants 24 7 Real Media, 4th Screen, 7th Chamber, Absolute Radio, AD2ONE, Adconion, Addvantage Media, Admaxim, Adpepper, Affiliate Window, Affilinet, AOL, Archant, Bauer, Be On, Beviacom (MTV), Blinkbox, Blis Mobile, BMJ Publishing Group, Byyd, C Screens, CBS Interactive, Collective, Commission Junction, Conde Nast, Crimson Tangerine, Deezer, Dennis Interactive, Digivibe, Disney, DMGMedia, Ebuzzing, EE, ESI Media, ESPN, Expedia, Exponential, Fiksu, Flurry, Fox Networks, Freemax Media, FT, Future Publishing, Gamer Network, Google, Guardian, Gumtree, Haymarket, Hearst, Hibu, IGN, Immediate, Incisive Media, Inmobi, Inskin, Intela, Interactive Prospect Targeting, IPC, Jobsite, Johnston Press, Linking Mobile, Madvertise, Magnetise, Maximiles, Microsoft, Mobsta, Net Communities, News UK, Numbate, Odyssey Mobile, OMG, PERFORM, Performance Horizon, Quidco, R.O.Eye, Racing Post, Rakuten Linkshare, Reed Business Information, Reuters, Rightmove, Savoo, Shortlist, Specific Media, Strikead, Supersonic, TalkSport, Tamome, Telegraph, Ten Thousand Hours, The Institution of Engineering and Technology, The Student Room, This is Global, Three, Tradedoubler, Trader Media, Tremor Video, Trinity Mirror, Twitter, Unanimis, Unruly Media, Value Click, Vevo, Vibrant Media, Viewster, Virgin Media, Webgains, WeRinteractive, Weve, w00t!, Yahoo, YOC, Yume, Zoopla and online recruitment sites & TV Broadcasters through WARC
  11. 11. • Digital advertising reaches £5.448 billion in 2012 → Display up to £1,479 million → Classified up to £818 million → Search up to £3,087 million This time last year… (2012)
  12. 12. 3. UK ADSPEND HEADLINE RESULTS
  13. 13. SOURCE: IAB / PwC Digital Adspend Full Year 2013
  14. 14. SOURCE: IAB / PwC Digital Adspend Full Year 2013
  15. 15. Digital advertising spend – last 10 years SOURCE: IAB / PwC Digital Adspend 2004 - 2013 £825 £1,366 £2,016 £2,813 £3,350 £3,541 £4,097 £4,822 £5,448 £6,300 £0 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 £Millions Market Share figures out soon
  16. 16. 4. THE DIGITAL MEDIA MIX
  17. 17. Which formats go where? Format Category Banners / Embedded* Display Sponsorships* Display Interruptive formats Display Email display advertising Display Tenancies* Display Pre roll / Post roll video* Display Social Video Display Video other Display Tablet advertising Display In-game advertising Display Display other* Display Format Category Paid for search* Search Recruitment classified Classified Consumer classified* Classified B2B classified Classified Solus email Other Audio advertising Other Lead generation Other Mobile SMS/MMS* Other * Includes mobile
  18. 18. The digital media mix % share of revenues 2013 SOURCE: IAB / PwC Digital Adspend Full Year 2013 Category 2012 Share Search 57% Display 27% Classified 15%
  19. 19. Display leads the way in 2013 with highest like for like growth SOURCE: IAB / PwC Digital Adspend Full Year 2013
  20. 20. Search nears £3.5 billion in 2013 SOURCE: IAB / PwC Digital Adspend Full Year 2013
  21. 21. Classifieds growth continues in recovering economy SOURCE: IAB / PwC Digital Adspend Full Year 2013
  22. 22. Banners & Embedded formats plus video makes up 92% of digital display SOURCE: IAB / PwC Digital Adspend Full Year 2013
  23. 23. Social media display grows 71% year on year £0 £100 £200 £300 £400 £500 £600 £700 2009 2010 2011 2012 2013 Social Media Advertising £Millions SOURCE: IAB / PwC Digital Adspend Full Year 2013
  24. 24. Video grows by two thirds SOURCE: IAB / PwC Digital Adspend Full Year 2013 / WARC. For 2011 onwards revenues for online video advertising on TV broadcaster websites are taken from WARC / Thinkbox rather than submitted directly to PwC. Adjustments have been made to the originally published 2011 and 2012 figures to reflect this.
