global ad spend by vertical jan 2013

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Global Advertising Outlook Name January, 2013

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Page 1: Global ad spend by vertical jan 2013

Global Advertising Outlook

Name

January, 2013

Page 2: Global ad spend by vertical jan 2013

TOTAL MEDIA

SPEND

Page 3: Global ad spend by vertical jan 2013

3

GlobalWorldwide Total Media Ad Spend Continues To Grow

Total Media Ad Spending & Growth, 2011-2016 (in Billions)

$492.3 $492.3 $492.3 $492.3 $518.8 $518.8 $518.8 $518.8

$545.8 $545.8 $545.8 $545.8 $575.0 $575.0 $575.0 $575.0

$600.8 $600.8 $600.8 $600.8 $628.2 $628.2 $628.2 $628.2

2011 2012 2013 2014 2015 2016

3.6%3.6%3.6%3.6% 5.4%5.4%5.4%5.4% 5.2%5.2%5.2%5.2% 5.4%5.4%5.4%5.4% 4.5%4.5%4.5%4.5% 4.6%4.6%4.6%4.6%

CAGR = 4.9%CAGR = 4.9%CAGR = 4.9%CAGR = 4.9%

• Marketers will invest $518.8 billion in total media

advertising worldwide this year• By 2015, total media ad expenditures will pass

the $600 billion mark

• North America will lead the other global regions in total media ad spending

• Asia-Pacific, Eastern Europe, Latin America and the Middle East and Africa will each see higher than average ad spending gains through 2016

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Graph Source: eMarketer Estimates

Page 4: Global ad spend by vertical jan 2013

4

Asia-PacificTotal Media Ad Spending Expected to Grow at a CAGR of 7%

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Total Media Ad Spending & Growth, 2011-2016 (in Billions)

$134.5 $134.5 $134.5 $134.5 $145.9 $145.9 $145.9 $145.9

$157.5 $157.5 $157.5 $157.5 $168.8 $168.8 $168.8 $168.8

$179.8 $179.8 $179.8 $179.8 $190.9 $190.9 $190.9 $190.9

2011 2012 2013 2014 2015 2016

2.9%2.9%2.9%2.9% 8.5%8.5%8.5%8.5% 7.9%7.9%7.9%7.9% 7.2%7.2%7.2%7.2% 6.5%6.5%6.5%6.5% 6.2%6.2%6.2%6.2%

CAGR = 6.9%CAGR = 6.9%CAGR = 6.9%CAGR = 6.9%

• With $145.9 billion in total advertising, Asia-Pacific had the second-largest advertising economy worldwide after North America in 2012

• Through 2016, eMarketer predicts total ad

spending in Asia-Pacific will grow faster than in North America, thanks to budding advertising economies and extraordinary growth rates in internet and mobile internet use in China,

Indonesia and India

• Japan’s setback in ad spending in 2011 (due to

the tsunami), combined with China’s robust

consumer base will help propel China ahead of Japan in ad investments by $3.4 billion in 2014

Graph Source: eMarketer Estimates

Page 5: Global ad spend by vertical jan 2013

5

Western Europe – Total Media Ad Spending

Digital Media Spending Thrives in Western Europe, eMarketer Dec 2011

$29.2$29.2$29.2$29.2 $29.9$29.9$29.9$29.9 $30.7$30.7$30.7$30.7 $32.0$32.0$32.0$32.0 $32.3$32.3$32.3$32.3 $32.7$32.7$32.7$32.7

$7.7$7.7$7.7$7.7 $7.3$7.3$7.3$7.3 $7.5$7.5$7.5$7.5 $7.8$7.8$7.8$7.8 $8.0$8.0$8.0$8.0 $8.2$8.2$8.2$8.2$13.0$13.0$13.0$13.0 $13.0$13.0$13.0$13.0 $13.5$13.5$13.5$13.5 $13.9$13.9$13.9$13.9 $14.3$14.3$14.3$14.3 $14.7$14.7$14.7$14.7

$15.3$15.3$15.3$15.3 $15.6$15.6$15.6$15.6 $15.8$15.8$15.8$15.8 $16.0$16.0$16.0$16.0 $16.2$16.2$16.2$16.2 $16.4$16.4$16.4$16.4

