2011 mobile adspend full year results


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  • Below we have detailed the definitions used for each connected (connected to the internet) device type:Media Gateways – Either;(1) a NAS device which is removable or fixed storage, that has the ability to open itself on a WAN or LAN network independent of a standalone PC platform or (2) a Media Streamer which is a device which wirelessly transmits Video, Audiovisual, Picture or other data from one type of home environment to another (E.G: IT to CE)IPTVs – includes TV devices with Internet rendering through browser/html/app– excludes devices with Ethernet port only i.e servicing only. Also this does not include the internet TV boxes that can be used to access the internet on a TV
  • An indication of the investment in mobile advertising – VC funding and big companies like Google, Apple and Microsoft investing heavily has meant a steep ramp up in the size of ad networks, infrastructure
  • 2011 mobile adspend full year results

    1. 1. IAB/PWC Mobile Adspend Studyiabuk.net/contact 20 March 2012
    2. 2. Agenda• Context: What happened in 2011?• Methodology• IAB/PWC Mobile Adspend Data 2011• What does this mean for the future?
    3. 3. Context: What happened in 2011?iabuk.net/contact
    4. 4. Some of the drivers in 2011• Smartphones• Mobile internet usage• M-Commerce growth• Tablet impact• Search acceleration• Mobile gets investment
    5. 5. Smartphones dominate connected devices 30Million Media Gateways 25 Million IPTVs Tablets Smartphones 20 Million Netbooks Laptops Desktops 15 Million 10 Million 5 Million Q406 -Q307 Q407-Q308 Q408-Q309 Q409-Q310 Q410-Q311Source: GfK Retail and Technology UK sales data
    6. 6. Smartphones reach a tipping point 64% 36% feature phone Jan 2010 smartphone Jan 2010Source: comScore Mobilens 3 Month average Jan 2010
    7. 7. Smartphones reach a tipping point 47% 53% feature phone Jan 2011 smartphone Jan 2011Source: comScore Mobilens 3 Month average Jan 2011
    8. 8. Smartphones reach a tipping point 47% 53% feature phone Jan 2011 smartphone Jan 2011Source: comScore Mobilens 3 Month average Jan 2011
    9. 9. Mobile Internet audience grows again 24.6m 8.5m Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11Source: comScore Mobilens
    10. 10. Mobile internet growth accelerates Additional mobile internet users by year 5.5m 4.6m 3.5m 2.4m 0.06m 2007 2008 2009 2010 2011Source: comScore Mobilens
    11. 11. M-Commerce accelerates 24% have bought on their phone Average transaction up from £12.20 to £17.49 in 2011 % Mobile visits to e-retail sites up from 2.6% to 8.2% 2011 vs 10http://www.iabuk.net/research/library/m-commerce-consumer-research-2011http://www.imrg.org/ImrgWebsite/User/Pages/Press%20Releases-IMRG.aspx?pageID=86&parentPageID=85&isHomePage=false&isDetailData=true&itemID=7051&specificPageType=5&pageTemplate=7
    12. 12. Traffic growth is fastest in commerce health information 195% 106% Growth in mobile traffic online retail shopping guides 88% general reference 85% electronic payments 71% real estate listings 60% gambling services 59% restaurant information 57%Source: comScore Mobilens Aug 10- Jan 12
    13. 13. Tablet growth is surging 5 72% 4.5 growth in only 7 months Millions of iPad owners 4 3.5 3 2.5 Jun Jul Aug Sep Oct Nov Dec Jan iabuk.net/contactSource: comScore Mobilens July 2010 - Jan 12
    14. 14. Mobile search starts to be mainstream come 13.4% paid search from mobile of clicksSource: Latitude Mobile report 2012 http://www.latitudegroup.com/mobile/2012-latitude-mobile-report-2/
    15. 15. And revenues start to accelerateRegulation seeing a “Were alsoSocial positive revenue huge Media impact fromSub Groups mobile, whichBuilding Brands Online has grown 2.5Social Media Training and IAB auto events times in the lastAny Other Business a run 12 months to rate of over $2.5 billion.” Larry Page, CEO,Google 13/10/11iabuk.net/contact
    16. 16. VCs ramp up mobile spending $592m $161m $138m $123m $115m $92m $29m 2005 2006 2007 2008 2009 2010 2011Source: Rutberg & Company, Global VC Investments in Mobile Marketing & Advertising
    17. 17. 2010-2011 growth per media 10.6% 3.8% 1.1% 1.1% 1.7% -1.1% -7.0% Press Cinema Out of Direct TV Radio Internet home MailSource: % change 2010-2011 estimates from The Advertising Association/Warc Expenditure Report
    18. 18. Methodologyiabuk.net/contact
    19. 19. The background…• The IAB has been working with PwC since 1997 to survey the value of the online advertising market• These figures have become the industry standard for measuring advertising spend• We have started measuring mobile adspend in 2008 – this is the fourth year we have surveyed the mobile market
    20. 20. Reported vs estimated survey dataReported data Estimated data• Survey includes revenues • Study includes estimation of submitted by 28 participants search revenues as well as• The figures are drawn up on Admob, Millennial, Apple, Mojiva the basis of site declaration and Google Display Network and have not been not display revenues, based on verified views from the IAB/PWC Mobile Adspend Advisory Committee • Except for above, reported figures have not been adjusted for organisations that did not participate in survey
