This document summarizes the findings of a report on online branding in Europe. It showed that online advertising spending in Europe grew 4.5% in 2009 to €14.7 billion, outpacing other media but slowing from 2008. Search advertising strengthened its lead with 46% of total spend and 10.8% growth, while display grew 0.3%. The top 6 countries—UK, Germany, France, Italy, Netherlands, and Spain—accounted for 76% of total online advertising spending in Europe.

1. BRANDING ONLINE: THE TIME IS NOW
2‐3 June 2010
Ad Ex 2009
Internet advertising spending in
Europe

2. BRANDING ONLINE: THE TIME IS NOW
2‐3 June 2010
Agenda
• Topline figures
• Methodology
• Key trends

3. BRANDING ONLINE: THE TIME IS NOW
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Topline Figures

4. BRANDING ONLINE: THE TIME IS NOW
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The Results
14.7 billion euros

5. BRANDING ONLINE: THE TIME IS NOW
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Key facts and figures
• €14.7bn market compared to €16.2bn in the US
• Growing +4.5% like‐for‐like, a slow‐down from +20% in 2008
• But still outperforming all other media categories
• Internet now contributes 18% to all media ad spend

6. BRANDING ONLINE: THE TIME IS NOW
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A like-for-like growth rate of 4.5%
• At constant country sample (19 countries of 2008)
• At constant exchange rate
Internet adspend in €bn
16 or-like
)
14.70
ike-f
+4.5% (l
14 13.06
12
10
8
6
4
2
0
2008 2009

7. BRANDING ONLINE: THE TIME IS NOW
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Europe catches up with the US as the US market
declined in 2009
Total online ad spend Europe vs. USA (€bn)
18 16.83 16.26
16 14.70
14 13.06
12
10
Europe
8
USA
6
4
2
0
2008 2009
Source for USA data: IAB/PWC

8. BRANDING ONLINE: THE TIME IS NOW
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Methodology

9. BRANDING ONLINE: THE TIME IS NOW
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Our European coverage now includes 23 countries
Four new countries added in 2009
• Austria • Netherlands
• Belgium • Norway
• Bulgaria* • Poland
• Croatia • Russia*
• Denmark • Romania
• Finland • Slovenia
• France • Slovakia*
• Germany • Spain
• Greece • Sweden
• Hungary • Switzerland*
• Italy • Turkey
• UK
*New in 2009

10. BRANDING ONLINE: THE TIME IS NOW
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Comparing “apples to apples”
NET RATECARD
GROSS
Revenue Billed Campaigns x
Revenue Billed No Agency commissions Ratecard

11. BRANDING ONLINE: THE TIME IS NOW
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Key challenges to ensure comparability
• Fair Gross value
• Category representation
• Display
• Search
• Classifieds & Directories
• Other
• Exchange rate adjustments at a constant rate

12. BRANDING ONLINE: THE TIME IS NOW
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Key Trends

13. BRANDING ONLINE: THE TIME IS NOW
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Formats: Search strengthens lead with 46% share
2009 internet adspend by segment
1%
30%
Display
46% Classifieds/Directories
Paid Search
Other
23%

14. BRANDING ONLINE: THE TIME IS NOW
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Formats: Search drives growth during recession
Growth of formats in 2009 (like-for-like)
12% 10.8%
10%
8%
6%
4.5%
4%
2%
0.3%
0%
Display Classifieds Search Total
-2%
-1.4%
-4%
Note: Like-for-like growth is calculated excluding the new submissions (Bulgaria, Slovakia,
Switzerland and Russia) for which no data was available in 2008.

15. BRANDING ONLINE: THE TIME IS NOW
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Formats: Search nears €7bn
Internet adspend in €m
8,000
7,000 6,733
6,000
5,000 4,366
4,000 3,420
3,000
2,000
1,000 182
0
2009
Display Classifieds/Directories Search Other

16. BRANDING ONLINE: THE TIME IS NOW
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Markets: The top 6 countries make up 76% of the total
Online ad spend by country 2008 vs. 2009 (€m)
UK € 4,011
€ 3,834
Germany € 3,092
€ 2,939
France € 1,760
€ 1,731
Italy € 849
€ 798
Netherlands € 815
€ 800
2009
Spain € 683
€ 635 2008
Russia € 514
Sweden € 467
€ 455
Norway € 401
€ 390
Denmark € 384
€ 374
€0 € 500 € 1,000 € 1,500 € 2,000 € 2,500 € 3,000 € 3,500 € 4,000 € 4,500

17. BRANDING ONLINE: THE TIME IS NOW
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Markets: contrasting trends among emerging markets
Total growth by country from 2008 to 2009
20% 49%
15% 14%
13%
12%
10%
7% 7% 6%
5%
5% 4%
5%
3%
3%
2% 2% 2% 2% 1%
0% -3% -5%
Poland
Greece
Austria
Turkey
Spain
Hungary
Italy
Germany
Belgium
Finland
UK
Sweden
France
Netherlands
Slovenia
Norway
Croatia
Romania
Denmark
-5%

18. BRANDING ONLINE: THE TIME IS NOW
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Markets: contrasting trends among emerging markets
Online adspend growth 2009
+10% and above
+5% to +10%
0% to +5%
-5% to 0%

19. BRANDING ONLINE: THE TIME IS NOW
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Market: Growth and maturity
48%
16% Greece
Austria
14%
Poland
12% Turkey
Year-on-year growth 2009
10%
Finland Germany
Spain
8%
Hungary UK
Sweden
Italy
6%
Netherlands
4%
Belgium Norway
Slovenia
2%
France
0%
Denmark
0% 5% 10% 15% 20% 25% 30% 35%
-2% Croatia Online Market Share*
-4% Romania
Slovakia
-6%
*Calculated using Screen Digest Advertising Intelligence data which
incorporates TV, print, radio, outdoor and cinema advertising

20. BRANDING ONLINE: THE TIME IS NOW
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Thank you
• For more information please contact Catherine Borrel,
research@iabeurope.eu