$21.7$21.7$21.7$21.7 $22.3$22.3$22.3$22.3 $23.4$23.4$23.4$23.4 $24.3$24.3$24.3$24.3 $25.6$25.6$25.6$25.6 $26.2$26.2$26.2$26.2

$25.5$25.5$25.5$25.5 $26.2$26.2$26.2$26.2 $26.7$26.7$26.7$26.7 $27.2$27.2$27.2$27.2 $27.6$27.6$27.6$27.6 $28.0$28.0$28.0$28.0

2010 2011 2012 2013 2014 2015

Germany

UK

France

Italy

Spain

Others

Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 –––– 2015 (BN)2015 (BN)2015 (BN)2015 (BN)

$112.4$112.4$112.4$112.4 $114.4$114.4$114.4$114.4 $117.6$117.6$117.6$117.6 $121.2$121.2$121.2$121.2 $124.0$124.0$124.0$124.0 $126.2$126.2$126.2$126.2

• Advertising across major platforms will slow down in the European region amidst economic slowdown, however,

online advertising is experiencing rapid growth• Total media ad spending in Western Europe will reach $126 Billion by 2015 from $114 billion in 2011 (CAGR~3%)

Page 6: Global ad spend by vertical jan 2013

6

Middle East-AfricaOne of the Fastest Growing Markets Globally

Total Media Ad Spending, 2011-2016 (in Billions)

$16.0 $16.0 $16.0 $16.0 $17.2 $17.2 $17.2 $17.2

$18.3 $18.3 $18.3 $18.3 $19.6 $19.6 $19.6 $19.6

$20.8 $20.8 $20.8 $20.8 $22.0 $22.0 $22.0 $22.0

2011 2012 2013 2014 2015 2016

10.7%10.7%10.7%10.7% 7.5%7.5%7.5%7.5% 6.9%6.9%6.9%6.9% 6.9%6.9%6.9%6.9% 6.0%6.0%6.0%6.0% 5.7%5.7%5.7%5.7%

CAGR = 6.4%CAGR = 6.4%CAGR = 6.4%CAGR = 6.4%

• Ad spending in the Middle East and Africa remains the lowest in the world, and recent

political instability has aggravated this situation in some areas

• Yet the Middle East and Africa represent one of the fastest-growing markets globally. Advertisers are eager to reach this expanding population as rising income levels boost aspiration and consumption

• As North America began to lose share in 2011,

the emerging economies of the Middle East and

Africa saw spending increase

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 7: Global ad spend by vertical jan 2013

7

Latin America

Ad Spending in the Region to Rise 10% in 2013

Total Media Ad Spending, 2011-2016 (in Billions)

$31.2 $31.2 $31.2 $31.2 $34.7 $34.7 $34.7 $34.7

$38.1 $38.1 $38.1 $38.1 $42.7 $42.7 $42.7 $42.7

$46.8 $46.8 $46.8 $46.8 $51.3 $51.3 $51.3 $51.3

2011 2012 2013 2014 2015 2016

13.9%13.9%13.9%13.9% 11.0%11.0%11.0%11.0% 10.0%10.0%10.0%10.0% 12.0%12.0%12.0%12.0% 9.5%9.5%9.5%9.5% 9.8%9.8%9.8%9.8%

CAGR = 10.3%CAGR = 10.3%CAGR = 10.3%CAGR = 10.3%

• With its expanding population of increasingly affluent consumers, Latin America is one of the

world’s fastest-growing advertising markets

• eMarketer estimates that ad spending in the region will rise by 10% in 2013, and will continue

its double-digit growth through 2016• National and regional advertisers will fuel much

of this activity, but multinational advertisers may also devote more attention to Latin America if

economic uncertainty in North America and Europe continues to affect business prospects

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 8: Global ad spend by vertical jan 2013

