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IAB Review of UK Mobile Ad Spend 2009


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IAB Review of Mobile Ad Spend 2009 in the UK where over 13m users now access the mobile web per month.

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IAB Review of UK Mobile Ad Spend 2009

  1. 1. IAB/PwC mobile ad spend study April 27 th 2010
  2. 2. In today’s presentation <ul><li>Introduction </li></ul><ul><li>Methodology </li></ul><ul><li>The figures </li></ul><ul><li>Implications for advertisers </li></ul><ul><li>Outlook </li></ul><ul><li>Summary </li></ul><ul><li>Questions </li></ul>
  3. 3. 1. INTRODUCTION <ul><li>Jon Mew, Head of Mobile, IAB </li></ul>
  4. 4. Things started to get more interesting
  5. 5. Look smart <ul><li>Smartphones reach inflection point in UK </li></ul><ul><li>24% of the UK now have smartphones +70% YoY </li></ul><ul><li>Non-smartphones -10% YoY </li></ul><ul><li>RIM grows faster than Apple (RIM up 215%) vs (Apple up 196%) </li></ul><ul><li>UK has the fastest growth rate in Europe </li></ul>
  6. 6. Mobile internet usage is still growing Source: Comscore 3 month rolling average
  7. 8. UK GDP dives to – 6% YOY in Q2 2009 GDP Growth Economy grows by 0.3% in Q4 2009
  8. 9. IPA Marketers’ Bellwether Q4 2009 Total budgets revised down for the 9 th quarter in succession
  9. 10. The ad market was hit hard in 2009 Source: WARC Year on year growth for 2009 (TV without sponsorship) Total advertising market growth -12.6%
  10. 11. 2009 saw the biggest decline in ad spend since records began Source: WARC – based on current prices
  11. 12. 2. METHODOLOGY <ul><li>Eva Berg-Winters, PwC </li></ul>
  12. 13. The background… <ul><li>The IAB has been working with PwC since 1997 to survey the value of the online advertising market </li></ul><ul><li>These figures have become the industry standard for measuring advertising spend </li></ul><ul><li>This is the second year we have surveyed the mobile market </li></ul>
  13. 14. <ul><li>Display figures are based on actual revenues submitted by the survey participants </li></ul><ul><li>Figures are adjusted for double counting </li></ul><ul><li>Display figures are not adjusted to account for organisations that have not participated </li></ul><ul><li>Like-for-like growth rates only include revenues from companies that participated in both 2008 and 2009 </li></ul><ul><li>The display figures are drawn up on the basis of site declaration and have not been not verified </li></ul><ul><li>Search figures are estimated based on modelling, industry estimates and views from IAB members and experts including: Orange, T-Mobile, O2, 3, Enders, Mobile Commerce, Isobar, OMD, PwC, GroupM </li></ul><ul><li>Total advertising revenue is reported on a gross basis </li></ul>Methodology
  14. 15. Mobile advertising definition <ul><li>Only media spend reported to ensure fair comparison to other media including </li></ul><ul><ul><li>Display advertising </li></ul></ul><ul><ul><ul><li>Banners </li></ul></ul></ul><ul><ul><ul><li>Pre/post roll and in game </li></ul></ul></ul><ul><ul><ul><li>Other including advertising within sms/mms </li></ul></ul></ul><ul><ul><li>Search </li></ul></ul><ul><li>Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues like app production </li></ul>Banner ad Pre/post roll Search In SMS / MMS
  15. 16. Research participants Thank you
  16. 17. 3. THE FIGURES <ul><li>Jon Mew, Head of Mobile, IAB </li></ul>
  17. 18. Total mobile market 2009 <ul><li>£37.6m </li></ul>Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
  18. 19. Total mobile market 2009 vs 2008 <ul><li>+32.2% (like for like) </li></ul>Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
  19. 20. 2009 total mobile ad spend breakdown Source : IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates Total market £37.6m (50%) (41%) (4%) (4%) (1%) (2008 % share figures)
  20. 21. Growth for most formats Source : IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates + 26% -47% + 26% +41% + 17%
  21. 22. 2009 total mobile display breakdown Source: IAB / PwC mobile display ad spend survey 2009 Total display £17.4m (9%) (82%) (2008 % share figures) (7%) (2%)
  22. 23. 2009 display revenue by quarter Source: IAB / PwC mobile display ad spend survey 2009 36% Q4 - 36% higher than next nearest quarter
  23. 24. Every quarter showed growth Source: IAB / PwC mobile display ad spend survey 2009 +28% +10% +20% +36%
  24. 25. Industry sector display market shares Source: PricewaterhouseCoopers / Internet Advertising Bureau IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser and misc figures and covers 55% of mobile display revenues in 2009 . Based on 55% of total display ad spend
  25. 26. 4. IMPLICATIONS FOR BRANDS IN 2010 <ul><li>Kieron Matthews, Marketing Director, IAB </li></ul>
  26. 27. “ We’ve seen brands’ interest and confidence in mobile increase rapidly over the past 6 months, we’re making it a cornerstone of our activity as the time of mobile has already arrived ” Oliver Newton Head of Emerging Platforms I-Level
  27. 28. “ Despite the tough economic climate in 2009, we have seen many brands spending on mobile for the first time indicating the growing importance of this channel in reaching a large engaged consumer audience with the right message in the right place and at the right time ”    Ed Laws Director Yahoo! mobile marketplace, EMEA
  28. 29. Source: Comscore GSMA/MMM
  29. 30. £
  30. 34. Summary <ul><li>Ensure that you have adequate , optimised content for the time users ‘ could ’ spend with you </li></ul><ul><li>Begin to develop m-commerce solutions – NOW </li></ul><ul><li>Ensure that your site/content is optimised for mobile </li></ul><ul><li>Think beyond the app </li></ul><ul><li>Ensure that your search is optimised for mobile, but make sure the content is there to click to </li></ul>
  31. 35. 5. OUTLOOK
  32. 39. Outlook – continued growth expected IAB Results +33%
  33. 40. 6. SUMMARY
  34. 41. Already hitting the headlines
  35. 42. Key headlines <ul><li>Total market grows 32% despite worst year on record for advertising </li></ul><ul><li>Entertainment and media spend dominates </li></ul><ul><li>Consistent growth in every quarter year on year </li></ul><ul><li>Very strong finish to year Q4 up 36% </li></ul><ul><li>Positive indications for 2010 and still plenty of room for growth </li></ul>
  36. 43. 7. QUESTIONS <ul><li>For more information </li></ul><ul><li> </li></ul><ul><li>020 7050 6960 </li></ul>
  37. 44. Disclaimer The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the mobile adspend figures collected by the IAB from its members in January through April 2009 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. This 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 Interactive 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.