ADEX  BENCHMARK        2011       EUROPEAN ONLINEADVERTISING EXPENDITUREPublished 9th July 2012
CONTENTS    3    Introduction    4    About this report    5    Executive Summary         Section 1 - AdEx 2011 Analysis  ...
INTRODUCTIONThis year’s report documents the ongoing success story for onlineadvertising. As of 2011, on average 20% of al...
ABOUT THIS REPORT    The sources of the online advertising spend data contained within    this report are the annual indus...
EXECUTIVE SUMMARYDespite the continued weak macroeconomic conditions across                In Europe, individual market gr...
SECTION 1 - AdEx Benchmark 2011 Analysis    2011 GROWTH IN CONTEXT    ONLINE ADVERTISING STABILISES IN 2011               ...
SECTION 1 - AdEx Benchmark 2011 Analysis                                                                        2011 GROWT...
SECTION 1 - AdEx Benchmark 2011 Analysis    26 MARKETS IN PERSPECTIVE    Volume – Online advertising spend distribution st...
SECTION 1 - AdEx Benchmark 2011 Analysis                                                                                  ...
SECTION 1 - AdEx Benchmark 2011 Analysis     26 MARKETS IN PERSPECTIVE     Online share of total media ad spend – 1 in 5 E...
SECTION 1 - AdEx Benchmark 2011 Analysis                                                                                  ...
SECTION 1 - AdEx Benchmark 2011 Analysis     SHARE OF FORMATS     In 2011, paid-for-search remained the largest segment of...
Section 2 - Online advertising overview by sector                                                                         ...
Section 2 - Online advertising overview by sector     DISPLAY     Top 10: Display value by country 2011 and 2010 (€m)     ...
Section 2 - Online advertising overview by sector                                                                         ...
Section 2 - Online advertising overview by sector     CLASSIFIEDS & DIRECTORIES                                         1 ...
Section 2 - Online advertising overview by sector                                                            CLASSIFIEDS &...
Section 2 - Online advertising overview by sector     CLASSIFIEDS & DIRECTORIES     Top 10: 2011 YoY Classifieds & Directo...
Section 2 - Online advertising overview by sector                                                                         ...
Section 2 - Online advertising overview by sector     PAID-FOR-SEARCH     Rest of Europe: Search value by country 2011 and...
Section 2 - Online advertising overview by sector                                                                         ...
Section 2 - Online advertising overview by sector     MOBILE     Mobile still a nascent medium                            ...
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
Adex Benchmark 2011 (Iab Europe) -JUL12
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Adex Benchmark 2011 (Iab Europe) -JUL12

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Informe ADEX 2011 elaborado por iab europe referente a la inversión en publicidad digital en 26 países de Europa. (inglés)

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  1. 1. ADEX BENCHMARK 2011 EUROPEAN ONLINEADVERTISING EXPENDITUREPublished 9th July 2012
  2. 2. CONTENTS 3 Introduction 4 About this report 5 Executive Summary Section 1 - AdEx 2011 Analysis 6 2011 Growth in context 8 26 Markets in perspective 12 Share of formats Section 2 - Online advertising overview by sector 13 Display 16 Classifieds & Directories 19 Paid-for-search 22 Mobile 23 Video Section 3 - Overview by country 24 Western Europe 28 Central & Eastern Europe Section 4 - Background data 31 TOP properties December 2011 36 TOP ad publisher sites 2011 39 Internet penetration in Europe 2011 Section 5 - Appendices 41 Appendix i 42 Appendix ii 43 Appendix iii 43 Appendix iv 47 Our research partners 48 About IAB Europe 49 And finally2 IAB Europe AdEx Benchmark 2011
  3. 3. INTRODUCTIONThis year’s report documents the ongoing success story for onlineadvertising. As of 2011, on average 20% of all advertising budgets Digital media and digital marketing are and will remain ain Europe were dedicated to online. One out of five advertising key growth engine of the economy in Europe. The sus-Euros is now invested in online platforms. tainable success of the digital economy continues even and especially in tough economic times. Not only theInitially, the IAB network discussed including 10 countries by 2010 rapid development of digital markets in Eastern Europeand hoped to reach an average of 10% online market share. The shows that this pan-European trend is far from comingreality today looks quite different. The 2011 AdEx Benchmark to an end - especially the remarkable figures in Europe’sincludes 26 countries and the average