Internet Marketing Trends report 2012 UK & Europe


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Internet Marketing Trends report 2012 UK & Europe

  1. 1. TABLE OF CONTENTS Executive Summary 2 United Kingdom Internet Usage 3 Online Activities 4 Advertising Spend 5 Internet Advertising 6 Paid Search 7 Display Advertising 8 Mobile Marketing 9 Social Media 10 Europe Internet Advertising 13 Social Media 14 France Overview 15 Spain Overview 18Source of all statistics: Belgium Overview 21 About WSI 23
  2. 2. UK & EUROPE Executive Summary Despite Economic Turmoil, Digital Ad Spending on the Rise; Mobile Marketing to Spike in 2012 As Europe continues to struggle with a stubborn sovereign debt crisis, the region’s online ad spending is actually prospering, despite the difficult general economic environment. Given the harsh fiscal climate, however, total media ad spending is not expected to rise substantially. As a result, Europe’s still burgeoning online ad spending market will take a greater share of total ad spending and remain one of the only growing forms of ad spend. Overall, market conditions in Europe highlight the importance of and place more emphasis on forms of Internet marketing and communication. In similar fashion to the past few years, Internet advertising formats such as paid search, display ads and social media marketing experienced an increase in spending among UK and European Marketers in 2011, continuing the shift away from offline advertising like newspaper, radio and television. Recent statistics suggest that this trend will continue through 2012 and beyond. A relative newcomer to online advertising, mobile marketing exploded in 2011 and all signs indicate that it will become one of the leading forms of Internet ad spending in the very near future. The use of smartphones and tablets is increasing so rapidly that, in most European countries, over 90% of the population operates a mobile device. As people get more comfortable searching and interacting on the go, the Internet’s landscape is once again changing, and mobile marketing is certainly at the forefront. This Internet Marketing Trends Report is a brief summary of the current online marketing stats and patterns in the UK and Europe, as well predictions for the next few years. Specifically, the report covers Internet usage and penetration, advertising spending, Internet marketing, social media trends and activities and the expansion of mobile marketing.Copyright ©2012 by Research and Management Page 2 WSI Internet Marketing Trends Report 2012
  3. 3. UNITED KINGDOM Internet UsageUK Internet Users by Ageand Gender The majority of the UK’s onlinepopulation is between the ages of 16-44 (57%) 17% of UK Internet users arebetween the ages of 16-24, 20% arebetween 25-34 and another 20% arebetween 35-44 The third highest share of UKInternet users is the 45-54 age bracketat 19%UK Internet Users andPenetration The UK’s Internet use is still on therise, with a projected increase of 1.2million people from 2011 to 2012 By 2016, the number of UK Internetusers is expected to climb to 50.4million, which would be an increase of9 million users over the five yearperiod between 2011-2016 The percentage of the UK’s overallpopulation who uses the Internet isalso increasing; by 2016, almost 80%of the UK is projected to be using theInternet Copyright ©2012 by Research and Management Page 3 WSI Internet Marketing Trends Report 2012
  4. 4. UNITED KINGDOM Online ActivitiesOnline Services Used byUK Internet Users Facebook is the most popular onlineactivity among Internet users in the UK(65% of respondents) YouTube is the second most popularonline activity among Internet users inthe UK (50% of respondents inFebruary 2012) Twitter is the distant third mostpopular online activity among Internetusers in the UK (only 23% ofrespondents in February 2012) Other popular online activitiesamong Internet users in the UK, WindowsLive, LinkedIn and Google+Top Ten Websites Among Top 10 Websites Among UK Internet Users,UK Internet Users Dec 2011 12 Google UK is the most popular site in 10the UK with 9.67% market share of 8 6visits in December 2011 4 2 The next most popular site is 0 %Facebook (7.58% share) YouTube ranked in third place(3.41%) and eBay UK in fourth (1.81%) Source: Experian Hitwise, Jan Other sites listed in the top teninclude Windows Live mail, MSN UK,BBC News and Yahoo! UK and Ireland Copyright ©2012by Research and Management Page 4 WSI Internet Marketing Trends Report 2011 WSI Internet Marketing Trends Report 2012