TOTAL MEDIA

SPEND ACROSS

MEDIA

Page 9: Global ad spend by vertical jan 2013

9

Western EuropeOnline Advertising to grow at 28%

InternetInternetInternetInternet

20.3%20.3%20.3%20.3%

NewspapersNewspapersNewspapersNewspapers

24.5%24.5%24.5%24.5%

MagazinesMagazinesMagazinesMagazines

12.4%12.4%12.4%12.4%

TVTVTVTV

30.3%30.3%30.3%30.3%

RadioRadioRadioRadio

5.6%5.6%5.6%5.6%

CinemaCinemaCinemaCinema

0.7%0.7%0.7%0.7%

OutdoorOutdoorOutdoorOutdoor

6.3%6.3%6.3%6.3%

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

Newspapers Magazines TV Radio Cinema Outdoor Internet

Share of Ad Spend by Medium (%) 2011

2012201220122012

0000

2015201520152015

Total Ad Spending Across Mediums

2012 & 2015 (in millions)

----7.1%7.1%7.1%7.1% ----8.1%8.1%8.1%8.1% 1.8%1.8%1.8%1.8% 1.6%1.6%1.6%1.6% 3.1%3.1%3.1%3.1% 2.8%2.8%2.8%2.8% 27.5%27.5%27.5%27.5%

• Television & Newspapers demand a major chunk of the Total Media Ad Spends in Western Europe with Internet in 3rd place• Internet Advertising Spends are expected to grow at 27.5%, which is the highest growth rate across all media

Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012

Page 10: Global ad spend by vertical jan 2013

10

Asia-PacificOnline Advertising to grow at 46%

InternetInternetInternetInternet

16.3%16.3%16.3%16.3%

NewspapersNewspapersNewspapersNewspapers

22.5%22.5%22.5%22.5%

MagazinesMagazinesMagazinesMagazines

5.1%5.1%5.1%5.1%

TVTVTVTV

41.8%41.8%41.8%41.8%

RadioRadioRadioRadio

4.2%4.2%4.2%4.2%

CinemaCinemaCinemaCinema

0.4%0.4%0.4%0.4%

OutdoorOutdoorOutdoorOutdoor

9.8%9.8%9.8%9.8%

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

Newspapers Magazines TV Radio Cinema Outdoor Internet

Share of Ad Spend by Medium (%) 2011

Total Ad Spending Across Mediums

2012 & 2015 (in millions)

2012201220122012 2015201520152015

• Television & Newspapers demand a major chunk of the Total Media Ad Spends in Asia-Pacific with Internet in 3rd place• Internet Advertising Spends are expected to grow at 45.7%, which is the highest growth rate across all media

7.6%7.6%7.6%7.6% ----5.2%5.2%5.2%5.2% 18.9%18.9%18.9%18.9% 12.2%12.2%12.2%12.2% 14.2%14.2%14.2%14.2% 10.1%10.1%10.1%10.1% 45.7%45.7%45.7%45.7%

Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012

Page 11: Global ad spend by vertical jan 2013

11

Latin America

Online Advertising to grow at 87%

InternetInternetInternetInternet

4.0%4.0%4.0%4.0%

NewspapersNewspapersNewspapersNewspapers

17.1%17.1%17.1%17.1%

MagazinesMagazinesMagazinesMagazines

6.5%6.5%6.5%6.5%

TVTVTVTV

62.3%62.3%62.3%62.3%

RadioRadioRadioRadio

6.1%6.1%6.1%6.1%

CinemaCinemaCinemaCinema

0.4%0.4%0.4%0.4%OutdoorOutdoorOutdoorOutdoor

3.6%3.6%3.6%3.6%

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

Newspapers Magazines TV Radio Cinema Outdoor Internet

Share of Ad Spend by Medium (%) 2011

Total Ad Spending Across Mediums

2012 & 2015 (in millions)

2012201220122012 2015201520152015

• Internet Advertising Spends are expected to grow at 86.5%, which is the highest growth rate across all media

28.5%28.5%28.5%28.5% 21.3%21.3%21.3%21.3% 30.8%30.8%30.8%30.8% 21.6%21.6%21.6%21.6% 21.5%21.5%21.5%21.5% 30.7%30.7%30.7%30.7% 86.5%86.5%86.5%86.5%

Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012

Page 12: Global ad spend by vertical jan 2013

12

Middle East-AfricaOnline Advertising to grow at 70%

InternetInternetInternetInternet

2.5%2.5%2.5%2.5%

NewspapersNewspapersNewspapersNewspapers

34.0%34.0%34.0%34.0%

MagazinesMagazinesMagazinesMagazines

4.0%4.0%4.0%4.0%

TVTVTVTV

50.2%50.2%50.2%50.2%

RadioRadioRadioRadio

3.7%3.7%3.7%3.7%

CinemaCinemaCinemaCinema

0.6%0.6%0.6%0.6%

OutdoorOutdoorOutdoorOutdoor

5.0%5.0%5.0%5.0%

$-

$0.5

$1.0

$1.5

$2.0

$2.5

Newspapers Magazines TV Radio Cinema Outdoor Internet

Share of Ad Spend by Medium (%) 2011

Total Ad Spending Across Mediums

2012 & 2015 (in millions)

2012201220122012 2015201520152015

• Internet Advertising Spends are expected to grow at 69.9%, which is relatively higher than most of the other media• Total Online Ad Spends is very small compared to other media in Middle East-Africa

---- 0.9%0.9%0.9%0.9% ---- 5.1%5.1%5.1%5.1% 9.7%9.7%9.7%9.7% 2.1%2.1%2.1%2.1% ---- 4.3%4.3%4.3%4.3% 16.2%16.2%16.2%16.2% 69.9%69.9%69.9%69.9%

Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012

Page 13: Global ad spend by vertical jan 2013

ONLINE

ADVERTISING

Page 14: Global ad spend by vertical jan 2013

14

GlobalOnline Ad Spending Drives Growth

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Total Online Ad Spending & Growth, 2011-2016 (in Billions)

$87.3 $87.3 $87.3 $87.3

$102.8 $102.8 $102.8 $102.8

$118.4 $118.4 $118.4 $118.4

$134.7 $134.7 $134.7 $134.7 $149.2 $149.2 $149.2 $149.2

$163.0 $163.0 $163.0 $163.0

2011 2012 2013 2014 2015 2016

17.7%17.7%17.7%17.7% 19.8%19.8%19.8%19.8% 21.7%21.7%21.7%21.7% 23.4%23.4%23.4%23.4% 24.8%24.8%24.8%24.8% 26.0%26.0%26.0%26.0%

CAGR = 12.2%CAGR = 12.2%CAGR = 12.2%CAGR = 12.2%

• Worldwide digital ad spending is projected to nearly double between 2011 and 2016, rising from $8.3 billion to $163 billion

• Globally, digital ad spending will represent nearly 20% of total media ad spending this year. It will grow to 26% of the total in 2016

• Marketers in North America will lead the global market in digital ad spending

Graph Source: eMarketer Estimates

Page 15: Global ad spend by vertical jan 2013

15

GlobalInternet’s share of total ad spending worldwide will jump from 19.8% in 2012 to 25.9% in 2016

Source: eMarketer – Total Media Ad Spending Worldwide, 2010-2016 and Digital Ad Spending Worldwide, 2010-2016

Online Ad Spend share of Total Media Spend, 2012 & 2016 (in Billions)

Online Advertising – Strongest Performing Ad Channel

2012201220122012

Total = $518.8 BillionTotal = $518.8 BillionTotal = $518.8 BillionTotal = $518.8 Billion

2016201620162016

Total = $628.2 BillionTotal = $628.2 BillionTotal = $628.2 BillionTotal = $628.2 Billion

OnlineOnlineOnlineOnline

$102.8 (19.8%)$102.8 (19.8%)$102.8 (19.8%)$102.8 (19.8%)

OnlineOnlineOnlineOnline

$163.0 (25.9%)$163.0 (25.9%)$163.0 (25.9%)$163.0 (25.9%)

OtherOtherOtherOther

$416.0 (80.2%)$416.0 (80.2%)$416.0 (80.2%)$416.0 (80.2%)

OtherOtherOtherOther

$465.2 (74.1%)$465.2 (74.1%)$465.2 (74.1%)$465.2 (74.1%)

Online Online Online Online

AdvertisingAdvertisingAdvertisingAdvertising

More Measurable

More Effective

More Time Spent

Graph Source: eMarketer Estimates

Page 16: Global ad spend by vertical jan 2013

16

GlobalNorth America & Western Europe dominate Online Ad Spend but APAC will surpass Western Europe

by 2016

Source: eMarketer – Emerging Markets in Asia-Pacific Propel Digital Ad Spend Growth in the Region, January 2013