online markets share in core countries just show that the digitization of theEurope is 20%. Despite the recession, our industry has been per- economy is continuing unabatedly. This also is reflectedforming very well, growing 14.5% in 2011. Direct response and by the latest AdEx Benchmark report.branding formats are flourishing, indicating that advertisers areconsidering digital advertising for various aspects of their market- Thomas Duhr, Executive Sales Manager,ing and communication strategies. United Internet Media AGIn 2011, media buyers invested 21 billion Euros online in our con-tinent, bringing our market close to the size of the US and alsoputting online within the top 3 media in each country, in terms ofad spend.The currency of our success is ‘data’ as it makes advertising morerelevant for the consumer and more efficient for the advertiser.However, as we continue to integrate data in online advertising wehave to act with respect, in order to build trust and transparencywhilst maintaining standards and simplicity.Alain Heureux, CEO & President, IAB Europe© IAB Europe 3
  4. 4. ABOUT THIS REPORT The sources of the online advertising spend data contained within this report are the annual industry benchmarking studies run by each national Interactive Advertising Bureau (IAB) in Europe. The national benchmarking studies represent the income of thousands of websites and online advertising businesses. The reported results are considered the closest measurement of online advertising revenues across Europe as the data is compiled directly by local IABs based on information supplied by compa- nies selling advertising online in each country. Only IABs that were able to provide 12 full months of advertising expenditure data are included. With the entry of IAB Serbia, the AdEx Benchmark cov- ered 26 local IABs in 2011. The data for this report is stated on the basis of actual gross in- come (the amount of actual spend invoiced by the publisher in- cluding any agency commission). To avoid any double-counting, production costs and pan-regional ad spend are taken out of the IHS Screen Digest does not audit the information or the data from figures provided by the local IABs. local IABs and provides no opinion or other form of assurance with respect to the information. Only aggregate results are published The report incorporates data from the following online advertising and individual company information is held in strict confidence by formats: the audit partners of local IAB studies. • Display • Classifieds & Directories • Paid-for-search Where national IABs report data for spend on mobile online adver- tising this is incorporated into the relevant advertising format total. IAB Europe in partnership with IHS Screen Digest collates and aggregates the data and makes the adjustments necessary to en- able the data to be comparable. Full details of this process for each country are provided in Appendix iv. The result is comparable data based on actual revenues from across Europe. This is the sixth edition of the report and therefore once again we are able to include year-on-year comparisons in for those countries that have provided data for at least two years.4 IAB Europe AdEx Benchmark 2011
  5. 5. EXECUTIVE SUMMARYDespite the continued weak macroeconomic conditions across In Europe, individual market growth in 2011 ranged from 55.5%Europe and globally, Europe’s online advertising market contin- in Russia and 40.0% in Croatia, to 5.5% in Norway and 4.6% inued to grow double-digit in 2011. Investment in all online formats Romania. Central and Eastern European (CEE) markets increasedincreased during this period 14.5% year-on-year1, with paid- their share of total European online ad spend from 10.1% in 2010for-search leading the surge, closely followed by display. Online to 11.8% in 2011. It is important to note that the UK and Germanygrowth outperformed the overall advertising market, which ex- alone account for 45.2% of all European online ad spend. Russiacluding online grew at a sluggish 0.8% in 2011. has established itself as the sixth biggest market with a value of €1.12bn, buoyed particularly by a surging search market.The European online advertising market crossed the €20 billionmark for the first time at €20.9 billion in 2011, up from €18.3 billion Paid-for-search and display drove online advertising growth in 2in the previous year . Online accounted for 21.7% of European 2011. Increasing 17.9%, paid-for-search reached €9.72 billion,advertising spend. closely followed by display which rose by 15.3% to €7.03 billion. Even Classifieds & Directories, a format which usually suffers inThe USA remains slightly ahead of Europe in terms of online ad- a tough economic environment due to high exposure to the job,vertising