  5. 5. UNITED KINGDOM Advertising SpendUK Ad Spending, byMedia Ad spending in the UK is heading intoa period of low growth (only 2%change is expected). Internet adspending in the UK in 2012, however,is projected to climb by 11.3% over2011’s final ad spend of £3,772 million Conversely, press ad spending, whichhas been on a steady decline since2009, is expected to drop from £3,307million in 2011 to €3,012 million in2012 (a 9% drop). Radio ad spending isalso projected to take a 1% hit in 2012 TV and cinema ad spending projectto hold steady, with 1.5% and 0%growth ratesUK Display Ad RevenueShare, by Industry According to the InteractiveAdvertising Bureau UK, the financeindustry led 2011 in online display adrevenue, with a 15.6% share Ranked a close second in onlinedisplay ad revenue for 2011 was theconsumer goods industry, which held a14.5% share Other industries with a significantshare of 2011’s display ad revenueincluded entertainment and the media(12.4%), travel and transport (10.3%)and retail (9.7%) Copyright ©2012 by Research and Management Page 5 WSI Internet Marketing Trends Report 2012
  6. 6. UNITED KINGDOM Internet AdvertisingSteady Increase in OnlineAd Spending UK Online Ad Spending, 2010-2014 eMarketer predicts that £5.09 billion Source: eMarketer, Nov 2011 (£ billions and % change)will be spent advertising online this 7 6.72year in the UK, a 12% increase over 6 6.22011 5. 5 4.5 4.1 10% According to the same study, £6.22 4 11%billion will be spent advertising online 12% 3 11%next year (11% increase) 15% 2 This growth is expected to continue 1into 2014, when £6.72 billion will bespent advertising online (an increase 0of 10% over 2013) 2010 2011 2012 2013 2014Internet Advertising to Projected UK Advertising Spend Share, byTake Lead Share of Total Media, 2012 (% of total)UK Ad Spend 3.5% 1.5% Internet 35% of total advertising spending in 7% Pressthe UK is expected to be allocated 35% TVtoward online advertising in 2012, 28%which would give it the leading share Outdoorby 7% over TV (28%) 25% Radio Press is expected to garner the third Cinemalargest share of ad spend (25%), whilethe remainder will be divided amongoutdoor, radio and cinemaCopyright ©2012 by Research and Management Page 6 WSI Internet Marketing Trends Report 2012
  7. 7. UNITED KINGDOM Paid SearchPaid Search Remains TopAd Spend Format Paid search advertising is expectedto increase at a compound annualgrowth rate (CAGR) of 9.7% over thenext few years and will climb to nearly$6 billion by 2015 In 2012, paid search advertisingspend is projected to reach $4.45billion, which would be an 11%increase of 2011 Overall, paid search advertising willcontinue to hold more than a 50%share of total UK online ad spending.By 2015, the next closest share isexpected to be held by displayadvertising (a 27% share)UK Paid Mobile and TabletSearch Spending on theRise UK’s paid search spending share isstill dominated by one device, withcomputers holding a share of over 90% A noticeable trend is occurring asboth smartphones and tablets arerapidly taking an equal portion of thepaid search spending share away fromcomputers As the overall usage of smartphonesand tablets steadily rises, moresearches will be conducted on thesedevices, which means the trend islikely continue into 2012 and beyond Copyright ©2012 by Research and Management Page 7 WSI Internet Marketing Trends Report 2012
  8. 8. UNITED KINGDOM Display Advertising UK Continues to Spend More on Display UK Display Ad Spending Share, 2011-2015 Advertising Source: eMarketer, Nov (by %)  According to eMarketer, display ad’s 27 spending share in the UK will experience small but steady growth in 26 2012, rising from 23.7% to 24.8% 25 (%) 24  Display ad spending in the UK is 23 expected to increase its share all the way to 26.6% by 2015, nearly a full 3% 22 2011 2012 2013 2014 2015 jump from 2011Video AdvertisingExperiences RapidGrowth Display – more specifically, videoadvertising – will experience thehighest growth rate among all UKonline ad spending by a significantmargin In 2012, eMarketer forecasts thatvideo advertising spend willexperience 70.7% growth, which ismore than 50% higher than thesecond highest projection (email at17.9%) The growth of video advertising’sspend is predicted to drop slightly overthe next few years, but its expectedgrowth rate of 45.2% for 2015 is stillextremely high and indicative of apowerful trend Copyright ©2012 by Research and Management Page 8 WSI Internet Marketing Trends Report 2012
  9. 9. UNITED KINGDOM Mobile MarketingUK Mobile Ad SpendingSet to Explode eMarketer forecasts mobile adspending in the UK will grow 63.7% to$314.7 million in 2012, as moreconsumers use their mobile phonesfor online entertainment on the go Moving forward, mobile adspending in the UK will continue torise, jumping to $503.1 million in2013 and then $792.3 million in 2014 By 2015, eMarketer predictions thatmobile ad spending in the UK willreach a staggering $1.2 billion, anoverall increase of $1 billion since2010UK Mobile Ad Spending,by Format Total ad spending on the mobileplatform in the UK will post a 57%CAGR between 2010 and 2015 Impressive growth confirms theimportance of search in the UK’smobile economy. Advertisers willspend $212 million on mobile searchads in 2012, or 67% of all mobile adspending In the UK, 81% of adult smartphoneusers polled in Q2 2011 by Googleand the Mobile Marketing Associationsaid they run local searches on theirdevices, which highlights theimportance of having a mobile adspending budget Copyright ©2012 by Research and Management Page 9 WSI Internet Marketing Trends Report 2012
