ad ex 2009 internet advertising spending in europe

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Ad Ex 2009Internet advertising spending in

Europe

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Agenda

• Topline figures• Methodology• Key trends

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Topline Figures

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The Results

14.7 billion euros

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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

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2008 20090

2

4

6

8

10

12

14

16

13.0614.70

Internet adspend in €bn

A like-for-like growth rate of 4.5%• At constant country sample (19 countries of 2008)• At constant exchange rate

+4.5% (like-for-like)

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Europe catches up with the US as the US market declined in 2009

2008 200902468

1012141618

13.0614.70

16.83 16.26

Total online ad spend Europe vs. USA (€bn)

EuropeUSA

Source for USA data: IAB/PWC

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Methodology

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Our European coverage now includes 23 countriesFour new countries added in 2009

• Austria• Belgium• Bulgaria*• Croatia• Denmark• Finland• France• Germany• Greece• Hungary• Italy

• Netherlands• Norway• Poland• Russia*• Romania• Slovenia• Slovakia*• Spain• Sweden• Switzerland*• Turkey• UK

*New in 2009

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Comparing “apples to apples”

RATECARD

Campaigns x Ratecard

GROSS

Revenue Billed

NET

Revenue Billed No Agency commissions

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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

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Key Trends

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Formats: Search strengthens lead with 46% share

30%

23%

46%

1%

2009 internet adspend by segment

DisplayClassifieds/DirectoriesPaid SearchOther

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Formats: Search drives growth during recession

Note: Like-for-like growth is calculated excluding the new submissions (Bulgaria, Slovakia, Switzerland and Russia) for which no data was available in 2008.

Display Classifieds Search Total

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

0.3%

-1.4%

10.8%

4.5%

Growth of formats in 2009 (like-for-like)

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20090

1,0002,0003,0004,0005,0006,0007,0008,000

4,3663,420

6,733

182

Internet adspend in €m

Display Classifieds/DirectoriesSearch Other

Formats: Search nears €7bn

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Markets: The top 6 countries make up 76% of the total

Denmark

Norway

Sweden

Russia

Spain

Netherlands

Italy

France

Germany

UK

€ 0 € 500 € 1,000 € 1,500 € 2,000 € 2,500 € 3,000 € 3,500 € 4,000 € 4,500

€ 374

€ 390

€ 455

€ 635

€ 800

€ 798

€ 1,731

€ 2,939

€ 3,834

€ 384

€ 401

€ 467

€ 514

€ 683

€ 815

€ 849

€ 1,760

€ 3,092

€ 4,011

Online ad spend by country 2008 vs. 2009 (€m)

20092008

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Markets: contrasting trends among emerging markets

Gre

ece

Aust

ria

Pola

nd

Turk

ey

Spai

n

Hung

ary

Italy

Ger

man

y

Belg

ium

Finl

and

UK

Swed

en

Fran

ce

Denm

ark

Neth

erla

nds

Slov

enia

Norw

ay

Croa

tia

Rom

ania

-5%

0%

5%

10%

15%

20%49%

14%13%

12%

7% 7% 6%5%

5% 4%3% 3% 2% 2% 2% 2% 1%

-3%

-5%

Total growth by country from 2008 to 200949%

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-5% to 0%

0% to +5%

+5% to +10%

+10% and aboveOnline adspend growth 2009

Markets: contrasting trends among emerging markets

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-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Online Market Share*

Year

-on-

year

gro

wth

2009

AustriaPoland

Italy

SlovakiaRomania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

AustriaPoland

Italy

SlovakiaRomania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

AustriaPoland

Italy

SlovakiaRomania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

AustriaPoland

Italy

SlovakiaRomania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

Germany

UK

48%

Market: Growth and maturity

*Calculated using Screen Digest Advertising Intelligence data which incorporates TV, print, radio, outdoor and cinema advertising

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Thank you

• For more information please contact Catherine Borrel, research@iabeurope.eu