revenues which amounted to €24.5 billion in 2011 follow- real-estate, and automotive markets, increased by 5.7% in 2011ing year-on-year growth of 21.9%. Apart from a healthy online in- to just over €4 billion.dustry, US growth also benefitted from the presidential primaries. The present report provides detailed analysis of developments in each format across the 26 participating countries.Online grows 14.5% in 2011 25 20 14.5% €20.9bn €18.3bn 15 €bn 10 European online advertising: year-on-year growth (%) 5 25 0 40.0% 2010 2011 21.3% 20 17.9% 16.1% 15.4% 15.3% 14.5% 15Online ad spend: Europe vs USA % 10 7.4% 5.7% 25 5 €24.5bn 20 €20.9bn 0 €20.1bn Paid-for-search Display Classified & Total €18.3bn Directories 15 2010 2011€bn 10 5 1. Year-on-year growth is calculated excluding the ‘other’ category to maintain comparability across countries. Serbia was an exception 0 to this rule, where most of ‘other’ constituted of social media spend, 2010 2011 which is normally reported as part of display advertising. 2. At constant 2011 currency exchange rates. Europe USA© IAB Europe 5
  6. 6. SECTION 1 - AdEx Benchmark 2011 Analysis 2011 GROWTH IN CONTEXT ONLINE ADVERTISING STABILISES IN 2011 markets. Online was also affected, but nevertheless outperformed all other media and achieved an overall growth of 4.5%. Some Spend on European online advertising has grown every year since of the emerging online markets saw a slight decline though, as IAB Europe began benchmarking the market in 2006. the sector was still fragile. The overall growth was maintained by paid-for-search, which managed to grow 10.8% despite tough In 2007, spend on online advertising grew by 40%. This was economic conditions, as advertisers were reassured by the direct driven by substantial growth in the dominant high value Western response payment structure. European markets such as Germany, the UK, and France. In 2010, Europe’s online advertising industry rebounded with an As these markets matured in 2008, their growth decelerated and increase of 15.3%, indicating a recovery from the 2009 slowdown. clustered around 20%. High growth was still present in some Display led this surge with a 21.3% increase, as new advertisers emerging markets like Poland and Slovenia, however the total val- entered the medium and existing online advertisers increased their ue of these markets was not sufficiently large to have a substantial spend on branding campaigns. impact on the overall European growth rate. In 2011, online maintained its double-digit growth despite tough In 2009, the effect of the economic recession was strongly felt macroeconomic conditions with a year-on-year growth rate of in the advertising sector which saw significant declines in many 14.5%, indicating the ongoing confidence that advertisers place in online as an advertising medium. Online advertising growth over time 40% 40 35 30 25 % 20.2% 20 15.3% 14.5% 15 10 4.5% 5 0 2007 2008 2009 2010 20116 IAB Europe AdEx Benchmark 2011
  7. 7. SECTION 1 - AdEx Benchmark 2011 Analysis 2011 GROWTH IN CONTEXTONLINE OUTPERFORMED WEAK ECONOMY 2011, helped by the reliable measure of return-of-investment (ROI), as evidenced by the 17.9% increase in the format. Advertis-Advertising markets are in general very susceptible to changes in ers increasingly also recognise online as a brand advertising medi-the macroeconomic environment. In the context of the European um. This is reflected in a growing video share, which commandedsovereign debt crisis, high unemployment and cutbacks in con- 7.6% of all online display ad spend in 2011.sumer spending, advertising spend suffered disproportionately onmost media in 2011. Secondly, the increased use of demographic, behavioural and other consumer data in online display advertising, paired with al- 1Total European advertising across all media grew by 3.6% in gorithmic processing, allows enhanced targeting capabilities that2011, but would have experienced a mere increase of 0.8% with- can improve cost efficiency.out the contribution of online. In Western Europe, total advertis-ing excluding online would have declined by 1.0%, but with the Thirdly, there is a long-term trend for advertisers to shift ad budg-11.5% surge in online ad markets, the region ended the year with ets from mature to emerging markets, which is fuelling their onlinea growth of 1.3%. Online also lifted CEE markets from what would economy. in 2011, CEE countries constituted 11.8% of Europeanhave been a 5.5% growth in ad markets excluding online to a online ad spend, up from 10.1% in the previous year.9.1% total media advertising growth rate year-on-year.In comparison to traditional media, online advertising is not as ex-posed to macroeconomic fluctuations.Firstly, online offers a diversity of formats and payment structures 1. The 26 countries participating in the studyto choose from. Growth in paid-for-search remained resilient inOnline advertising in context: Year-on-year growth 19.7% 20 14.5% 15 11.5% 10 9.1% % 5.5% 5 3.2% 3.6% 1.5% 1.3% 1.7% 0.8% 0 -1.0% WE CEE Total Europe -5 Nominal GDP All media advertising Online All media advertising excl. online© IAB Europe 7
