iab europe adex benchmark h1 2015

IAB Europe

AdEx Benchmark H1 2015

December 2015

The data and charts shown in this report cannot be

used without the expressed permission of IAB

Europe and IHS.

3

A meta-analysis of online ad spend in Europe

RATECARD

Campaigns x

Ratecard

GROSS

Revenue Billed

NET

Revenue Billed

No Agency commissions

4

Data from 27 European countries

• 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

New participant from 2014

5

Introduction

For the first time in 2015, IAB Europe and IHS are publishing the AdEx

Benchmark for H1 2015. The content of this analysis is powered by:

1) Reported data from local IABs where available (14 of the 27 countries,

covering 85% of the European market)

2) Estimates by local IABs based on local insight, in collaboration with IHS

3) Estimates by IHS based on forecasts from the IHS Advertising

Intelligence Service

See Appendix 1 for a list of markets where data is reported and estimated

This is an update of the full year study to provide nearer-term data on 2015

trends and help the understanding of and decision-making in the European

online advertising market.

6

The value of online advertising in H1 2015

€16.0bn

7

H1 2015: Eurozone macro-recovery provides foundation for ad growth

-8

-6

-4

-2

0

2

4

6

82

00

4-Q

1

20

04

-Q4

20

05

-Q3

2006-Q

2

20

07

-Q1

20

07

-Q4

20

08

-Q3

20

09

-Q2

20

10

-Q1

20

10

-Q4

20

11

-Q3

20

12

-Q2

2013-Q

1

20

13

-Q4

20

14

-Q3

20

15

-Q2

Eurozone France Italy Germany

GDP growth in the Eurozone (%)

Source: IHS

GDP growth in the Eurozone (%)

Source: IHS

8

Online advertising up 9.7% year-on-year in H1 2015

14.616.0

0

5

10

15

20

H1 2014 H1 2015

Total online advertising spend (€bn)

Source: IAB Europe and IHS

+9.7%

9

All formats noted increased their ad spend in H1 2015

4.9 5.6

2.4 2.5

7.27.9

0

5

10

15

20

H1 2014 H1 2015

Display Classifieds & Directories Paid-for-search

Total online advertising spend (€bn)

Source: IAB Europe and IHS

10

H1 2015 growth was driven by display formats

Display

•12.6%

Classifieds & Directories

•4.5%

Paid-for-search

•9.5%

Video

•37.3%

Non-video

•7.9%

Mobile

•57.5%

Non-mobile

•3.9%

Non-video, non-mobile display

• -6.1%

11

Europe: H1 2015 snapshot

H1 2014

(€bn)

H1 2015

(€bn)

Growth

(yoy %)

Share (%)

Display 4.9bn 5.6bn 12.6% 34.8%

Of which

video

0.8bn 1.1bn 37.3% 6.8%*

Of which

mobile

0.7bn 1.1bn 57.5% 7.5%*

Classifieds

&

Directories

2.4bn 2.5bn 4.5% 15.6%

Paid-for-

search

7.2bn 7.9bn 9.5% 49.6%

Total 14.6bn 16.0bn 9.7% 100.0%

*The share is calculated excluding countries who didn’t report video or mobile

12

Paid-for-search accounted for 50% of all ad spend

Classifieds &

Directories15.6%

Paid-for-search49.6%

Non-video display28.0% Video

6.8%

Display34.8%

Share of formats H1 2015

Source: IAB Europe and IHS

Classifieds &

Directories16.4%

Paid-for-search49.7%

Non-video display28.5% Video

5.4%

Display33.9%

Share of formats H1 2014

Source: IAB Europe and IHS

13

Mobile display ad spend crosses €1bn in H1 2015

716.2

1,127.7

0

200

400

600

800

1,000

1,200

H1 2014 H1 2015

Mobile display ad spend (€m)

Source: IAB Europe and IHS

+57.5%

14

One fourth of all display ad spend was generated via mobile in H1 2015

17.3% 24.0%

82.7% 76.0%

0%

20%

40%

60%

80%

100%

H1 2014 H1 2015

Mobile Desktop

Share of display ad spend (%)

Source: IAB Europe and IHS

15

Western Europe in H1 2015: a snapshot

34.4%

17.0%

48.6%

Display

Classifieds & Directories

Paid-for-search

Western Europe: format share of online ad

spend (%)

Source: IAB Europe and IHS

H1

2014

(€bn)

H1

2015

(€bn)

Growth

(yoy %)

Share

(%)

Display 4.3bn 4.8bn 13.0% 34.4%

Of which

video

0.7bn 1.0bn 40.7% 6.9%*

Of which

mobile

0.7bn 1.0bn 56.1% 7.4%*

Classifieds

&

Directories

2.3bn 2.4bn 4.4% 17.0%

Paid-for-

search

6.3bn 6.9bn 8.6% 48.6%

Total 12.9bn 14.1bn 9.3% 100.0%

16

CEE in H1 2015: a snapshot

H1

2014

(€bn)

H1

2015

(€bn)

Growth

(yoy %)

Share

(%)

Display 0.7bn 0.7bn 9.9% 38.0%

Of which

video

0.1bn 0.1bn 12.5% 5.6%*

Of which

mobile

0.04bn 0.1bn 78.1% 4.1%*

Classifieds

&

Directories

0.1bn 0.1bn 4.4% 5.3%

Paid-for-

search

0.9bn 1.1bn 15.4% 56.7%

Total 1.7bn 1.9bn 12.9% 100.0%

38.0%

5.3%

56.7%

Display

Classifieds & Directories

Paid-for-search

CEE: format share of online ad spend (%)

Source: IAB Europe and IHS

17

Outlook for FY 2015

6.6 9.214.5 15.8 18.8 21.9 24.4 27.4

14.6 16.0

16.117.9

05

10152025303540

2006 2007 2008 2009 2010 2011 2012 2013 2014 H12015

H1 H2

Total online advertising spend (€bn)

Source: IAB Europe for 2011-2014; 2006-2011 retropolated based on IHS growth rates

+9.7%

+11.1%

H2 2015 acceleration in growth is due to 1) good comparatives 2) advertising cyclicality

Forecast full year growth: +10.4%

Forecast full year ad spend: €33.9bn

18

In a flat advertising market, online will outperform all other media

-5.8% -1.1% 0.1% 0.9% 1.6%

10.4%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Europe: advertising spend forecasts for FY 2015 (%)

Source: Source: IHS

19

Appendix 1 – reported and estimated data by market

Partial of full data reported by local IABs:

• Denmark

• Finland

• France

• Germany

• Hungary

• Ireland

• Netherlands

• Norway

• Poland

• Russia

• Slovakia

• Switzerland

• Sweden

• Turkey

• UK

Estimated / modelled data:

• Austria

• Belarus

• Belgium

• Bulgaria

• Croatia

• Czech Republic

• Greece

• Italy

• Romania

• Serbia

• Slovenia

• Spain

Contact:

Alison Fennah, IAB Europe – Fennah@iabeurope.eu

Eleni Marouli, IHS Technology- eleni.marouli@ihs.com

@IABEurope

IAB Europe

www.iabeurope.eu

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