Online Ad Spend Worldwide, By Region, 2010 & 2015 (in Billions)

2011

2016

2011 2016

North America $34.4 $59.8

Western Europe $25.0 $38.7

APAC $21.9 $48.6

Eastern Europe $2.9 $5.8

LATAM $2.5 $7.3

MEA $0.6 $2.9

• North America and Western Europe dominate

the world in online ad spending, but opportunity

for growth remains significant, particularly in the burgeoning digital advertising markets of Indonesia, Brazil, Argentina, India and China, which will help drive spending worldwide

• Asia-Pacific is catching up to North America and will surpass Western Europe by 2016, when Asia Pacific’s portion of online ad spending will be 48.6%—over 9 percentage points higher than Western Europe’s

Page 17: Global ad spend by vertical jan 2013

17

Asia-PacificIncreasing Online Population Drives Online Ad Spend

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Online Ad Spending & Growth, 2011-2016 (in Billions)

$21.9 $21.9 $21.9 $21.9

$27.3 $27.3 $27.3 $27.3

$32.5 $32.5 $32.5 $32.5

$37.7 $37.7 $37.7 $37.7

$43.0 $43.0 $43.0 $43.0

$48.6 $48.6 $48.6 $48.6

2011 2012 2013 2014 2015 2016

16.2%16.2%16.2%16.2% 18.7%18.7%18.7%18.7% 20.6%20.6%20.6%20.6% 22.3%22.3%22.3%22.3% 23.9%23.9%23.9%23.9% 25.4%25.4%25.4%25.4%

CAGR = 15.5%CAGR = 15.5%CAGR = 15.5%CAGR = 15.5%

• Asia-Pacific will push past Western Europe to become the region with the second highest digital ad expenditures in 2013, driven by rapid growth in Indonesia, India and China

• The fastest growth in spending will come from the emerging markets of Indonesia, India and Mexico—though that growth is coming from a relatively small base of spending

Graph Source: eMarketer Estimates

Page 18: Global ad spend by vertical jan 2013

18

Online Ad Spending, 2011-2016 (in Billions)

$25.0 $25.0 $25.0 $25.0 $27.7 $27.7 $27.7 $27.7

$30.7 $30.7 $30.7 $30.7 $33.8 $33.8 $33.8 $33.8

$36.3 $36.3 $36.3 $36.3 $38.7 $38.7 $38.7 $38.7

2011 2012 2013 2014 2015 2016

Western EuropeOnline Ad Spending to Grow at a CAGR of 9%

20.9%20.9%20.9%20.9% 23.0%23.0%23.0%23.0% 24.9%24.9%24.9%24.9% 26.7%26.7%26.7%26.7% 28.1%28.1%28.1%28.1% 29.5%29.5%29.5%29.5%

CAGR = 8.7%CAGR = 8.7%CAGR = 8.7%CAGR = 8.7%

• Even as Western Europe loses share to other

regions, their total media spending per person

(along with North America’s) throughout eMarketer’s forecast period will remain higher than those of other regions

• Western Europe also boasts the second highest regional levels of digital ad spending per internet user, at $112 this year growing to $133 by 2016

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 19: Global ad spend by vertical jan 2013

19

Online Ad Spending & Growth, 2011-2016 (in Billions)

$0.6 $0.6 $0.6 $0.6 $0.9 $0.9 $0.9 $0.9

$1.3 $1.3 $1.3 $1.3

$1.8 $1.8 $1.8 $1.8

$2.3 $2.3 $2.3 $2.3

$2.9 $2.9 $2.9 $2.9

2011 2012 2013 2014 2015 2016

Middle East-AfricaImproving Infrastructure & Mobile Phones Aid Growth in Online Ad Spend

3.7%3.7%3.7%3.7% 5.1%5.1%5.1%5.1% 7.0%7.0%7.0%7.0% 9.2%9.2%9.2%9.2% 11.1%11.1%11.1%11.1% 13.3%13.3%13.3%13.3%