  8. 8. SECTION 1 - AdEx Benchmark 2011 Analysis 26 MARKETS IN PERSPECTIVE Volume – Online advertising spend distribution stable in 2011 2011 did not show any significant shifts in the composition of the top 10 countries investing in online advertising versus 2010. The most notable change was Russia’s assertion as the sixth largest online market in Europe at €1.12 billion, surpassing Spain, whose expenditure remained below €1 billion. Russia is still the only CEE market in the top 10 online advertising spenders, with a €752 million difference to the next country within the CEE region (Poland). The UK remained the largest online advertising market and is the first to have exceeded €5 billion. It accounted for 26% of all European online advertising, down from 27% in 2010. In second place, Germany’s share stood at 19% in 2011 corresponding to total market value of €4 billion. France maintained its bronze medal in 2011, whereas Italy surpassed the Netherlands to claim fourth place. The growth rates of these countries ranged between 8% and 15%, but were not significant enough to alter their ranking within the top 10. Top 10: Total by country 2011 and 2010 (€m) UK €5,510m Germany €3,959m France €2,287m Italy €1,249m Netherlands €1,200m Russia €1.121m Spain €925m 2011 2010 Sweden €687m Norway €558m Denmark €524m 0 1,000 2,000 3,000 4,000 5,000 6,000 Rest of Europe: Total by country 2011 and 2010 (€m) Poland €439m Switzerland €422m Belgium €365m Turkey €360m Austria €296m Czech Rep €269m Finland €254m Ireland €132m Hungary €108m Greece €100m 2011 Slovakia €45m 2010 Slovenia €32m Bulgaria €30m Croatia €26m Romania €22m Serbia €12m 0 100 200 300 400 5008 IAB Europe AdEx Benchmark 2011
  9. 9. SECTION 1 - AdEx Benchmark 2011 Analysis 26 MARKETS IN PERSPECTIVEGrowth – CEE region outpaces Western EuropeThe markets which demonstrated the highest growth in online advertising in 2011 were countries from the CEE region. Russia led thegroup with a growth of 55.5%, driven mostly by a surging search market and expanding internet population. Croatia, Serbia, and Slove-nia which are display-driven markets, grew by 40.0%, 35.6%, and 31.1%. Slovakian and Polish online ad markets increased 29.7% and23.1%, with strong growth across formats, while Turkey exhibited a robust growth rate at 22.4%.CEE countries grew the strongest in 2011 60 55.5% 50 40 40.0% 35.6% % 31.1% 30 29.7% 23.1% 22.4% 20 19.7% 15.5% 15.2% 15.1% 14.3% 14.2% 14.1% 13.5% 13.3% 12.8% 12.6% 11.3% 10.7% 11.0% 10 9.9% 8.8% 7.9% 5.5% 4.6% 0 ia ia ia ia ia d y e ly d rk n a n y s a y e y a ss oat rb en ak lan rke eec Ita rlan ma UK land de gari pai gar and stri an Rep gium anc land rwa ani Ru Cr Se Slov Slov Po Tu Gr e en itz D Ire Swe Bul S un erl Au erm ch el Fr Fin o om B N R H th G ze Sw Ne C CEE WEThe Western European region also experienced healthy growth ranging from 5.5% in Norway, the most mature market with the highestonline ad spend per capita, to 19.7% in Greece, a nascent country in terms of online advertising which demonstrates dynamics morerepresentative of the CEE market, despite the country’s huge macroeconomic uncertainty.© IAB Europe 9
  10. 10. SECTION 1 - AdEx Benchmark 2011 Analysis 26 MARKETS IN PERSPECTIVE Online share of total media ad spend – 1 in 5 European advertising Euros invested online Pairing online advertising data provided in this report with IHS Screen Digest valuations1 for all other media (television, print, cinema, radio, and out-of-home) reveals substantial variations in the online advertising market share across Europe. Higher market share indicates a more developed market, where the majority of advertisers invest in online in some way, and where ad- vertisers have a wide variety of formats and online channels from which to choose. Low market share for online advertising suggests that a market has headroom for growth, as it indicates that that there are still plenty of advertisers in the market who have not yet devoted themselves to the online medium. Online market share of total advertising ad spend across Europe reached 21.7% in 2011. This means that more than 1 in 5 European advertising Euros was invested online. The UK was the most developed online market in Europe at 35.9% share in 2011, while Greece despite its strong growth of 19.7%, occupied the last position with a share of 6.8%. Western European markets had a higher market share at 22.7% compared to the CEE equivalent of 16.9%. However, looking at national markets individually reveals that market shares within Western Europe on the one hand, and Central and Eastern Europe on the other are not homogeneous. For instance, Austria and Switzerland exhibit a low online share of their total media advertising spend at 13.0% and 13.9%, lower than most CEE countries. Market shares calculated from IAB Europe and IHS Screen Digest data may vary from those published in the local markets by the national IABs. This is because the national IABs may have used a source other than IHS Screen Digest for the valuation of the total advertising market in that country. 