The IAB report on online ad-spend in the Netherlands found that: - The Dutch online advertising market was over €1 billion in 2011, a 12% increase from 2010 despite economic challenges. - Search advertising remains dominant, earning half of total online ad revenue. - Growth is expected to slow to 7.7% in 2012 as the economy continues to impact advertiser confidence. - Automated trading technologies are increasing and handled 36% of total display ad revenue in 2011.

1. interactiv
advertisin
bureau
IAB report on
online ad-spend
2011
March 2012

2. Introduction and
summary
IAB report on online ad-spend 2011 2

3. Introduction
This is the second year IAB and Deloitte are publishing the online advertising spend
report for The Netherlands. The 2010 FY and 2011 H1 reports received positive
response from the community and the current edition – which covers 2011 FY – has
yet greater participation from key industry partners. Joris van Heukelom Roel van Rijsewijk
IAB | Chairman Deloitte Online Business Innovation
This years edition relies on data supplied by a record 43 companies, which has “It is quite clear that Digital media “2011 has been a great year for online
allowed us to obtain a more accurate view of the market. We also conducted is becoming a grown up industry. advertising, despite turbulent economic
validation discussions on the preliminary results with a number of parties in the Nevertheless we keep showing double conditions and declining consumer
market. digit growth. This, next to the fact confidence in the last six months. These
that the Tablet Ecosystem seems conditions did have an effect on the
Based on the additional input received, we have had to restate the 2010 figures very promising, both for publishers expectations of the respondents for
slightly downwards, due to better reporting from affiliate marketing players. and advertisers, provides a strong 2012; they do not see the double digit
Further, based on input from survey participants we have made some changes in foundation for further expansion growth rates of last year repeated in
the categories and set up of the study. of Digital within the total Media- 2012. To maintain current growth rates
ecosystem in the coming years.” in 2012, Dutch online publishers and
networks will have to make the most
out of the possibilities of automated
trading platforms, be able to compete
with TV for brand advertising budgets
and effectively promote in-app
advertising on tablets with advertisers.“
Emile van den Berg
IAB | Research & Standards
“Once more, thanks to even more
participants than last time, Deloitte
managed to pull together a complete
and comprehensive report overviewing
the ad spends in our industry.”
IAB report on online ad-spend 2011 3

4. Our methodology
Collection Deloitte collected data covering 79% of the market*
Missing participants’ data estimated based on previous figures, desk research,
Estimation expert opinions, industry databases and regression modeling
Conversation Initial findings verified with industry experts, media buyers, and selected publishers
Validation Final findings cross-referenced and validated with respondents
Publication All findings presented to the IAB and industry participants
* Note: Based on STIR market estimate
IAB report on online ad-spend 2011 4

5. Executive summary
Despite slow economic growth and
declining consumer confidence, the Dutch
online advertising market was over €1 b
in 2011, a year on year uplift of 12%
Gagandeep Sethi
Ad revenues received by Dutch publishers However, the lagging economy has Deloitte Consulting | Strategy
through their mobile websites and in-app an effect on the outlook for 2012;
advertising on smartphones and tablets is participants expect growth to slow to “The growth of the online advertising
still very small 7.7% growth for 2012 market in 2010 has continued for a
large part throughout 2011”
Eric Snelleman
GroupM | Head of Digital Trading
“We are pleased with this IAB report
as it confirms a growth that
is in line with our annual global
media forecast. A growth that still
outperforms other media, however not
growing as fast as before.
To accelerate growth we think the
industry should now make sure
Automated trading technologies are Search is still dominant in the online marketing driven thinking is fully
on the rise with 36% of total display advertising market earning half of total merged with technology solutions to
revenue generated through some kind ad spend. Display is where the Dutch further drive, enhance and develop
of non-guaranteed pricing mechanism publishers and networks need to get digital advertising.”
their fair share
IAB report on online ad-spend 2011 5

6. Background
IAB report on online ad-spend 2011 6

7. Dutch economy
The Dutch economy is expected to experience slow growth over the next two years.
Comments Dutch GDP projections (€b)
• The economy seems to keep an easy 650 6%
pace as the Dutch GDP is expected 625
to grow at a steady 1.4% for the 3%
coming two years 600
576 0%
575 567
• Following the sharp recovery in 551 560
550 542
2010 in the advertising market, -3%
future growth is expected to be 525
more in line with GDP -6%
500
475 -9%
450
-12%
425
400 -15%
2009 2010 2011 2012F 2013F
GDP
GDP Growth rate YoY
Total advertising growth rate YoY
Note: Real GDP based on constant prices
Source: IMF, Zenith optimedia December 2011,
SPOT TV Jaarrapport 2011, PwC Entertainment
& Media Outlook 2011-2015, Radio Advies
Bureau, Deloitte analysis
IAB report on online ad-spend 2011 7