  25. 25. Online Performance Marketing revenues collected in a separate study 4,000 advertisers spending £1 billion across12,000 publishersLead generation: 13% Affiliate Marketing: 87% www.iabuk.net/opm
  26. 26. Approximately £300 million of OPM revenue is also submitted to Digital Adspend SOURCE: IAB / PwC Digital Adspend Full Year 2013 & The Value of Online Performance Marketing in the UK 2013 www.iabuk.net/opm
  27. 27. 5. INDUSTRY CATEGORIES
  28. 28. Top 20 online display advertisers 2013 SOURCE: Nielsen Ad Dynamix Jan – Dec 2013
  29. 29. Consumer goods increases lead as biggest display industry sector SOURCE: IAB / PwC Digital Adspend 2013 based on 46% reported display revenue for H1 and H2 2013
  30. 30. 6. MOBILE
  31. 31. 66 Submissions up from 59 in 2012
  32. 32. SOURCE: IAB / PwC Digital Adspend Full Year 2013
  33. 33. Strong like for like growth 2012 to 2013 SOURCE: IAB / PwC Digital Adspend Full Year 2013
  34. 34. The mobile media mix % share of revenues 2013 Category 2012 Share Search 69% Display 29% Classified 0.4% SMS & Other 2% SOURCE: IAB / PwC Digital Adspend Full Year 2013
  35. 35. Display also leads the way in mobile like for like growth SOURCE: IAB / PwC Digital Adspend Full Year 2013
  36. 36. Mobile display dominated by standard formats SOURCE: IAB / PwC Digital Adspend Full Year 2013
  37. 37. Mobile video shows massive growth SOURCE: IAB / PwC Digital Adspend Full Year 2013
  38. 38. 2013 mobile display in app vs browser *Note: Based on a sample of 48 participants and 2 estimated companies, accounting together for c.32% of total standard display revenue SOURCE: IAB / PwC Digital Adspend Full Year 2013
  39. 39. 2013 mobile rich media spend 2012 21% SOURCE: IAB / PwC Digital Adspend Full Year 2013
  40. 40. One third of all social display spend is in mobile SOURCE: IAB / PwC Digital Adspend Full Year 2013
  41. 41. Consumer goods is also the biggest mobile display industry sector Based on 15% of total mobile display revenues SOURCE: IAB / PwC Digital Adspend Full Year 2013
  42. 42. Consumer goods gains share in 2013 SOURCE: IAB / PwC Digital Adspend Full Year 2013 1% 2% 2% 4% 9% 9% 8% 10% 13% 22% 20% 1% 2% 2% 4% 7% 7% 9% 9% 11% 22% 24% Leisure Equipment Business & Industrial Government, Social, Political Organisations Travel & Transport Motors Finance Technology Telecomms Retail Entertainment & The Media Consumer Goods 2013 2012
  43. 43. Mobile is now 16% of digital SOURCE: IAB / PwC Digital Adspend Full Year 2013 0.8% 1.1% 2.0% 4.2% 9.7% 16.3% 2008 2009 2010 2011 2012 2013 17% of total search (2012 12%) 23% of total display (2012 10%) 0.3% of total classifieds (2012 0.2%)
  44. 44. Mobile growth vs online 10 years ago £19.4m £51.0m £153.1m £165.7m £196.7m £465.0m £825.1m £1,366.5 £2,853.3 £28.6m £37.6m £83.0m £203.2m £528.5m £1,031.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 Online Adspend Mobile Adspend 2008 2009 2010 2011 2012 2013 2014? 2015? 2016? SOURCE: IAB / PwC Digital Adspend Full Year 2013
  45. 45. 7. TABLET
  46. 46. 30 Tablet submissions
  47. 47. Tablet dedicated display ad spend *Note: This figure relates to tablet specific advertising only (i.e. not including internet advertising displayed on a tablet by default). It is based on revenues reported by companies participating in the online and mobile surveys who were able to report this figure separately, and can thus underestimate the overall size of the tablet dedicated advertising spend £34.4m* 2012 £6.8m SOURCE: IAB / PwC Digital Adspend Full Year 2013
  48. 48. 8. ADDITIONAL DATA
  49. 49. Brand advertising online is 17% of total SOURCE: IAB estimate based on IAB / PwC Digital Adspend Full Year 2013
  50. 50. 2013 showed a shift in revenue models Estimate only – based on 33% of measured revenue SOURCE: IAB / PwC Digital Adspend Full Year 2013
  51. 51. 9. LOOKING AHEAD AND SUMMARY
  52. 52. Forecasts for 2014 Source: This Year Next Year Summer 2013 (GroupM) & Enders Analysis Full year 2014 forecast GroupM Enders Analysis Average Advertising Market +6.0% +4.6% +5.3 Online +14.3% +15.1% +14.7 Display +14.1% +14.5% +14.3 Search +15.8% +23.1% +19.5
  53. 53. FirstPartner Forecast 2014-2018 Source: FirstPartner 734 849 972 1,078 1,178 496 611 703 784 859 102 142 199 249 275 21 25 30 34 35 0 500 1,000 1,500 2,000 2,500 2014 2015 2016 2017 2018 £ millions Messaging Video Display (Banners) Search Total £2,143m Total £2,346m Total £1,903m Total £1,627m Total £1,353m UK Mobile Advertising Spend Forecast 2014-2018
  54. 54. Summary for 2013 • Digital Adspend grows to £6.300 billion in 2013 • Up 15.2% on a like for like basis • Display up 22.1% on a like for like basis - £1,862.1 million • Classified up 8.9% on a like for like basis - £886.5 million • Search up 14.2% on a like for like basis - £3,494.9 million • Video, Social and Mobile continue to power display • Consumer Goods and Finance are the top spending display sectors, Entertainment and the Media now third • Mobile spend soars by 93.3% to reach £1.031 billion SOURCE: IAB / PwC Digital Adspend Full Year 2013
  55. 55. Big thank you and all contributing media owners
  56. 56. Research@iabuk.net 0207 050 6969
  57. 57. Disclaimer The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online Adspend figures collected by the IAB from its members in H2 2013 and to deliver to the IAB the topline figures collated from this review; PwC has not verified the information which it received from the IAB, and provides no opinion or other form of assurance with respect to such information. The publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and , to the extent permitted by law, neither the Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s contributors/subcontractors accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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