1. IHS Screen Digest valuations were used for all markets except for Poland and Hungary, upon request. For Poland we used Starlink figures and for Hungary we used Hungarian Advertising Association figures. 2011 online share of all media ad spend (%) 40 35.9% 35 30 28.9% 27.9% 27.9% 25 24.9% 23.4% 22.7% % 21.7% 21.4% 20.6% 20 18.8% 18.1% 17.1% 16.9% 16.2% 15.9% 15.9% 15.9% 15 15.2% 15.0% 14.8% 14.2% 13.9% 13.8% 13.0% 13.0% 10 7.3% 7.2% 5 6.8% 0 s k y y y y y UK Rep and ar rwa eden WE rope an ance gar enia gium CEE land land pain ssia Ital akia land garia rland rke oatia stria erbia ania eece m v S Ru lov Ire Bul itze ch herl Den No Sw Eu erm Fr Hun Slo Bel Po Fin Tu Cr Au S om Gr e Cz Net tal G S Sw R To10 IAB Europe AdEx Benchmark 2011
  11. 11. SECTION 1 - AdEx Benchmark 2011 Analysis 26 MARKETS IN PERSPECTIVEOnline ad spend per capita – Scandinavian countries most mature in EuropeUsing IHS population numbers, ad markets exhibit variation in online spend per capita across the region.Online ad spend per capita is a metric that helps to evaluate the maturity and scope for development of a market. It shows how much anonline consumer is worth in terms of advertising in a given market. By use of population data, online ad spend per capita uses a normalisedbasis and is therefore well-suited to compare and benchmark online advertising markets. It highlights the maturity of an online market ir-respective of its size or absolute revenues incurred.The most mature online markets in Europe in 2011 were the Scandinavian countries (Norway, Denmark, and Sweden) and the UK. Nor-way led at €113.4 per capita indicating that advertisers have already embraced online across formats. On the other hand, monetisation inRomania is still lagging behind as online ad spend per capita stood at a mere €1.0. The average online ad spend per capita in 2011 was€33.5, below which value we find all high growth markets, such as Russia, Croatia and Serbia at €7.8, €6.0 and €1.7 per capita.Online ad spend per capita in 2011 €113.4 120 €95.4 €87.8 Online ad spend/capita (€) 100 €72.8 €72.1 80 €53.4 €48.4 €47.1 60 €36.1 €35.1 €34.1 €33.5 €29.2 €25.6 40 €20.5 €19.5 €15.6 €11.5 €10.8 €8.8 €8.2 €7.8 20 €6.0 €4.9 €4.1 €1.7 €1.0 0 ay rk s y y y y UK eden and rland an land ance stria gium Avg land Rep Ital pain enia land gar eece akia ssia oatia rke garia erbia ania rw ma rl S lov Po un Gr v Ru Tu Bul No Den e Sw the witz Ge rm Fin Fr Au Bel ean Ire ech S H Slo Cr S om R Ne S ro p Cz EuOnline ad spend per capita has grown persistently despite adverse external conditions or the state of all other media advertising since2005. Whereas total ad spend per capita and TV ad spend per capita fell in 2009 (during the recession) and have yet to return to 2008levels, online has consistently increased its ad spend per capita, steadily catching up to TV ad spend per capita. This points towards animproved monetisation of online audiences over time.Online ad spend per capita continues to grow despite total ad spend per capita decline Online ad spend/capita (€) 150 120 90 60 30 0 2005 2006 2007 2008 2009 2010 2011 Online TV Total Media© IAB Europe 11
  12. 12. SECTION 1 - AdEx Benchmark 2011 Analysis SHARE OF FORMATS In 2011, paid-for-search remained the largest segment of online Paid-for-search remains the largest segment advertising. Both paid-for-search and display formats increased their share of online advertising. Paid-for-search climbed from 100 45.1% in 2010 to 46.5% in 2011. Display had a share of total on- 20.9% 19.3% line advertising of 33.4% in 2010 and managed to arrive at 33.6% 80 in 2011. This was at the expense of Classifieds & Directories, 60 45.1% 46.5% % whose share of the online ad pie diminished from 20.3% in 2010 40 to 19.3% in 2011. Its share loss is due to the faster expansion of the other formats and an adverse economic environment to which 20 33.4% 33.6% the category is particularly susceptible. 0 2010 2011 Display Paid-for-search Classifieds & Directories Other Share of formats by region Western Europe: share of formats in 2011 CEE: share of formats in 2011 0.7% 0.6% 6.9% 20.9% 32.0% 45.1% 47.4% 46.3% Display Display Paid-for-search Paid-for-search Classified & Directories Classified & Directories Other Other Paid-for-search dominated Western European online ad spend in 2011, accounting for 46.3% of the total. Display came second with 32.0%. The Central and Eastern European online advertising market in aggregate is evenly divided among paid-for-search at 47.4% and display at 45.1%. Due to a strong Russian search market, making up 60.8% of the national online advertising total, the role of search across the region is positively skewed. Excluding Russia, display appears as the prominent format in the region at 50.0% as search is lagging behind in most markets at 36.3% on average.12 IAB Europe AdEx Benchmark 2011