8. Dutch advertising market
TV and online are expected to grow the most in both absolute and relative terms.
Comments Estimated advertising market (€m)
• Expected growth for the total advertising market in
5,000
The Netherlands in 2012 is 2.1%
4,095 4,183 6
• The online advertising market is expected to become 4,028 5 5
4,000 158 165
the largest market in 2012 150 235
230 233
• Newspapers and magazines are expected to continue 484 452
their steady decline 547
3,000
• Radio is expected to remain stable through 2012 1,091
965 1,059
• Outdoor is expected to grow steadily
2,000
1,088 1,045
1,177
1,000
1,068 1,189
954
0
Note: TV excludes Online TV Advertising
Source: Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, PwC
2010 2011 +2.1%
2012F
Entertainment & Media Outlook 2011-2015, Radio Advies Bureau, Company Cinema Radio TV Internet
annual reports, Deloitte analysis
Outdoor Magazines Newspapers
IAB report on online ad-spend 2011 8

9. Time spend
As consumers spend more time online, advertisers are expected to respond similarly to
rebalance the value of the different media types.
NL Advertising Trends Time spend vs Share of Advertising spend (2011)*
Newspapers/Magazines
Indicative direction and speed
Print still has a dominant position in the advertising market, with a relatively large 50
share compared to the total time spent on this media. Forecasts show a steady
decline of advertising income for newspapers and magazines. 45
Share of Advertising spend (%)
40
Radio
Traditional radio is expected to decline in its share of total timespend, but will 35 Newspapers
be compensated by online music services such as Spotify and Pandora. Upside
potential in SoA is limited due to the nature of the medium and is expected to 30
stabilize. Internet
25 TV
TV
Linear TV in the Netherlands is likely to have a strong year due to major media 20
events such as the Olympics and European Championships; major advertisers may Magazines
15
increase spend on TV advertising as cost per reach is still relatively cheap.
10
Internet
Time spent online will increase over the next few years with video and social being 5 Radio
the big drivers. It is expected that advertising budgets will shift in line with this
increase in time spend. 0
0 5 10 15 20 25 30 35 40 45 50
Time spend (%)
Note: Share of Advertising based on collected 2011 data; Time spend based on most recent available
findings from SPOT
Source: Trends tijdsbesteding 2010 SPOT, Zenith optimedia December 2011, SPOT TV Jaarrapport * efinitions: Share of Advertising spend is the ratio of advertising revenue of a particular media type to the sum of revenue of all selected media types.
D
2011, Radio Advies Bureau, Deloitte analysis Time spend is the ratio of time spend on a particular media type to the sum of time spend on all selected media types.
IAB report on online ad-spend 2011 9

10. Consumer confidence
The decline in consumer confidence has had little direct impact on online advertising
spend sofar.
Display advertising revenue vs. consumer confidence
€m
40
40 0
31 31
28 26 27 29 28
30 25 24 24 23 -10
20 -20
10 -30
0 -40
Jan Febr Mar Apr May June July Aug Sept Oct Nov Dec
2011
€m
40 35 0
28 29
30 26 25 25 26 -10
22 22 23 21 20
20 -20
10 -30
0 -40
Jan Febr Mar Apr May June July Aug Sept Oct Nov Dec
2010
Consumer confidence Advertising income
Source: CBS, Deloitte analysis
IAB report on online ad-spend 2011 10

11. 2011 Results
IAB report on online ad-spend 2011 11

12. Online advertising market
The Dutch online advertising market was almost €1.1b in 2011, a year on year uplift
of 12%.
Frank Goebbels Revenue by advertising category (€m)
Omnicom | Strategy Development
Director
“Adwords costs have increased 202
tremendously due to high bidding; 192 Search
display stands to benefit in the short
term from higher prices on search Display
keywords” 2011
2010
€1,068 Classifieds, directories
€954m 460
530 and listings
Hein Asser 336
Magna Global | Contracting Director
302
“Advertisers are buying more but
spending relatively less on display
advertising leading to limited growth in
the segment”
+12%
* Search revenues is our estimation of all revenue of Google and its competitors in The Netherlands
Note: Display revenue includes some double counting from search related revenues; Classifieds,
directories listings estimated based on a limited number of data points; Display and Classifieds,
directories listings data for 2010 restated based on revised revenues figures from respondents and
additional data from new respondents
Source: Survey respondents, Annual reports; Deloitte analysis
IAB report on online ad-spend 2011 12

