iab report on online ad spend the netherlands h1 2013 · 2020-02-14 · iab report on online ad...

IAB report on Online Ad Spend The Netherlands H1 2013

September 2013

interactiveadvertisingbureau

IAB report on Online Ad Spend The Netherlands H1 2013 2

Introduction and summary


This edition relies on data supplied by 36 companies. This broad coverage of the Dutch market has given us the opportunity to gain a thorough insight into current market developments.

This is the fourth year IAB and Deloitte are publishing the online advertising spend report for The Netherlands. On the previous report we received positive response from the community and the current edition – which covers 2013 H1 – has continued the trend of wide industry coverage.

Introduction

“I am delighted to see that we have managed to retrieve more information on the Search category. Since this has become over 50% of the entire market spend it is crucial to this report and I am looking forward to feedback from our readers. I am confident that over the next period we will also be able to report more on other important categories which are becoming increasingly important, such as Social Ads. ”

Emile van den BergIAB | Research & Standards

Joris van HeukelomIAB | Chairman

“Online Advertising is in transition. Traditional display advertising is automated, bringing efficiencies to the medium and lower prices for advertisers. Growth in mobile, video and interruptive formats shows the increasing capacity to attract advertising budget from the big brands. Despite tough economic circumstances for advertising in general, the future for online advertising looks bright.”

Roel van RijsewijkDeloitte Digital | Partner

“I am pleased to see that mobile finally is showing strong substantial growth. I expect even a doubling of revenue's in the coming years based on mobile marketing initiatives. Next to that, we can be happy to conclude that in a stagnating economy since 2007, Digital Markting is still a relatively fast growing industry. Focussing on the underlying figures, it is particular to see that locale digital mediaplayers have a much slower traction than the international players. Local player should act swiftly with more innovatie and commercial powered answers to certain signals of the market.”


Our methodology

Publication

Estimation

Conversation

Validation

Collection

For areas not covered by data supplied by participants, we make an estimate based on previous figures, desk research, expert opinions, industry databases and mathematical modeling

Deloitte collected data from 36 participants covering a representative sample of the market

Final findings are cross-referenced and validated with respondents

All findings are presented to the IAB and industry participants

Initial findings are verified with industry experts, media buyers, and selected publishers

Survey methodology• Our current survey is

based on 36 participating companies

• Figures are adjusted for double counting, based on information provided by the survey participants

• The figures are drawn up on the basis of company declarations and have not been verified by Deloitte

• For affiliate marketing, our estimates are based on survey respondents as well as estimates provided by other external sources including Affliateblog.nl


Executive summary

“After the stagnation in H1, the outlook for H2 is positive. The upward trend is expected to continue due to developments in the relative "newer" markets, such as Mobile, Video and Automated Trading. This will contribute to further increase of the total Online Ad Spend.”

The Dutch online advertising market was €619min H1 2013, a H/H growth of 5,8%. This growth is mainly driven by 12,3% growth of Google related revenues.

The spend on display and classifieds, directories and listings stagnated with a decrease of -2,3% and -1,0% respectively.

Interruptive and video formats gain ground against the traditional embedded formats.

Automated trading is growing with high rates in the Netherlands and is fast becoming the dominant channel for selling add impressions.

Moving forward, respondents expect the display advertising market to return positive growth at 6% in 2014. Our data reflects this development by showing a strong comeback ofdisplay advertising in Q2 which is expected to continue in H2.

Ad revenues generated by Dutchpublishers through their mobile websites and in-app advertising onsmartphones is starting to kick off as already seen in UK and US markets for the past years.



H1 2013 Results


+ 5,8%

Display

Search

Classifieds, directories and listings

H1 2012

€585

105

310

170

104

260

167H1 2013

€619m

88Google

Revenue by advertising category (€m)

Note: Search revenues is our estimation of all related revenues by Google and its competitors in The Netherlands. Search is corrected for double counting with display related revenue; The growth of each

markets is based on a like for like basis; Display is including direct e-mail; Classifieds, directories & listings is based on a limited number of data points.