  13. 13. Section 2 - Online advertising overview by sector DISPLAYDisplay surge persists in 2011 YoY growth in European Display 2007-2011• Value: €7.03bn 45 39.0%• Accounts for 33.6% of all online advertising spend 40• YoY growth of 15.4% 35 30• Top five countries by value: Germany, UK, France, Italy, % 25 21.3% Netherlands 20 15.1% 15.4%• Top five by growth: Serbia, Croatia, Russia, Slovakia, 15 10 Slovenia 0.3% 5 0 2007 2008 2009 2010 2011At 15.4% growth, display ad spend grew again double-digit in 2011, following 21.3% in 2010. This reinforced the strength of the format,which even in an economically weaker 2011 managed to grow at similar levels to 2010, when it took advantage of an automatic reboundin advertising investments after the 2008 and 2009 recession. Despite this growth however, display’s share of online ad spend remainedstatic at 33.6%, only 0.2% higher than in 2010.There is a number of trends behind this development as advertisers are both increasing ad spend on branding campaigns, but also invest-ing more in data-driven display advertising. Furthermore, online display advertising is increasingly benefitting from growth in pan-regionalad spend. This approach is widespread in TV and online can leverage this as TV and online are increasingly booked in conjunction ratherthan against each other.Online branding campaignsThe increase in online branding campaigns of 2010 continued in 2011. This is apparent as more FMCG companies invested in onlinedisplay. In the UK, for instance, consumer goods constituted 14.8% of display spending, only second after financial services at 15.0%. In2011, branding campaigns made up 42.3% of UK online display, up from 40% in 2010.This represents a 26.1% increase in online displaybrand advertising versus 13.4% for total display.Furthermore, online video, the online format that most resembles TV as an effective brand messenger, is also becoming more prominent.In 2011, it made up 7.6% of European online display with two markets (UK, Germany) spending over €100 million on video ads.Data-driven displayDisplay advertising growth was also driven by the application of so-called ‘big data’. Big data relies on the rich metrics received throughthe online medium to plan display advertising. Using ad exchanges, real-time bidding and algorithmic trading, advertisers can reach bothbroad and niche audiences that meet their exact criteria. These data-driven techniques can increase the cost-efficiency of online advertis-ing, maximising cheaper, remnant inventory to reach consumers.© IAB Europe 13
  14. 14. Section 2 - Online advertising overview by sector DISPLAY Top 10: Display value by country 2011 and 2010 (€m) Germany €1,379m UK €1,299m France €636m Italy €556m Netherlands €468m Russia 2011 €439m Spain 2010 €402m Sweden €242m Poland €198m Norway €198m 500 1000 1500 Rest of Europe: Display value by country 2011 and 2010 (€m) Denmark €186m Turkey €170m Switzerland €151m Czech Rep €142m Austria €106m Belgium €105m Finland €102m Hungary €55m Ireland €52m Greece €36m 2011 Slovenia €25m Slovakia €24m 2010 Romania €20m Bulgaria €16m Croatia €14m Serbia €7m 50 100 150 200 Advertising beyond the banner: Advertisers are experi- Branding is the big trend and a key for digital evolu- menting with long form storytelling on the web enabling tion! More than any other approach in online marketing, them to better connect with consumers, and to deliver branding will truly revolutionize digital advertising. While their brand goals. Richer creative canvases, multi-screen performance goals are still working fine in their seg- touch points, and branding metrics to prove success, ments, only branding has the strength to pave the way along with the power of consumers acting as re-circula- for the big advertisers to use the internet for mass reach tors of brands’ communications are all fuelling growth in campaigns as in TV or print. Even further than in classic this area. Premium brand advertising is finding a home media, the vast opportunities digital media has to offer on the web. such as targeting and data, will take campaign plan- ning as well as efficiency to a whole new level. Many big Laura Chaibi, Research Director EMEA, Yahoo! brands are starting to make online their home already - the others will follow without a doubt. Stephan Nöller, CEO, nugg.ad14 IAB Europe AdEx Benchmark 2011