CAGR = 35.4%CAGR = 35.4%CAGR = 35.4%CAGR = 35.4%

• As a percent of total ad spending, Middle East

and Africa’s digital spending is just 7% of all ad

dollars going toward digital media• eMarketer expects this percentage to nearly

double by 2016, but the region will still be far behind the near-30% of ad spending devoted to digital in Western Europe and North America

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 20: Global ad spend by vertical jan 2013

20

Online Ad Spending & Growth, 2011-2016 (in Billions)

$2.5 $2.5 $2.5 $2.5

$3.4 $3.4 $3.4 $3.4

$4.2 $4.2 $4.2 $4.2

$5.3 $5.3 $5.3 $5.3

$6.3 $6.3 $6.3 $6.3

$7.3 $7.3 $7.3 $7.3

2011 2012 2013 2014 2015 2016

Latin America

Annual Value of Online Ads to Double by 2015

7.9%7.9%7.9%7.9% 9.7%9.7%9.7%9.7% 10.9%10.9%10.9%10.9% 12.4%12.4%12.4%12.4% 13.4%13.4%13.4%13.4% 14.1%14.1%14.1%14.1%

CAGR = 21.2%CAGR = 21.2%CAGR = 21.2%CAGR = 21.2%

• Latin America will post above-average double-digit growth through 2016, while growth in North America and Western Europe will remain robust but more moderate

• Latin America is second only to the Middle East and Africa as the fastest-growing digital ad market in the world

• Between 2012 and 2016, digital ad spending will climb from 9.7% to 14.1% of total media ad

expenditures in Latin America. The share of digital ad spending in Mexico will double within the next four years, rising from 11.9% to 22.1%

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 21: Global ad spend by vertical jan 2013

MOBILE

ADVERTISING

Page 22: Global ad spend by vertical jan 2013

22

GlobalNorth America & Western Europe Drive Mobile Advertising

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Mobile Ad Spending & Growth, 2011-2016 (in Billions)

$4.1 $4.1 $4.1 $4.1

$8.4 $8.4 $8.4 $8.4

$13.6 $13.6 $13.6 $13.6

$20.3 $20.3 $20.3 $20.3

$28.5 $28.5 $28.5 $28.5

$36.9 $36.9 $36.9 $36.9

2011 2012 2013 2014 2015 2016

105.8105.8105.8105.8

%%%%61.6%61.6%61.6%61.6% 49.5%49.5%49.5%49.5% 40.2%40.2%40.2%40.2% 29.6%29.6%29.6%29.6%

CAGR = 44.7%CAGR = 44.7%CAGR = 44.7%CAGR = 44.7%

• Worldwide mobile ad spending will reach $13.6

billion this year

• Rapid mobile internet adoption combined with the continued development of mobile ad networks and greater choice of mobile ad formats will significantly enhance how marketers use mobile to engage consumers, especially in the more advanced advertising economies of North America and Western Europe

• By 2016, investments in mobile advertising will nearly triple to $36.9 billion

Graph Source: eMarketer Estimates

74.6%74.6%74.6%74.6%

Page 23: Global ad spend by vertical jan 2013

23

GlobalMobile Ad Spending Rising Quickly Driven by Developments in Device & Mobile Web Adoption

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Mobile Ad Revenues Worldwide, By Region, 2011 & 2016 (in Millions)

2011

2016

2011 2016

Asia-Pacific $1,895.6 $6,191.6

North America $1,261.7 $21,391.7

Western Europe $845.0 $8,389.5

Rest of the World $82.5 $900.6

• eMarketer predicts that worldwide mobile advertising revenues will grow over nine-fold

between 2011 and 2016, increasing from $4

billion to nearly $37 billion• Asia-Pacific previously had the largest mobile ad

expenditures worldwide, primarily due to advanced mobile advertising markets in Japan and South Korea

• However, consumers are rapidly adopting smartphones and tablets in the US, and marketers there are taking advantage of growing mobile ad opportunities. In 2015, an expected rise in mobile ad investments in Western Europe will push Asia-Pacific to third place

$36,873.3 Million$36,873.3 Million$36,873.3 Million$36,873.3 Million

$4,084.8 Million$4,084.8 Million$4,084.8 Million$4,084.8 Million

Page 24: Global ad spend by vertical jan 2013

24

Asia-PacificJapan, China & India Experience Significant Growth in Mobile Ad Spend