13. Details display advertising
More than half of display advertising revenues come from traditional embedded
formats.
Display advertising breakdown by format
Other
12%
Interruptive
formats
8%
31%
2011 Display formats
Video 9%
50% Embedded
61% formats
10%
Textlinks
19% (incl. AdSense)
Note: Embedded formats are for example Display Classifieds, Search
traditional banners and skyscrapers directories and
Source: Survey respondents, Deloitte analysis listings
IAB report on online ad-spend 2011 13

14. Display revenue per medium
Mobile websites and in-app advertising is small; within apps, tablets have a 36%
revenue share while there are 6.4 times more smart phone devices then tablets.
Display advertising revenue per medium Number of devices
7
Joris van Heukelom 6.4
IAB | Chairman
6
“On the one hand we can conclude
3%
that publishing for tablets which is 5
dominated by Apple is still in the
Devices (x1m)
beginning of its lifetime-cycle. But 9% 4
the promise is huge. If you focus on
the advertising-value of publishing 36%
on tablet you only can conclude that 3
it is remarkably high. I assume that Mediums In-app
next years’ adspend study will show 2
remarkable growth in this category.”
88% 64%
1.0
1
0
Website/browser Smartphone Smartphones
E-mail Tablets
Note: In-app only includes revenues from Tablet
survey respondents and excludes revenues from In-app / Mobile website
players such as Google and Apple
Source: Survey respondents, Emerce.nl,
Deloitte analysis
IAB report on online ad-spend 2011 14

15. Power ratio display advertising
Publishers vary in reach and performance in capturing advertising spend with market
leaders capturing the most relative value through niche focus.
Comments Power ratio display advertising
12.4
• Share of Advertising spend is the
ratio of respondent revenue to Low
12
the sum of revenue of included Average
respondents High SoA / SoV
• Share of Visitors is the ratio of
10
respondent unique visitors to the
sum of unique visitors of included
respondents
8
• The power ratio is calculated by
6.0
dividing Share of Advertising spend
by Share of Visitors
6
• Publishers with a specific target
audience received a high advertising
share relative to their visitors’ share 2.9 3.0
4
• 4 publishers have an extraordinary
share of advertising compared to 1.8 1.9
their reach 1.0 1.1 1.2
2
0.3 0.5 0.6 0.7 0.8
• 6 publishers have below average
1.0
advertising performance compared
to their reach
0
1 2 1 1 1 1 2 2 1 1 1 1 1 1
Number of publishers
Note: Unique visitors are according to STIR
definitions of visitors over 13 years of age
Source: STIR 2011, Survey respondents,
Deloitte analysis
IAB report on online ad-spend 2011 15

16. Industries
Consumer goods takes position as top spender amongst publishers while Financial
services spending moves to a second position.
Top five industries by revenue share
2011 2010 Change
Consumer goods 17% Consumer goods 10% 7%
Financial services 14% Financial services 9% 5%
Telecom 10% Telecom 9% 1%
Online retail 9% Online retail 3% 6%
Automotive 7% Automotive 11% -4%
Travel 7% Travel 4% 3%
Hardware electronics 4% Hardware electronics 5% -1%
Public sector 3% Public sector 3% 0%
Personal care 3%
ICT Services 2%
Fashion 2%
Retail 2% Retail 2% 0%
Free time 2% Free time 4% -2%
Note: Excluding classifieds, directories
Energy 1% Energy 2% -1%
listings, search and industry category other;
2011 included 3 new categories – ICT Services,
Fashion and Personal care; 2010 shares updated
to include additional respondents
Source: Survey respondents, Deloitte analysis
IAB report on online ad-spend 2011 16

17. Revenue per payment model
Roel van Rijsewijk
The CPM payment model maintains a leading position as the preferred revenue model Deloitte Online Business Innovation
for display advertising. “As we move towards more automated
trading, CPM is becoming the default
currency.”
Display advertising revenue per payment model
51% 19%
CPM CPS
9% 2%
CPC Other
7% 12%
CPL Fixed Fee
Source: Survey respondents, Deloitte analysis
IAB report on online ad-spend 2011 17