  10. 10. UNITED KINGDOM Social MediaSocial Network Use in theUK Continues to Rise This year, more than 55% (26million) of the UK’s Internet users willbe active on social networks, an 8%increase over 2011 In 2013, 57.7% or 27.7 million peoplewill be using social networks in the UK,and by 2014, that number will climb to29.4 million people (60% of Internetusers)Social Network UsersDivided About BeingServed Ads 54% of respondents who were asked"I dont mind seeing adverts on socialmedia services that are based on myprofile activities: To what extent do youagree or disagree with the followingstatements?" gave a neutral or positiveanswer 18% of respondents either agreed oragreed entirely, while 30% neitheragreed nor disagreed 47% of respondents indicated thatthey were not happy about beingserved ads based on their social mediaactivities Copyright ©2012 by Research and Management Page 10 WSI Internet Marketing Trends Report 2012
  11. 11. UNITED KINGDOM Social Media Facebook Used by the Majority  eMarketer forecasts that 2 million more people in the UK will begin using Facebook in 2012, a growth of 9.8% from 2011  The 22.9 million users projected to be on Facebook in 2012 represents 88.6% of UK social network users, 49% of Internet users and 36.4% of the population  By 2014, 26 million people in the UK are expected to be using Facebook, which would be more than half of all Internet usersLeading Social Networks Facebook is the leading social networksite accessed on both classic web (75.7%reach) and mobile (41.6% reach)browsers Twitter is the distant second leadingsocial network site accessed on classicweb (19.5% reach) and mobile (4.8%reach) browsers Other social networks being accessedare LinkedIn, Myspace and Tumblr The overall numbers for socialnetworks being accessed via a mobiledevice have a higher % reach, since thisparticular survey does not includemobile users who access social networksvia mobile applications Copyright ©2012 by Research and Management Page 11 WSI Internet Marketing Trends Report 2012
  12. 12. UNITED KINGDOM Social MediaTop Social DisplayAdvertising Industries As of September 2011, the top socialdisplay advertising industry in the UK –ranked by socially enabled display adimpressions – was consumer goods at58.6 million impressions The travel industry ranked a distantsecond with 39.3 million impressions,while the finance industry was thirdwith 35.9 million impressions Other top display ad industries in theUK include health (13.9 millionimpressions), telecom (10.3 millionimpressions and online media (10.1million impressions)UK Internet UsersSharing BrandInformation 33% of UK Internet users said theyshare brand or product informationon social networks, with over 20%claiming they do so on a daily,weekly or monthly basis 67% of UK Internet users said theynever share brand of productinformation on social networks, butwith the overall use of socialnetworks still on the rise, it isreasonable to assume some of thesepeople will begin sharing Copyright ©2012 by Research and Management Page 12 WSI Internet Marketing Trends Report 2012
  13. 13. EUROPE Internet AdvertisingOnline Ad Spending inEurope to Increase Barclays Capital forecasts that online Online Ad Spending in Europe, 2011-2015ad spending in Europe will swell to (USD, billions)$28.6 billion in 2012, an increase of12% over 2011 Western Europe Eastern Europe In 2013, Western Europe’s online ad 2015 35 3.8spending is predicted to reach $29 2014 32 3.4billion and Eastern Europe’s spend willclimb to $3 billion, pushing Europe’s 2013 29 3total online ad spend to $432 billion Source: Barclays 2012 26 2.6 2011 23 2.2 By 2015, Europe’s online ad spend isexpected to total $38.8 billion, whichis an overall growth rate of 54% from2012-2015Mobile Ad Spending inWestern Europe Set toExplode eMarketer predicts that mobile adspending in Western Europe will climbup over $1 billion in 2012, a 59.9%increase from 2011 In 2013, mobile ad spending inWestern Europe is expected to grow by54.8% to $1.6 billion By 2015, mobile ad spending inWestern Europe will reach $3.6 billion,which would represent a four-yeargrowth rate of 82%Copyright ©2012 by Research and Management Page 13 WSI Internet Marketing Trends Report 2012
