2. Agenda
The Value of Online Performance Advertising
Presentation from PwC and IAB
Questions
IAB AMC 2013 Steering Group
2013 Programme of activity
Current business update
Around the IAB
AOB
4. Report made possible because of the financial
contributions of…
Company Logo Website
http://www.iabuk.net/
IAB
A4U http://www.affiliates4u.com/
AdPepper http://www.adpepper.co.uk/
Affiliate Window http://uk.affiliatewindow.com/homepage/about-us/
Affilinet http://www.affili.net
BSkyB http://www.sky.com/shop
Commission Junction http://uk.cj.com/
Debenhams http://www.debenhams.com/
Forward Internet Group http://www.forward.co.uk
GOALLOVER http://www.lolagrove.com/
LBi http://www.lbi.com/uk/
Mindshare http://www.mindshareworld.com/
Magnetise Group http://www.magnetisegroup.com/
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
5. Report made possible because of the financial
contributions of…
Company Logo Website
Nectar http://www.nectar.com/eshops
OMG http://www.omgpm.com
Rakuten LinkShare http://www.linkshare.co.uk/
Red Letter Days http://www.redletterdays.co.uk/Home
R.O.EYE http://www.roeye.com/
Savoo.co.uk http://www.savoo.co.uk/
Tradedoubler http://www.tradedoubler.com/
TTH Media http://tenthousandhours.co.uk/
Unanimis Consulting Ltd http://www.unanimis.co.uk/
VoucherCodes.co.uk http://www.vouchercodes.co.uk/
WebGains http://www.webgains.com/public/
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
6. Background
• Existing IAB / PwC Digital Adspend Report captures above
the line advertising spend
→ Affiliate Display £85 million
→ Affiliate Search £38 million
→ Lead Generation £51 million
• Does not represent full range of Online Performance
Marketing revenues
→ Sales Commission generated
→ Set up, management and consultancy fees
→ Technology and data costs
• Sales generated by advertisers not included
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
7. Background
• IAB wanted to accurately represent size and value of the
Online Performance Marketing sector to include
→ Full range of advertiser spend (e.g. sales commission, and
management fees)
→ Advertiser sales generated and ROI
• Work closely with the Affiliate and Lead Generation
Councils
• Commission PwC to create new study
• First time study had been conducted – we welcome your
feedback
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
8. Participants and support from
27 Detailed survey submissions from:
Ad Pepper, Affiliate Window, Affilinet, Commission Junction, Goallover,
Intela, IPT, LeadPoint, Magnetise, Mindshare, MVF Global, Nectar,
Neo@Ogilvy, OMG, Performance Horizon Group, Quidco, Rakuten
Linkshare, ROEye, Savoo, Ten Thousand Hours, Tradedoubler, ValueClick,
WebGains
31 Interviews conducted with:
14 advertisers, 6 publishers, 3 media agencies, 7 survey participants and 1
independent market consultant
Additional support from:
Affiliate Window, Commission Junction, Goallover, LeadPoint, Nectar,
Neo@Ogilvy, Red Letter Days, Ten Thousand Hours
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
9. Headline results
3,000 – 4,000 advertisers
spending
£814 million on
Lead Generation 14%
10,000 publisher
Affiliate Marketing 86%
websites
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
11. Headline results
generating
£9 billion
sales
Lead Generation £1 billion
Affiliate Marketing £8 billion
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
12. Return on investment?
spent =
sales generated
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
13. Online Performance Marketing shows
consistent growth
Average Growth
12% per year (every year)
2008 2009 2010 2011 2012
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
14. The context of
Online Performance Marketing
c.7-9% of UK digital c.6% of the UK internet
marketing spend1 economy2
c.5-6% of UK retail
c.0.6% of UK GDP3
ecommerce4
This is based on Retail only sales in Online
Performance Marketing
Sources/ Notes:
1. This figure is illustrative only. Calculated based on a combination of digital adspend (captured in the IAB/PwC Digital Adspend Study) and other digital marketing spend
(not captured in the IAB/PwC Digital Adspend Study). We have excluded technology and management/ set-up fees from our Online Performance Marketing market size
2. ‘The Connected Kingdom’ (Google/ BCG), ‘The internet Economy in the United Kingdom’ (Vodafone/ A.T.Kearney)
3. Assumed GDP of c.£1.4tn (IMF, Oct 2012)
4. Based on retail only sales in Online Performance Marketing compared to the UK retail ecommerce market value (Verdict Retail, 2012)
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
15. Summary for H1 2012
• Advertisers spent £814m on Online Performance Marketing in 2012
• Generates £9bn of transactions (£11 for each £1 spent)
• 100 million sales transactions and 70 million leads
• 3,000 – 4,000 active advertisers across 10,000 publisher
websites
• Market grew 57% from 2008 – 2012 at average of 12% p.a.
• Different sectors use different techniques when using OPM
• Increased use and further innovation will encourage more growth
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
16. Disclaimer
The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online adspend figures
collected by the IAB from its members in H1 2012 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
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.