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Mobile Ad Spending & Growth, 2011-2016 (in Billions)

$1.9 $1.9 $1.9 $1.9

$2.7 $2.7 $2.7 $2.7

$3.4 $3.4 $3.4 $3.4

$4.3 $4.3 $4.3 $4.3

$5.3 $5.3 $5.3 $5.3

$6.2 $6.2 $6.2 $6.2

2011 2012 2013 2014 2015 2016

40.0%40.0%40.0%40.0% 28.6%28.6%28.6%28.6% 26.4%26.4%26.4%26.4% 23.2%23.2%23.2%23.2% 16.5%16.5%16.5%16.5%

CAGR = 23.6%CAGR = 23.6%CAGR = 23.6%CAGR = 23.6%

• Asia-Pacific previously had the largest mobile ad expenditures worldwide, primarily due to Japan and South Korea’s advanced mobile advertising markets

• However, with the US adoption of smartphones and tablets, North America will surpass Asia-Pacific this year by $3.9 billion

• Mobile ad expenditures in Asia-Pacific grew at a slower pace due to the mobile ad economies already in place in the region

• By 2016, mobile ad spending in Asia Pacific will total $6.2 billion, driven by a surge in growth in China, India and Indonesia. Japan’s share is expected to drop to 43.1% at that time due to China’s dramatic expansion in the region

Graph Source: eMarketer Estimates

45.6%45.6%45.6%45.6%

Page 25: Global ad spend by vertical jan 2013

25

Western EuropeLeads the Way in Mobile Advertising

Mobile Ad Spending & Growth, 2010-2015 (in Billions)

$0.8 $0.8 $0.8 $0.8

$1.6 $1.6 $1.6 $1.6

$2.7 $2.7 $2.7 $2.7

$4.3 $4.3 $4.3 $4.3

$6.4 $6.4 $6.4 $6.4

$8.4 $8.4 $8.4 $8.4

2011 2012 2013 2014 2015 2016

95.0%95.0%95.0%95.0% 66.0%66.0%66.0%66.0% 57.0%57.0%57.0%57.0% 48.0%48.0%48.0%48.0% 32.0%32.0%32.0%32.0%

CAGR = 50.2%CAGR = 50.2%CAGR = 50.2%CAGR = 50.2%

92.0%92.0%92.0%92.0%

• Western Europe’s developed economies and high smartphone usage will help push advertisers in the region to allocate larger portions of their budgets toward mobile through 2016

• Across Western Europe, mobile’s share of digital ad spending will climb to 22% in 2016 from 6% in 2012

• By 2016, 28% of digital ad spending in the UK will be devoted to mobile advertising, while more than 18% of total digital dollars in Denmark, Germany, Italy and Norway will come from mobile

Graph Source: eMarketer Estimates

Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013

Page 26: Global ad spend by vertical jan 2013

AD SPEND BY

SECTOR

Page 27: Global ad spend by vertical jan 2013

Global Sector: Overall Change

Source: Nielsen Global AdView Pulse Q3 2012

Page 28: Global ad spend by vertical jan 2013

Global Category Share of Spend YTD 2012

Source: Nielsen Global AdView Pulse Q3 2012

Page 29: Global ad spend by vertical jan 2013

29

Internet – Global Trend by SectorTelecommunications Sector has grown the most followed by Media, Automotive & FMCG

