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IAB adex Benchmark 2015 - full year

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IAB adex Benchmark 2015 - full year

  1. 1. AdEx Benchmark 2015 Interact Presentation 11th May 2016 Daniel Knapp, IHS Eleni Marouli, IHS
  2. 2. About the study
  3. 3. A meta analysis of online ad spend in Europe RATECARD Campaigns x Ratecard GROSS Revenue Billed NET Revenue Billed No Agency commissions
  4. 4. Submissions from 27 countries in Europe • Austria • Belarus • Belgium • Bulgaria • Czech Republic • Croatia • Denmark • Finland • France • Germany • Greece* • Hungary • Ireland • Italy • Netherlands • Norway • Poland • Russia • Romania* • Serbia • Slovakia • Slovenia • Spain • Sweden • Switzerland • Turkey • UK *Have not submitted in time for Interact, but will be included in the final report
  5. 5. Big picture and context
  6. 6. The value of online advertising in 2015 €36.2bn
  7. 7. Acceleration in European GDP growth in 2015 boosts the online ad market -8% -6% -4% -2% 0% 2% 4% 6% 8% 2004-Q1 2004-Q2 2004-Q3 2004-Q4 2005-Q1 2005-Q2 2005-Q3 2005-Q4 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 Eurozone France Italy Germany Spain GDP growth in Eurozone (%) Source: IHS © 2016 IHS
  8. 8. €30bn net addition to the online ad market in 10 years… 6.6 9.2 14.5 15.8 18.8 21.9 24.4 28.6 32.1 36.2 0 5 10 15 20 25 30 35 40 2006 2007 2008 2009 2010 2011 2012 2013 2015 2015 Total online advertising spend (€bn) Source: IAB Europe for 2011-2015; 2006-2011 retropolated based on IHS growth rates CAGR (2006-2015): +20.5% €30bn
  9. 9. …in an otherwise flat media advertising market 0 20 40 60 80 100 120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Digital Traditional Ad spend by category in Europe in 2015 (€bn) Source: IAB Europe for online and IHS for all other media © 2016 IHS
  10. 10. Double-digit growth throughout excluding blip in 2009 39.0% 58.6% 8.9% 18.6% 16.5% 11.5% 11.9% 11.6% 13.1% 0% 10% 20% 30% 40% 50% 60% 70% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Online advertising year-on-year growth (%) Source: IAB Europe and IHS
  11. 11. Online lifts a declining media advertising market in 2015 1.0% -28.2% -3.9% 12.9% 15.9% 13.1% 4.8% -19.5% 1.1% -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% Western Europe CEE Total Europe Total excluding online Online Total 2015: advertising year-on-year growth (%) Source: IAB Europe for online and IHS for all other media
  12. 12. Online overtakes TV to become the largest advertising medium in Europe 0.7 5.2 7.5 25.5 33.3 36.2 0 5 10 15 20 25 30 35 40 Cinema Radio OOH Print TV Online 2015 2014 Ad spend by category in Europe in 2014 and 2015 (€bn) Source: IAB Europe for online and IHS for all other media
  13. 13. Markets
  14. 14. Top three markets still account for the lion’s share of the European online advertising market 60.4% 70.5% 78.4% 86.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Top 3 Top 5 Top 7 Top 10 2012 2013 2014 2015 Share of European online ad revenue by market (%) Source: IAB Europe and IHS
  15. 15. 824 829 1,234 1,310 1,541 1,585 2,085 4,227 5,794 11,826 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Switzerland Denmark Spain Sweden Russia Netherlands Italy France Germany UK 2015 2014 Top 10: total by country in 2014 and 2015 (€m) Source: IAB Europe and IHS Top 10 online ad markets at a glance
  16. 16. Strong growth across Europe in 2015… 29.0% 22.3% 21.8% 21.6% 20.4% 20.0% 19.7% 18.7% 18.2% 18.0% 16.9% 15.3% 14.2% 13.7% 13.3% 13.1% 12.8% 11.2% 10.4% 9.7% 8.4% 8.0% 7.6% 7.5% 6.8% 5.6% 0% 5% 10% 15% 20% 25% 30% 35% Ireland Bulgaria Poland Slovenia Slovakia Sweden Turkey Switzerland Croatia Spain UK Norway Russia Hungary Denmark Europe Austria Serbia Italy Belgium Netherlands Finland France Germany Belarus CzechRepublic Online advertising year-on-year growth in 2015 (%) Source: IAB Europe and IHS