  15. 15. Section 2 - Online advertising overview by sector DISPLAYDisplay value and growth1,600 60%1,400 50%1,200 40%1,000 30% 800 600 20% 400 10% 200 Ge U F It N R S S P N D Tu S C A B F H Ir G S S R B C S 0% rm K ranc aly eth uss pain wed olan orw enm rke witz zec ustr elgi inlan ung elan ree love lova om ulga roa erbi er ia en d ay ar y er h R ia um d ar d ce n an tia a an y e lan k lan e y ia kia ia ria ds d p Value (€m) YoY Growth (%)Top 10: 2011 YoY Display growth by country Serbia Croatia RussiaSlovakiaSlovenia Ireland Greece Turkey Spain Austria 0 10 20 30 40 50 60 %Rest of Europe: 2011 YoY Display growth by country Finland Italy Germany Poland France UK Netherlands Denmark Switzerland Czech Rep Sweden Belgium Bulgaria Romania Norway Hungary 0 2 4 6 8 10 12 14 16 18 20 %© IAB Europe 15
  16. 16. Section 2 - Online advertising overview by sector CLASSIFIEDS & DIRECTORIES 1 Classifieds & Directories ad spend increased despite shaky economy • Value: €4.03bn • Accounts for 19.3% of all online advertising spend • YoY growth of 5.7% • Top five countries by value: UK, France, Germany, Norway, Italy • Top five by growth: Slovakia, Poland, Serbia, Hungary, Spain Classifieds & Directories grew 5.7% in 2011, less than the format’s 7.5% increase in 2010. This is due to the weakening of the European economy. Classifieds & Directories advertising is dominated by the job, real estate, and automotive sectors. The adverse macroeconomic conditions with struggling job, real estate, and automotive markets, generated more caution among advertisers when investing in Clas- sifieds & Directories ads. Top 10: Classifieds & Directories value by country 2011 and 2010 (€m) UK €905m France €739m Germany €712m Norway €243m Italy €239m Netherlands €202m 2011 Sweden €201m 2010 Switzerland €143m Belgium €120m Denmark €113m 200 400 600 800 1,000 1. Classifieds & Directories ad spend is available for 25 countries. Russia has not been included in this category on instructions by IAB Russia.16 IAB Europe AdEx Benchmark 2011
  17. 17. Section 2 - Online advertising overview by sector CLASSIFIEDS & DIRECTORIESRest of Europe: Classifieds & Directories value by country 2011 and 2010 (€m) Poland €81m Finland €81m Austria €68m Spain €64m Turkey €29m Ireland €26mCzech Rep €25m 2011 Hungary €17m 2010 Slovakia €7m Croatia €5m Greece €5m Bulgaria €3m Slovenia €1m Serbia €1m Romania €0.2m 10 20 30 40 50 60 70 80 90Classifieds & Directories value and growth1,000 40% 900 30% 800 20% 700 10% 600 0% 500 -10% 400 -20% 300 -30% 200 -40% 100 0 -50% e y y y s n k a n y y a a e a a a a UK anc an rwa Ital and de land gium ar land land stri pai rke land Rep gar aki oati eec gari eni rbi ani F r erm o N rl we zer el enm Po Fin Au e S it B D S Tu Ire ch un lov Cr Gr S ul lov Se om B S G th e H R Ne Sw Cz Value (€m) YoY growth (%)© IAB Europe 17
  18. 18. Section 2 - Online advertising overview by sector CLASSIFIEDS & DIRECTORIES Top 10: 2011 YoY Classifieds & Directories growth by country Slovakia Poland Serbia Hungary Spain Croatia Turkey Switzerland Italy Greece 0 5 10 % 15 20 25 30 35 Rest of Europe: 2011 YoY Classifieds & Directories growth by country Finland Sweden Belgium Netherlands UK Slovenia Germany Norway Austria France Denmark Ireland Bulgaria Czech Rep Romania -50 -40 -30 -20 -10 0 10 %18 IAB Europe AdEx Benchmark 2011
  19. 19. Section 2 - Online advertising overview by sector PAID-FOR-SEARCHPaid-for-search reclaims status as fastest- YoY growth in European Search 2007-2011growing segment 45 39.0%• Value: €9.72bn 40 36.0% 35• Accounts for 46.5% of all online advertising spend 30• YoY growth of 17.9% % 25 17.9% 20 16.1%• Top five countries by value: UK, Germany, France, Russia, 15 and Netherlands 10 10.8%• Top five countries by growth: Romania, Slovenia, Russia, 5 Croatia, and Poland 0 2007 2008 2009 2010 2011In 2011, paid-for-search reclaimed its status as fastest growing segment of online advertising after display growth outperformed search in2010. It was the sole online format which experienced growth acceleration at 17.9% in 2011, up from 16.1% in 2010. Amounting to €9.72billion, paid-for-search accounted for 46.5% of total online advertising in 2011 and remains the biggest part of online advertising spend.Paid-for-search has seen robust growth in many emerging markets with nine countries experiencing growth above 30% year-on-year. Ro-mania, Slovenia, and Russia increased the size of their search market by over half of its value in 2010 at 69.9%, 66.7%, and 62.6% growth.This is because CEE