Source: Survey respondents; Annual reports; Deloitte analysis

Search is the sole contributor to the growth of the online advertising market; Display and Classifieds show a small decline.

Online advertising market

On page 9 we will show for the first time a breakdown in the category Search. This catgory used to be an estimation of the total Google revenue in the Netherlands but from now on, an allocation of this revenue will be made towards Display (eg including Youtube, AdSense) and Search. In order to present a clear like to like comparison, this allocation is not yet fully applied on this page, only the total share of Google (88m) is shown.


Note: Embedded formats are for example traditional banners and skyscrapers

Source: Survey respondents, Deloitte analysis

Interruptive formats shows impressive growth at the expense of traditional embedded formats. Video shows progress after the recession in 2012.

Display advertising revenue per format

Display breakdown excluding Google revenue (results solely based on respondents)

H1 2013201220110

20

40

60

80

100

48%57%61%

14%14%12%

18%11%8%

10%

10%

8%

10%

9%

10%

OtherInterruptive formats

Textlinks (incl. AdSense)

Embedded formats

Video(excl. Youtube)

Joep Hutschemakers Marktplaats Media | Hoofd Media & Partnerships Marktplaats Zakelijk

“We see a growth in interruptive & integrated formats as it allows for even stronger focus on the consumer and provides even more value at all touch points, especially in combination with intent data.“


Note: Search revenues is our estimation of search related revenues by Google and its competitors in The Netherlands. Google related display revenues are based on estimations of the AdSense and

YouTube revenues in the Netherlands for H1 2013 and is corrected for double counting due to part of the AdSense revenue being shared.

Source: Survey respondents; Annual reports; Deloitte analysis

For the first time we allocated the Google revenue based on the different formats in which ads are served. In the past the estimation of the Google revenue was totally allocated to the category “Search”. This year we have made an estimation of the allocation of this broad category of Search in Display and a more narrow definition of Search. Going forward we can make trend analysis based on this allocation.

Search Allocation

“Allocation is based on estimations and analysis because we do not have the data. But the new definition of search and the allocation of part of this spend to display gives a much better representation of the categories and formats in the online advertising market.“

Other

Interruptive formats

Textlinks

Embedded formats

Video

H1 2013Display formats 49%

12%

11%

19%

9%

Classifieds, directories and listingsDisplay (excl. Google) SearchE-mail

104

260

167

255

H1 2013

€619m

88Google

Display advertising breakdown by format



Note: In-app only includes revenues from survey respondents and excludes revenues from players such as Google and Apple

Source: UK & US IAB Ad spend Study, Survey respondents, Deloitte analysis

Mobile & In-app is on the tipping point of kicking of. The Mobile market in the Netherlands follows the same trend as the UK and US market which have already shown high growth from 2011 and on, and will continue to grow.

Display advertising revenue per medium

”The mobile advertising spend is no way near its full potential, as the share of mobile screens that connect daily with our content network and media brands is already at a considerable size and constantly growing”

Remy van der WerfSanoma | Senior Business Analyst

Display advertising revenue per medium Breakdown Mobile website and In-app

Email

Website/browser

Mobile website & In-app

H1 2013

88.8%

4.6%

6.6%

Mobile website

In-app

1.4% 1.6%

3.9% 1.2% 1.6%

2.7%

2011 2012 H1 2013

Diederick UbelsMobile Professionals | Co-founder and General Manager

“It’s great to see that advertisers are recognizing the role of mobile more and more. We foresee that mobile advertising continues to grow as advertisers will increasingly achieve great results with mobile campaigns. We need to keep on testing and have to share more knowledge about mobile advertising in order to convince advertisers of the huge potential of mobile marketing.”


Note: In-app only includes revenues from survey respondents and excludes revenues from players such as Google and Apple

Source: UK & US IAB Ad spend Study, Survey respondents, Deloitte analysis

Mobile website and In app spend show the strongest growth. In the first category, Tablet gains share, while on the field of In app advertising, Smartphone becomes a more popular format.