The Value of Online Performance Marketing in the UK • A new study by IAB UK and PwC
22. Chatter-sphere
• By 3.30pm @IABUK OPM tweets had received 36 re-tweets
and had been favourited 5 times
• 65 mentions of @IABUK on Twitter (Not including those that
didn’t use the @IABUK Twitter handle)
25. Council structure
Monthly meetings
Chair
IAB Industry
Programmes
Steering Group
n
IAB Resources Working Groups
Regulation Legislation
Research & Standards
Training Research task
Events
…etc
Assembly Training task
Campaign task
…
Quarterly
meetings
iabuk.net/contact
26. 2013 IAB AMC Steering Group
IAB AMC Steering Group Legislation & Standards Committee
Kevin Edwards Affiliate Window Network Kevin Edwards Affiliate Window Network
Florian Gramshammer Commission Junction Network Florian Gramshammer Commission Junction Network
Nathan Salter OMG Network Nathan Salter OMG Network
Dan Cohen TradeDoubler Network Paul Brown Affilinet Network
Ed Lovelock Argos Advertiser Eitan Jankelewitz Sheridans Solicitors
Paul Brown Affilinet Network Douglas Sheard Lbi Agency
Chris Johnson A4u / Existem Publisher Andy Copeland TradeDoubler Network
Gillian Makepeace Debenhams Advertiser Maureen McDonagh Nectar Publisher
Osh Rice STEAK Agency
Stephanie Small Ogilvy Agency
Julian Bazely NonStop Consulting Agency
Irfon Watkins Coull Publisher
David Fieldhouse Linking Mobile Mobile Network
Simon Bird Savoo.com Publisher
James Armstrong vouchercodes.co.uk Publisher
Ricki Jones Ominicom Media Agency
Gavin Male R.O.EYE Agency
Maureen McDonagh Nectar Publisher
Carol Rashti Rakuten Linkshare Network
Elaine Wan LBi Agency
Joshna Patel redLetter Days Advertiser
Phil Raby Criteo Publisher
Richard Lane Mindshare Agency
28. Calendar of meetings
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
24 28 28 25 23 27 25 29 26 24 28
Assembly Steering Steering Assembly Steering Steering Assembly Steering Steering Assembly Steering Christmas
29. AMC Council 2013 activity framework
Q1 Q2 Q3 Q4
J F M A M J J A S O N D
Legislation VoucherCode COC Standards promotion
& Standards Charters promotion
Ethical Publisher Charter Consumer data initiative
Revised Transparency Framework
Data Protection Proposals
Research / Adspend Adspend Advertiser
events / 2012 H2 Affiliate standards w/shop 2013 H1 survey
training OPM launch Affiliate Marketing 101 w/shop Event
OPM seminar OPM 2013
Publications
Customer journeys
/ PR
campaigns Mobile: developer focus
ROI: making sense of the data
Deal shopping: rise of performance brands
Industry Industry Industry
road show road show road show
30. Digital Adspend H2 2012 –
Submissions due!
• Official Advertising Association figures
since 1997
• Collection of H2 2012 adspend
figures has started! This includes
online, mobile and tablets
• Submission deadline is 15th Feb
• Contact the IAB Research
Team to receive an invite or if you
have any questions
mediaspend@iabuk.net
31. Courses Jan-April 2013
• Digital foundation certificate – 25 January, 1st February, 8 February
• Integrated Campaign strategy – 31st January
• Digital sales – 7th February
• Cross Platform Sales – 15th February
• Digital Project management – 18th February
• Mobile & Tablet Marketing certificate – 21st February
• Social Media & Community certificate – 1st March
• Data & Display – 8th March
• Measurement & Optimisation – 18th March
• Digital foundation certificate – 11th April, 18th April, 25th April
• Advanced Mobile – 12th April
• Digital sales – 19th April
32. Workshops Q1 2013
How to deploy Social Media into your B2B marketing strategy: a practical
workshop for advertisers – Monday 28th January
Real Time Advertising Explained: a workshop for advertisers – Wednesday
12th February
How to best Generate Leads Online: created especially for marketing
professionals looking to improve their campaign performance - Wednesday
20th March
All you need to know about Mobile & Tablet: a practical workshop for media
agency account, planning and buying teams – Friday 22nd March
iabuk.net/contact
33. Events – Q1 2013
29th January: Mobile Seminar - The Customer Journey
31st January: Members Open House
5th February: Research Breakfast
13th February: Social Media Debate
26th February: Performance Marketing Seminar
28th February: Gaming Evening
5th March: Mobile Seminar - Measuring Mobile
6th March: Creative Showcase Grand Prix
14th March: Attribution on Trial Seminar
Please contact lizzie@iabuk.net to discuss all sponsorship and speaking opportunities
34. Drinks at The George
• 5.30 onwards
• Drinks
• Snacks
• …and a tight
squeeze!