markets, with the exception of Russia, are generally display-driven and had been lagging behind in development forthe paid-for-search format.Paid-for-search growth is still strong in mature markets with all but one country experiencing double-digit growth. This confirms the successof the format’s return-on-investment propositions. It is also indicative of innovation in search. Paid-for-search has expanded into video andlocation-based services and is also used in cross-media campaigns.Top 10 : Search value by country 2011 and 2010 (€m) UK €3,187m Germany €1,868m France €913m Russia 2011 €681mNetherlands €530m 2010 Spain €460m Italy €448m Sweden €233m Denmark €223m Poland €159m 500 1,000 1,500 2,000 2,500 3,000 3,500© IAB Europe 19
  20. 20. Section 2 - Online advertising overview by sector PAID-FOR-SEARCH Rest of Europe: Search value by country 2011 and 2010 (€m) Turkey €152m Belgium €140m Switzerland €129m Austria €122m Norway €118m Czech Rep €102m Finland €72m Greece €60 2011 Ireland €54 2010 Hungary €35 Slovakia €13 Bulgaria €11 Croatia €7 Slovenia €5 Serbia €2 Romania €1 20 40 60 80 100 120 140 160 Search Value and growth 2011 80% 3,500 70% 3,000 60% 2,500 50% 2,000 40% 30% 1,500 20% 1,000 10% 500 0% 0 -10% y e a s n y n k y a y e y a a a a a a UK an anc ssi nd pai Ital de ar land rke ium land stri rwa Rep land eec land gar aki gari oati eni rbi ani m Fr Ru rla S g we enm Po Tu Bel itzer Au No ech Fin Gr Ire Hun Slov Bul Cr Slov Se om er e S D G th R Ne Sw Cz Value (€m) YoY growth (%)20 IAB Europe AdEx Benchmark 2011
  21. 21. Section 2 - Online advertising overview by sector PAID-FOR-SEARCHTop 10: 2011 YoY search growth by countryRomaniaSlovenia Russia Croatia Poland SerbiaBulgariaHungary TurkeySweden 0 10 20 30 40 50 60 70 80 %Rest of Europe: 2011 YoY search growth by country Switzerland Denmark Slovakia Greece Czech Rep Italy UK IrelandNetherlands Belgium Norway Austria Germany Spain France Finland -5 0 5 10 15 20 25 30 %© IAB Europe 21
  22. 22. Section 2 - Online advertising overview by sector MOBILE Mobile still a nascent medium Mobile display as a share of online display in 2011 While mobile advertising is still a nascent medium, it is becom- 6 ing increasingly prominent in campaigns. The IAB Europe AdEx 5 €5.3% Benchmark 2011 study received mobile display advertising 5.2% 4 ad spend from 14 markets. In 2011, mobile display advertising % 3 ranged from €0.1 million in Serbia to €69.1 million in the UK, with 3.7% 3.6% mature markets investing more in mobile display than the CEE 2 3.6% 0.7% 0.7% 0.5% 2.3% 2.2% 2.2% 1.8% 1.7% 1.5% region. Although these figures are still comparatively small, mo- 1 bile display has been increasing rapidly as a share of total display, 0 e n y y k s n y y a a reaching values that range from 0.5% in the Czech Republic to UK anc pai Ital rwa ar and de rke gar stri erbi land Rep m l e Tu un Fr S No Den ther Sw H Au S Po ech 5.3% in the UK. Ne Cz A small number of markets also supplied data for search and mes- saging. In the UK mobile search advertising amounted to €154.3 Smartphone penetration in Europe 2005-2016 million. Messaging was reported in Italy at €5.8m and Turkey at €9.3 million. 80 70 Mobile display advertising growth surged in 2011 as mobile in- 60 creasingly becomes a staple item in media plans. Growing organi- 50 % cally from a low basis, rising smartphone penetration, increased 40 30 data traffic and proliferation of the advertising ecosystem are key 20 factors behind this development. For instance, in 2011 mobile 10 display advertising grew by 124.0% in the UK and by 178.2% in 0 2011 2014 2015 2016 2005 2006 2007 2008 2009 2010 2013 2012 Sweden. Source: IHS Screen Digest This trend is set to continue as the addressable market for mobile advertising grows over time. As IHS Screen Digest data suggests, smartphone penetration in Europe reached 31.0% in 2011 and is Looking at our ad network from the global perspective, expected to grow to 77% by 2016. it’s clear that Android and iOS are by an immense dis- tance the two dominant platforms. Between them they Mobile display ad spend in 2011 (€m) account for 83% of all mobile ad activity worldwide, with 80 70 45% accounted for by iOS. The IAB’s data for mobile €69.1m 60 advertising spend is very consistent with our regional €33.0m 50 reach figures, showing that, when we compare value and €m 40 €19.9m spend with sufficiently large sample sizes, correlations €14.9m 30 €10.4m emerge that enable us to draw meaningful insights. €7.0m €5.3m €4.3m €3.0m €1.6m 20 €1.4m €0.9m €0.7m €0.1m 10 Paul Childs, CMO, Adfonic 0 e y s y n k y a y a UK anc Ital pain and rwa de ar rke stri land gar Rep erbi Fr S erl No we enm Tu Au Po un ch S th S D H ze Ne C22 IAB Europe AdEx Benchmark 2011

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