Sectors - % Change Year to Date,2011 - 2012

6%6%6%6%

2%2%2%2%

4%4%4%4%

----4%4%4%4%

4%4%4%4%4%4%4%4%

6%6%6%6%

----11111111%%%%

1%1%1%1%

6%6%6%6%

7%7%7%7%

5%5%5%5%

Source: Nielsen Global Ad View Pulse, Q3 2012

Page 30: Global ad spend by vertical jan 2013

Top 20 Global Spenders YTD 2012

Source: Nielsen Global AdView Pulse Q3 2012

Page 31: Global ad spend by vertical jan 2013

Top Categories by Region: Europe and Asia-Pacific

Asia-PacificEurope

Source: Nielsen Global AdView Pulse Q3 2012

Page 32: Global ad spend by vertical jan 2013

Top Categories by Region: Latam and Middle East/Africa

Latin America Middle East/Africa

Source: Nielsen Global AdView Pulse Q3 2012

Page 33: Global ad spend by vertical jan 2013

33

Internet – Global Trend by SectorFMCG & Entertainment Sectors Spend Online

Source: Nielsen Global Ad View Pulse, Q3 2012

Sectors - % Share of Spend, 2011 & 2012

13.713.713.713.7

4.74.74.74.7

11111111

9.99.99.99.911.211.211.211.2

10.410.410.410.4

11.711.711.711.7

1.51.51.51.5 10.910.910.910.9

4.54.54.54.5

9.99.99.99.9

8.08.08.08.0

3.33.33.33.3

5.25.25.25.2

4.94.94.94.9

11.711.711.711.7

5.35.35.35.3

25.125.125.125.1

9.99.99.99.9

11.211.211.211.27.57.57.57.5

5.75.75.75.7

Automotive

Clothing & Accessories

Distribution Channels

Durables

Entertainment

Financial

FMCG

Healthcare

Industry & Services

Media

2011201120112011 2012201220122012

• FMCG, Entertainment and

Industry and Services Sectors spend the most on online advertising.

• The Healthcare Sector has

grown the most, sharing 9.9% of the total spend in 2012 from 1.5% in 2011.

Page 34: Global ad spend by vertical jan 2013

US Ad Spend

Page 35: Global ad spend by vertical jan 2013

Top US Product Categories & Digital Ad Revenues

Page 36: Global ad spend by vertical jan 2013

US: At $15.41 billion, Google’s ad revenue alone will account for 41.3% of total digital ad revenues in 2012

Page 37: Global ad spend by vertical jan 2013

Mobile Ad Spending Trends

Mobile Ad Spending Methodology

Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms, and consumer mobile usage trends.

Mobile ad spending in North America to grow to $21.4 billion by 2016, a three-fold increase from 2013

Page 38: Global ad spend by vertical jan 2013

US: Top 10 Advertisers in Internet Paid Search

Grand Total

(000)

Top 10 Advertisers

Ask.com $ 200,085.40

NOT ITEMIZED-INTERNET SITES NEC* $ 132,111.10

Amazon $ 91,684.40

AT&T $ 84,089.50

Microsoft $ 64,969.10

University of Phoenix $ 61,887.20

Verizon $ 41,225.10

State Farm $ 39,714.60

Home Depot $ 39,508.90

Target Discount Department Store $ 39,050.50

Source: Kantar Media, Stradegy, YTD 2012 (Jan-Nov)* Not-Itemized advertising does not receive a specific Brand. Examples of this

include the following: Classified Ads and advertising in directories including Schools & Camps, Financial, Kennels, Game Breeders, Where-To-Go, Real

Estate, Restaurants, Hotels & Resorts, Postage Stamps & Coins, Business Propositions, etc.

Page 39: Global ad spend by vertical jan 2013

US: Top 10 Advertisers in Online Video

US OnlineVideo Units

Top 10 Advertisers

AT&T 6,473

Charles Schwab 6,317

Franklin Templeton 5,852

Verizon 5,146

GorillaTrades.com 4,598

Kmart Discount Department Store 4,570

Goldman Sachs & Co. 3,298

Fisher-Price 3,259

Paramount Pictures 3,160

Dodge 3,107

Source: Kantar Media, Stradegy, YTD 2012 (Jan-Nov)

US Online Video Methodology

Kantar Media began video ad collection in 2007 using a spider technology. The spider is compatible with all digital pre, mid and post roll video formats and media players.

A spider is directed to a specific site entry URL, and navigates its way from there through the site. As it visits web pages, the spider performs several processes in real time:

1) Identifies video content originating from ad servers

2) Digitizes the audio/visual content and creates signatures

3) Matches known videos

4) Detects new videos

Page 40: Global ad spend by vertical jan 2013

Appendix

Page 41: Global ad spend by vertical jan 2013

European Online Display Spending Is Set To Rise

December 2011 “Western European Online Display Advertising Forecast, 2011 To 2016”