18. Sales mechanism and channels
A significant portion of sales is not realized through traditional ratecards but through
using an automated trading mechanism.
Mark Stockx Display advertising revenue by price mechanism Revenue per channel
Telegraaf Media Nederland
Sales Director Digitaal
“2012 is going to be the year where
automated trading really becomes part
of a total integrated marketing solution.
Automated trading has developed far 2%
11%
from remnant inventory and moves to 12%
premium partnership solutions ranging 36%
from awareness to performance and
ultimately delivering true ROI for our
2011 2011 45% Third parties
clients. The publishers that really gets
19%
the ultimate mix between branded 44%
content, premium formats inventory 67%
64%
and performance driven solutions is up
for a great year.”
Guaranteed Direct sales Automated trading agencies
Note: Guaranteed revenues defined as sales
from upfront agreed upon price, for example Non-guaranteed Media agencies Ad network / saleshouse
based on a ratecard. Non-guaranteed revenues
Third parties
resulting from sales without an upfront agreed Agency trading desks
upon price, for example exchange traded
inventory. Ad network / ad exchange
Source: Survey respondents, Deloitte analysis
IAB report on online ad-spend 2011 18

19. Affiliate marketing
Of the total reported online advertising spend in 2011, €117m was generated through
affiliate networks.
Bas Rogaar Spend on affiliate marketing (€m) Affiliate revenue by publisher model
Affilinet
Taskforce Affiliate marketing
4% 7%
3%
“The historical participation of all
117m
relevant market players to the IAB
12%
– Deloitte ad-spend study will have
a positive impact on the further
development and transparency of this
highly innovative and dynamic sector Publisher model 6%
within the online marketing landscape.” 48%
20%
Search (SEO/SEA) Comparison sites Cashback and loyalty Advertising networks
Social Media Coupon codes Topic publishers
Note: Division of revenue by publisher model
based on data from an estimated 50% of the
total market
Source: Survey respondents; Jochem Vroom
Affiliateblog/Imbull BV; Deloitte analysis
IAB report on online ad-spend 2011 19

20. Outlook
IAB report on online ad-spend 2011 20

21. Revenue growth expectations
Respondents predict a 7.7% market growth in 2012 weighted by respondent revenues.
Gagandeep Sethi Survey respondents growth expectations
Deloitte Consulting | Strategy
Low
“Companies expect a weighted growth Average
rate of 7,7% in 2012; a clear downward High
revision of expectations voiced in H1
2011 of 20%.”
Weighted average growth expectation*
2012 expectations
2% 4% 5% 7,7% 8% 10% 12% 15% 18% 20% 45% 50%
number of
respondents
1 1 3 1 2 13 2 3 1 3 1 1
(total of 32)
* Growth expectation calculated by weighting
responses with company revenue
Source: Survey respondents; Deloitte analysis
IAB report on online ad-spend 2011 21

22. Sector growth expectations vs actual results
Online retail and Consumer goods were the sectors that have grown
most in online ad spend in 2011, as expected by the participants in
the last survey.
Expectation of growth in 2011 by industry
3% 3%
2% 2% 2%
Online retail Consumer Travel Retail Financial
goods services
Actual change in share of total market by industry in 2011
8%
6%
4%
3% 0%
Online retail Consumer Travel Retail Financial
Source: Survey respondents, Deloitte analysis
goods services
IAB report on online ad-spend 2011 22

23. Growth expectations 2012
For 2012, CPM remains the main payment model and is expected to grow the most.
Retail is expected to grow the most in spend. Expectations of growth of in-app
advertising are limited.
Growth expectations for 2012
CPM 14% Retail 9% Website 13%
CPS 6% Online retail 4% Mobile website 9%
Fixed Fee 4% Fashion 3% In-app 3%
CPC 3% Consumer Goods 2% E-mail 2%
CPL 3% Telecom 2%
Payment model Industry Medium
Source: Survey respondents, Deloitte analysis
IAB report on online ad-spend 2011 23

24. Revenue forecast
Roel van Rijsewijk
Display and classifieds, directories and listings revenues are expected Deloitte Online Business Innovation
to grow from €538m to €580m in 2012. “The growth rate in 2012 for display
advertising could be more than
expected, driven by a slight shift away
Display and classifieds forecast 2012 (€m) from keyword advertising.”
210
192 202
2012F Display
2010 2011
€580
€494 €538 Classifieds
302 336 370
Source: Survents respondents, Deloitte analysis
IAB report on online ad-spend 2011 24