  14. 14. EUROPE Social MediaSocial Network Use inWestern Europe Still onthe Rise In 2012, eMarketer forecasts that54.4% of all Internet users inWestern Europe will use socialnetworks Spain projects to have the highestpercentage of their Internet users onsocial networks with 58.7% in 2012,while Italy is second with 56.9% By 2014, 60.8% of all Internet usersin Western Europe are expected tobe active on social networks, withSpain continuing to lead the way(65.9% of their Internet userpopulation)Social Network Use Soarsin Eastern Europe Eastern Europe enjoys one of thehighest social network penetrationrates among Internet users, as socialnetworking is a key driver of onlineusage in the region In 2012, eMarketer forecasts that157 million people in Eastern Europewill be active on social networks,which represents 74.6% of Internetusers and 37% of the region’spopulation By 2014, 192.7 million people inEastern Europe are expected to usesocial networks (78.6% of Internetusers and 45.4% of the population) Copyright ©2012 by Research and Management Page 14 WSI Internet Marketing Trends Report 2012
  15. 15. EUROPE France Online Ad Spending in France to Steadily Increase  France’s online ad spending is expected to grow by 12% in 2012, reaching a total of $3.1 billion  In 2013, that number projects to $3.3 billion and then to $3.6 billion for 2014  By 2015, France’s online ad spending will spike to $3.9 billion, which would be a four-year growth of 44%Internet Ad SpendRemains Second Highest inFrance Internet advertising spending inFrance has consistently increased overthe years and the trend is expected tocontinue into 2012 and 2013 According to ZenithOptimedia, $2, 473million was spent advertising online inFrance in 2011 Second to only TV advertising,Internet ad spend in France will see $2,931 million in spending by 2013,remaining well ahead of magazine,outdoor, newspaper, radio and cinemaads Copyright ©2012 by Research and Management Page 15 WSI Internet Marketing Trends Report 2012
  16. 16. EUROPE FranceMobile PhoneSubscriptions TrendingUpwards According to the Autorite deRegulation des Communicationselectronique des Postes, 57.4 millionpeople in France had mobile phonesubscriptions as of December 2009,which represented 92.4% of thecountry’s population By September of 2011, 62.59 millionpeople in France had mobile phonesubscriptions; a staggering 99.7% ofFrance’s population uses a mobiledevice, which underscores both therapid growth and importance of themobile marketMobile Ad SpendingGrows Quickly Mobile ad spending in France isexpected to reach $134.7 million in2012, a very significant 48.7% increaseover 2011 According to eMarketer, mobile adspending will then jump 53% in 2013to $206 million, and a further 49.1% in2014 ($307.1 million) By 2015, mobile ad spending ispredicted to hit $434 million, a fouryear growth of 379% Copyright ©2012 by Research and Management Page 16 WSI Internet Marketing Trends Report 2012
  17. 17. EUROPE FranceSocial NetworkDemographics According to comScore Inc.,Facebook is the most used socialnetwork in France, totaling 31.3million unique visitors (Aug 2011) The survey revealed that, in general,males between the ages of 15-34 arethe leading social network userdemographic Skyrock is the second most usedsocial network in France, with 8 milliontotal unique visitors (53% male and37% between the ages of 15-24)Internet Users Start toFollow Brands on SocialNetworks According to a survey, 16% ofInternet users in France who respondedsaid they follow brands or companieson a social network Of those who responded yes, 15% saidthey follow only one brand or company,27% said they follow two and 58%indicated that they follow more thanthree 84% of respondents said they do notfollow brands or companies on a socialnetwork, but with the overall use ofsocial networks on the rise, it isreasonable to expect that more peoplewill begin to change their minds aboutdoing so Copyright ©2012 by Research and Management Page 17 WSI Internet Marketing Trends Report 2012
  18. 18. EUROPE SpainOnline Ad Spending inSpain Increases Spain’s online ad spending isexpected to grow by 15.3% in 2012,reaching a total of $1.4 billion In 2013, that number projects to$1.6 billion and then to $1.8 billion for2014 By 2015, Spain’s online ad spendingwill spike to $2 billion, which would bea four-year growth of 66%Broadband SubscriptionsIncrease Broadband subscriptions in Spain,which have bean steadily on the riseover the last four years, reached 10.57million in December 2010, up from justover 8 million back in 2007 According to La Comision delMercado de las Telecomunicaciones,by December 2011 broadbandsubscriptions reached 11.15 million, a39% increase Copyright ©2012 by Research and Management Page 18 WSI Internet Marketing Trends Report 2012