  17. 17. …at all levels of market maturity and market size Belgium Bulgaria Croatia Czech Republic Denmark FinlandFranceGermany Hungary Ireland Italy Netherlands Norway Poland Russia Serbia Slovenia Spain Austria Belarus Sweden SwitzerlandTurkey UK -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% - 20 40 60 80 100 120 140 160 180 200 Source: IAB Europe and IHS Online ad spend per capita (€m)
  18. 18. Western Europe: a snapshot 38.0% 15.7% 45.9% 0.4% Display Classifieds & Directories Paid-for-search Other Western Europe: share of formats in 2015 Source: IAB Europe and IHS 2014 (€bn) 2015 (€bn) Like-for-like growth (%) Share of Total (%) Display 10.5 12.3 17.7% 38.0% of which video 1.5 2.1 37.3% 16.8%* of which mobile 2.1 3.4 60.0% 10.9%* Classifieds & Directories 4.8 5.1 4.8% 15.7% Paid-for-search 13.3 14.9 11.9% 45.9% of which mobile 2.1 3.3 55.4% 12.0%* Total 28.7 32.5 12.9% 100.0%
  19. 19. CEE: a snapshot 40.8% 5.4% 53.8% 0.0% Display Classifieds & Directories Paid-for-search Other CEE: share of formats in 2015 Source: IAB Europe and IHS 2014 (€bn) 2015 (€bn) Like-for-like growth (%) Share of Total (%) Display 1.3 1.5 14.2% 40.8% of which video 0.2 0.2 25.4% 16.2%* of which mobile 0.1 0.2 70.1% 11.0%* Classifieds & Directories 0.2 0.2 3.3% 5.4% Paid-for-search 1.7 2.0 17.2% 53.8% of which mobile 0.03 0.5 208.6% 27.6%* Total 3.2 3.7 15.1% 100.0%
  20. 20. • Programmatic and automation • Proliferation of e- and m-commerce • Rise of online video consumption • Growth in premium video inventory – attracting TV budgets • Improvement in ad quality • Shift to a mobile-first advertiser mentality • Social media advertising • The emergence of native advertising • Ad blocking • Viewability and ad fraud • Misuse of data • Plateau of desktop advertising – adapting desktop ads to mobile • High production costs • Structural barriers • Macroeconomic environment and adverse political conditions Drivers and hurdles in 2015 as reported by local IABs
  21. 21. Formats
  22. 22. Display continues to drive online advertising growth 14.9% 3.6% 13.0% 11.9% 15.2% 5.8% 10.8% 11.6% 17.4% 4.9% 12.6% 13.1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Display Classifieds & Directories Paid-for-search Total 2013 2014 2015 Year-on-year growth (%) Source: IAB Europe and IHS
  23. 23. Display outpaces other formats to further increase its share 47.5% 48.2% 43.8% 32.2% 31.0% 32.7% 32.4% 33.8% 36.7% 38.3% 18.3% 14.9% 18.9% 19.8% 20.7% 19.6% 18.5% 16.8% 15.6% 14.6% 34.1% 36.6% 36.6% 47.3% 48.0% 47.1% 48.8% 49.2% 46.7% 46.7% 0% 20% 40% 60% 80% 100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Display Classifieds & Directories Paid-for-search Other Format shares of online (%) Source: IAB Europe and IHS
  24. 24. Mobile drives online ad market growth in Europe in 2015 4.9% 12.6% 13.1% 17.4% 36.0% 57.4% 60.4% 0% 10% 20% 30% 40% 50% 60% 70% Classifieds & Directories Paid-for-search Total Display Video Mobile Search Mobile Display Year-on-year growth in 2015 (%) Source: IAB Europe and IHS
  25. 25. Half of European display markets grow above 20%, three above 30% 43.5% 38.1% 32.5% 25.0% 24.5% 23.3% 22.6% 22.6% 22.6% 22.3% 21.9% 21.5% 17.4% 16.1% 15.8% 14.9% 14.3% 11.1% 10.8% 9.7% 9.6% 9.6% 7.7% 6.2% -2.1% -19.6% -30% -20% -10% 0% 10% 20% 30% 40% 50% Slovenia Ireland Poland Croatia UK Spain Bulgaria Turkey Norway Slovakia Belgium Switzerland Europe Italy France Sweden Austria Finland Hungary Denmark Serbia Germany Czech Republic Netherlands Russia Belarus Display year-on-year growth (%) Source: IAB Europe and IHS 12 of the 25 IABs
  26. 26. Video is an increasingly important part of display 32.1% 28.3% 25.1% 20.0% 19.8% 18.1% 18.0% 18.0% 16.8% 16.7% 16.0% 15.9% 15.3% 15.1% 14.7% 14.4% 12.8% 10.1% 8.7% 8.5% 8.4% 8.4% 8.1% 5.5% 0% 5% 10% 15% 20% 25% 30% 35% Bulgaria Russia Switzerland Italy Sweden Ireland Belgium UK Netherlands Europe France Spain Poland Germany Croatia Austria Turkey Finland Denmark Hungary CzechRepublic Norway Slovenia Belarus Video share of Display in 2015 (%) Source: IAB Europe and IHS