    21. 21. Adjustments and like-for-likeAdjustments• Figures are adjusted for double-counting, based on information provided by survey participants• Total advertising revenue is reported on a gross basisLike for like growth reporting• Like-for-like growth rates only include revenues from companies that participated in both 2010 and 2011 studies• We have also included revenues from new participants where 2010 revenues were reported in addition to 2011
    22. 22. Mobile advertising definition Reported Mobile data Banner • Only media spend reported to ensure fair ad comparison to other media including – Display advertising Pre/post – Search roll In SMS • Figures do not include SMS / MMS / MMS production and delivery costs, and other mobile marketing revenues like app production Search Reported Tablet data • Advertising that has been specifically TabletNew! served on a tablet device, accessed via 3G or wifi • Reported separately, not included within the overall Mobile adspend figure
    23. 23. 28 Submitters for 2011iabuk.net/contact
    24. 24. IAB/PWC Mobile Adspend Data 2011iabuk.net/contact
    25. 25. Source: IAB / PwC mobile ad spend survey 2010
    26. 26. Source: IAB / PwC mobile ad spend survey 2011
    27. 27. Source: IAB / PwC mobile ad spend survey 2011
    28. 28. 2011 total mobile ad spend breakdownSource: IAB / PwC mobile ad spend survey 2011
    29. 29. Most formats seeing growth Source: IAB / PwC mobile ad spend survey 2011
    30. 30. 2011 total mobile display breakdownSource: IAB / PwC mobile ad spend survey 2011
    31. 31. 2011 Rich Media Spend *Based on a sample of 15 participants and 2 estimated companies, accounting together forSource: IAB / PwC mobile ad spend survey 2011 c.85% of total standard display revenue
    32. 32. In app revenue outweighs on browser *Based on a sample of 20 participants and 2 estimated companies (from publicly available information), accountingSource: IAB / PwC mobile ad spend survey 2011 together for c.68% of total display revenue
    33. 33. Display revenue growth by quarterSource: IAB / PwC mobile ad spend survey 2011
    34. 34. Industry sector display market shares Top 5 Online Advertisers H1 2011 • Finance 16% • Consumer Goods 15% • Entertainment & the media 12% • Travel & transport 10%Source: IAB / PwC mobile ad spend survey 2011 • Retail 10%
    35. 35. A focus on entertainment Source: IAB / PwC mobile ad spend survey 2011
    36. 36. Change in industry sector displaymarket shares 10-11 Source: IAB / PwC mobile ad spend survey 2011
    37. 37. Tablet display adspend * This figure relates to tablet specific advertising only (ie 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 table dedicated advertisingSource: IAB / PwC mobile ad spend survey 2011 spend
    38. 38. Mobile display advertising growthSource: IAB / PwC mobile ad spend survey 2011
    39. 39. What does this mean for the future?iabuk.net/contact
    40. 40. Mobile‟s growth echoes online 10 years ago 24.6m 25 Monthly mobile audience 250 Monthly online audience Monthly online/mobile audience (MM) £203.2 Online adspend 20 Mobile adspend 200 18.1m £165.7 15.8m Yearly adspend (£MM) £153.1 15 14.5m 150 11.8m 11m 10 8.3m 8.6m 100 £83.0 5 £28.6 £51.0 50 £37.6 £19.4 0 0 1998 1999 2000 2001 2008 2009 2010 2011Source: IAB / PWC Adspend,, comScore Mobilens, ,
    41. 41. Mobile is making its impact on the media pie Mobile, £203m Cinema, £182m Radio, £436m Out of Internet, £4,531 home, £889m m Direct Mail, £1,731m Press, £4,006m TV, £4,150mSource: 2011 estimates from The Advertising Association/Warc Expenditure Report., IAB/ PWC Mobile Adpsend Study 2011
    42. 42. Predictions that mobile cold be worth over £1bn in 2015 FirstPartner UK Mobile Ad Spend 2012 to 2016 1,400 £1185m 1,200 £1088 £962m 1,000 Messaging 800 £727m £ millions Mobile Content 600 Search £449m 400 Display £203m 200 0 copyright FirstPartner 2012 2011 2012 2013 2014 2015 2016 www.firstpartner.netFirstPartner
    43. 43. Will mobile follow the same path as online adspend in coming years? 900.00 Online adspend Mobile adspend £825.1m 800.00 700.00 600.00 500.00 £465.0m 400.00 300.00 £203.2m £153.1m 200.00 £196.7m £165.7m £28.6m £51.0m £83.0m 100.00 £19.4m £37.6m 0.00 1998 1999 2000 2001 2002 2003 2004 2008 2009 2010 2011 2012? 2013? 2014?Source: IAB / PWC Adspend,,
    44. 44. Questionsjon@iabuk.netalex@iabuk.netiabuk.net/contact
    45. 45. DisclaimerThe IAB retained PricewaterhouseCoopers LLP (the UK firm) („PwC‟) to compile the mobile adspend figures collected by the IAB from its members in 2011 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 notconstitute professional advice. You should not act upon the information contained in this publicationwithout obtaining specific professional advice. No representation or warranty (express or implied) isgiven 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.