  19. 19. EUROPE SpainMobile PhoneSubscriptions TrendingUpwards According to La Comision delMercado de las Telecomunicaciones,52.89 million people in Spain hadmobile phone subscriptions as ofDecember 2009, which represented114.6% of the country’s population By December 2011, 56.19 millionpeople in Spain had mobile phonesubscriptions; a staggering 121.7% ofSpain’s population uses a mobiledevice, which underscores both therapid growth and importance of themobile marketMobile Ad Spend Grows Mobile ad spending in Spain isexpected to reach $59.1 million in 2012,a very significant 64.1% increase over2011 According to eMarketer, mobile adspending will then jump 58% in 2013 to$93.3 million, and a further 54.3% in2014 ($144 million) By 2015, mobile ad spending ispredicted to hit $214.7 million, a fouryear growth of almost 500% Copyright ©2012 by Research and Management Page 19 WSI Internet Marketing Trends Report 2012
  20. 20. EUROPE SpainFacebook is Top SocialNetwork According to comScore Inc.,Facebook is the most used socialnetwork in Spain, totaling 16, 630thousand unique visitors (Dec 2011) The survey revealed that Facebookgarnered a 77.8% reach and visitorsspent a total of 290.3 minutes each onthe site Tuenti came in a distant second,receiving 7,016 thousand uniquevisitors with a 32.8% reach, but amarginally more significant 316.5minutes per visitor The top five was rounded out byWindows Live (4, 491), Twitter (3,604)and LinkedIn (2,245)Social Network Use, byAge and Gender According to a survey conducted byElogia, 61% of social network users inSpain are male, while 39% are female The age of social network users inSpain is spread evenly, with 34% fallingbetween the ages of 18-30, another34% between the ages 31-39 and aslightly lower 32% between the ages of40-55 Copyright ©2012 by Research and Management Page 20 WSI Internet Marketing Trends Report 2012
  21. 21. EUROPE BelgiumInternet Usage in Belgium According to comScore Inc., as ofNovember 2011 Belgium’s Internetusage was generating 6.1 millionunique visitors Internet users in Belgium wereaveraging 20.8 hours per visitor and2,286 average pages per visitor At the time of the survey, Sweden, asimilar sized country to Belgium,generated 6.2 million unique visitors,and 25.9 average hours per visitorwith 2, 697 pages per visitorBelgium Ranks 7th forGrowth of Mobile AppUsage Sessions The small country of Belgium landedin the top ten countries for growth ofmobile app usage sessions (seventh,with a growth rate of 363%) Other top countries experiencingrapid growth of their mobile app usagesessions included Argentina (527%),Israel (427%) and India (398%), butconsidering Belgium’s small population,their presence in the top ten issignificant Copyright ©2012 by Research and Management Page 21 WSI Internet Marketing Trends Report 2012
  22. 22. EUROPE BelgiumSocial Media Users inBelgium 48% of respondents from Belgiumsaid they were participating in socialnetworks, with 8% indicating that theywere active in professional socialnetworks According to Eurostat’s December2011 survey, Belgium’s 48% markcompares favorably to even the topranked country (the UK has the highestnumber of people participating insocial networks, with 58% ofrespondents – of which 13% are activein professional social networks)Broadband Households inWestern Europe Belgium, which had the secondhighest percentage of broadbandhouseholds in 2006 (48%), jumped26% to 74% broadband households in2011 The Eurostat survey, conducted inDecember 2011, showed that Belgiumranked alongside the Netherlands andthe UK (83% each) as the leadingnations of Western Europe forbroadband households Copyright ©2012 by Research and Management Page 22 WSI Internet Marketing Trends Report 2012
  23. 23. ABOUT WSIWSI leads the global Internet industry offering best of breed digital marketing solutions tosuit the needs of multiple industries. The company has the world’s largest InternetConsultants’ network across 80 countries with its head office in Toronto, Canada. WSIConsultants have helped thousands of businesses realize their online marketing potential. Byusing innovative Internet technologies and advanced digital marketing strategies, businessescan have a WSI Digital Marketing Plan tailored to their individual needs to elevate theirInternet presence and profitability to new levels. With the support and cooperation of itscustomers, franchise network, employees, suppliers and charitable organizations, WSI aimsto help make child poverty history through its global outreach program( For more information about WSI’s offerings andbusiness opportunities, please visit our website at information herein is the property of Research and Management Corporate (RAM). EachWSI franchise office is an independently owned and operated business. ©2012 RAM. All rights reserved.