  27. 27. Mobile accounts for a quarter of all European display ad spend, approaching 50% in most advanced markets43.1% 37.5% 36.8% 33.0% 29.5% 27.5% 26.1% 25.4% 20.9% 20.6% 19.6% 10.9% 9.6% 8.5% 8.5% 8.0% 7.9% 7.3% 5.1% 4.4% 2.9% 2.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% UK Ireland Norway Italy Netherlands Finland Sweden Europe France Poland Hungary Germany Russia CzechRepublic Denmark Serbia Austria Spain Croatia Turkey Belarus Bulgaria 2012 2013 2014 2015 Mobile share of Display (%) Source: IAB Europe and IHS
  28. 28. Mobile outperformed desktop display ad spend in all but two countries in 201538.1% 32.5% 25.0% 24.5% 23.3% 22.6% 22.6% 22.6% 16.1% 15.8% 14.9% 14.3% 11.1% 10.8% 9.7% 9.6% 9.6% 7.7% 6.2% -2.1% -19.6% 12.6% 12.4% 25.3% 7.9% 23.1% 22.3% 21.2% 0.1% 3.7% 7.7% 9.1% 13.2% 2.4% 0.2% 7.3% 7.1% 6.0% 1.5% -11.5% 4.3% -20.7% -30% -20% -10% 0% 10% 20% 30% 40% 50% Ireland Poland Croatia UK Spain Bulgaria Turkey Norway Italy France Sweden Austria Finland Hungary Denmark Serbia Germany CzechRepublic Netherlands Russia Belarus Display Display excluding mobile Display advertising year-on-year growth in 2015 (%) Source: IAB Europe and IHS © 2016 IHS
  29. 29. Fewer C&D markets experienced decline in 2015, but the rate of growth has slowed down in Europe 77.8% 66.0% 60.5% 32.3% 16.1% 15.0% 13.0% 12.0% 11.6% 9.9% 9.2% 5.8% 5.2% 4.9% 3.2% 2.1% 1.9% 0.3% 0.3% -1.2% -1.6% -3.4% -7.8% -30.7% -40% -20% 0% 20% 40% 60% 80% 100% Belarus Bulgaria Slovenia Serbia Hungary Croatia Austria Poland Germany Switzerland Netherlands Denmark UK Europe Slovakia France Turkey Ireland Finland Italy Sweden Norway Belgium CzechRepublic Classifieds & Directories year-on-year growth in 2015 (%) Source: IAB Europe and IHS
  30. 30. Paid-for-search maintains double-digit growth35.0% 30.0% 28.1% 27.6% 25.8% 25.7% 20.0% 19.9% 19.5% 18.2% 16.0% 15.3% 13.7% 12.6% 12.5% 10.8% 10.5% 10.0% 8.8% 6.3% 6.0% 5.0% 4.6% 4.0% 3.4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Sweden Croatia Ireland Switzerland Slovakia Norway Bulgaria Denmark Russia Turkey Hungary UK Spain Europe Poland Austria Netherlands Belarus CzechRepublic Finland Serbia Germany Italy France Belgium Paid-for-search year-on-year growth in 2015 (%) Source: IAB Europe and IHS
  31. 31. Variance across Europe in mobile share of search highlights national differences in search behaviour and monetisation 50.6% 36.5% 30.9% 30.0% 25.1% 23.3% 22.9% 22.3% 22.1% 21.5% 20.5% 18.7% 16.5% 5.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Ireland Austria Russia UK France Serbia Europe Sweden Italy Hungary CzechRepublic Germany Poland Spain Mobile share of paid-for-search ad spend in 2015 (%) Source: IAB Europe and IHS
  32. 32. Outlook for 2016 • Favourable economic forecasts • Large-scale sporting events: • Euro 2016 • Rio Olympics • Growth of video, facilitating the move of TV brand budgets online • New native ad formats • Tough comparatives • Plateau of paid-for-search • Complexity of devices, platforms, behaviours • No universal digital currency • Duplication & fragmentation of ad tech infrastructure Drivers Hurdles 7.8% 5.1% 4.9% 2.7% 0.5% -4.4% -6% -4% -2% 0% 2% 4% 6% 8% 10% Online Cinema TV Radio OOH Print Media ad spend growth in 2016 (%) Source: IHS © 2016 IHS
  33. 33. The data and charts shown in this report cannot be used without the expressed permission of IAB Europe and IHS
  34. 34. Contact: Daniel Knapp, daniel.knapp@ihs.com @_dknapp Eleni Marouli, eleni.marouli@ihs.com @EMarouli_Ad Alison Fennah, Fennah@iabeurope.eu Connect with us: @IABEurope IAB Europe www.iabeurope.eu

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