25. Appendix
IAB report on online ad-spend 2011 25

26. Methodology
Online advertising market Search and classifieds estimates
• Over 40 companies reported their data based on the questionnaire. • Due to limited availability of company data we had to estimate the market size
for search and classifieds based on market data
• The data gathered comprises 79% of total reach (based on STIR)
• Together with the taskforce search from the IAB we defined the search market
• The figures are drawn up on the basis of site declaration and have not been and estimated the market size
audited
• Google regulations forbid commenting on our search market estimates
• Wherever needed we have used tools such as regression analysis to make
estimations regarding total market • The classified market is based on public available market estimates. Due to
limited data points, current classified market size could not be verified
• Based on the information provided by survey participants, figures have been
adjusted for double counting when possible
IAB report on online ad-spend 2011 26

27. Definitions
Categories Payment models
• Display • Fixed Fee: Payment model based on a fixed fee
- Embedded formats (banners, buttons, skyscrapers etc)
- Interruptive formats (rich media, over the page, page take-over etc) • CPM: Cost per Mille = Payment model where the advertiser pays per thousand
- Tekstlinks (incl. AdSense) viewers
- Video (pre-/mid-/ postroll)
- Other uncategorized display advertising • CPC: Cost per Click = Payment model based on the number of clicks on an
advertisement
• Online classifieds, directories listings
- B2B • CPL: Cost per Lead = Payment model that is based on the number of leads
- B2C generated. A lead is an online conversion where the consumer shares its contact
- C2C details and indicates to be interested
• CPS: Cost per Sale = Payment model based on the number of sales generated
IAB report on online ad-spend 2011 27

28. List of survey participants
Name of company Name of company
1 Adfab 23 NDC Mediagroep
2 Adfactor 24 NRC Media
3 Adlantic 25 OMG/Netdirect
4 Admitter Nederland 26 RTL Nederland
5 Affiliate4You 27 Sanoma Media
6 Affilinet Nederland 28 SBS
7 Bannerconnect 29 Ster
8 Beslist.nl 30 Sulake
9 Cleafs 31 TAPPS
10 ClickDistrict 32 Telegraaf Media Groep
11 Daisycon 33 Tibaco
12 De Persgroep Advertising 34 TradeDoubler
13 Digimo Media 35 Viacom International Media Networks Northern Europe
14 FD Mediagroep 36 Videostrip
15 Funda Real Estate 37 VNU Media
16 HDC Media 38 WebAds Interactive Advertising
17 Hi-media Nederland 39 Koninklijke Wegener
18 IDG 40 YD
19 Kluwer Media 41 Young Advertising
20 Lumata 42 Zanox M4N
21 Marktplaats Media 43 Zoom.in
22 Microsoft
IAB report on online ad-spend 2011 28

29. Data sources
Company / Organization Website
1 Affiliate blog www.affiliateblog.nl
2 CBS www.cbs.nl
3 Comscore www.comscore.com
4 Emerce www.emerce.nl
5 Forrester www.forrester.com
6 Google www.google.com
7 Imbull www.imbull.nl
8 IMF www.imf.org
9 PwC www.pwc.nl
10 Radio Advies Bureau www.rab.fm
11 SPOT www.spot.nl
12 STIR www.stir.nl
13 Zenith Optimedia www.zenithoptimedia.com
IAB report on online ad-spend 2011 29

30. Contact details
For questions concerning this research feel free to contact:
Roel van Rijsewijk Lauren van der Heijden
Deloitte Online Business Innovation IAB Nederland
Tel: +31 (0)6 52 615 087 Tel: +31 (0)85 401 0802
Email: rvanrijsewijk@deloitte.nl Email: lauren@iab.nl
Roel is a Director with the Risk Services practice from Deloitte with more than Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB
10 years of experience in risk consulting for companies in the Technology, Media commissioned research and assisting IAB members with their research projects.
Telecommunications (TMT) industry. Roel leads one of Deloitte’s main innovation Also responsible for shaping the IAB knowledge base so that it meets members’
projects on ethics and trust in a digital world and is co-founder of Deloitte’s Online needs moving forward.
Business Innovation group.
Gagandeep Sethi
Deloitte Consulting | Strategy
Tel: +31 (0)6 13 127 167
Email: gasethi@deloitte.nl
Gagandeep Sethi is a Manager in the Corporate Strategy practice of Deloitte
Consulting Netherlands with more than 10 years of experience within the
Technology, Media Telecommunications (TMT) industry.
IAB report on online ad-spend 2011 30

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