Mobile display advertising market

Mobile display advertising revenue per device type

79% 70%

30%

2012 H1 2013

Mobile website

Tablet

Smartphone

56% 76%

44% 24%

2012 H1 2013

In-app

21%

The share of tablet in mobile website advertising spend is growing as it is better suited for display advertising.

Smartphone becomes the number one choice for in-app advertising spend.

Diederick UbelsMobile Professionals | Co-founder and General Manager

"The amount of tablet users in the Netherlands grew enormously the past couple of years. We are glad to see that this shift in consumer behavior is increasingly reflected in the way advertisers approach consumers. It’s important to make a clear distinction between smartphones and tablets, because both devices have totally different user context and usability traits and therefore demand a specific approach within mobile marketing."


“When comparing the mobile & in-app data from the Netherlands we see similar trends in the growth rate and mobile to in-app ratio as the UK and US market did two year ago. ”


Display advertising revenue per payment model


51% 51%

47%

19% 20% 21%

12%

15% 16%

9% 10% 11%

7%

3% 4%

2% 1% 1%

2011 2012 H1 2013

CPM

CPS

Fixed Fee

CPC

CPL

Other

Performance based payment models grow in H1 2013. The CPM payment model is showing a decrease, resulting in a minor increase for most other models.

Revenue per payment model

Janneke NiessenImprove Digital | Co-founder, CIO

We see a significant increase in CPM prices (~30%) if we compare stats of H1 this year and last year.”

Tim GeenenImprove Digital | VP Demand & Partnerships

“We are seeing a mixture of pricing types on single campaigns, due to the rise of the hybrid model. Advertisers can be billed on performance based metrics, while publishers are still paid on a CPM basis.”



Automated trading becomes dominant in impressions served in H1 2013 for Display. Revenue generated by automated trading continues to grow.

Automated Trading

Display advertising share of revenue served per mechanism

Display advertising share of impressions served per mechanism

29%

2012Revenue

Automated

71%

H1 2013Revenue

57%

2012Impressions

H1 2013Impressions

61%

39%

Manual

43%

46%54%


“When looking at the rate of which automated trading is growing in the Netherlands we expect that it will generate more revenue than traditional trading at the end of 2013”


Industries by revenue share H1 2013 Change with H1 2012

Note: Excluding classifieds, directories & listings, search and industry category other. Adjustment in H1 2012 data due to revised respondent data


Automotive and Jobs & recruitment have lost relative share in advertising spend, whilst Telecom, Retail and Consumer goods show the most growth.

Industries by revenue share H1 2013

Personal care 2.5%

Free time 2.7%

Public sector 3.2%

Fashion 3.9%

Retail 4.9%

Consumer goods 5.1%

Hardware & electronics 6.3%

ICT services 6.5%

Automotive 8.3%

Telecom 9.9%

Travel 10.2%

Financial services

-1.4%

0.9%

-1.3%

1.7%

-1.5%

-2.6%

0.4%

3.4%

-2.4%

0.6%

4.5%

-0.2% 13.0%

Personal care 1.7%

Leisure 2.0%

Public sector 2.8%

Fashion

4.7%

Retail

5.8%

Consumer goods

5.9%

Hardware & electronics

6.6%

ICT services

9.5%

Automotive 9.8%

Telecom 12.2%

Travel

11.8%

Financial services

-0.1%

-0.8%

Jobs & Recruitment 0.1%

Energy 1.5%

-3.5%

+0.1%

+0.8%

-1.1%

+0.3%

+0.8%

+3.0%

+0.5%

-3.4%

+1.1%

+1.7%

+0.6% 12.3%


Affiliate marketing

Source: Survey respondents, Affiliateblog.nl / Imbull BV, Deloitte analysis

Results affiliate marketing H1 2013 equals revenue H1 2012.

Jessica HaagmansAffilinet | Managing Director Nederland

“Due to the developments in the online and mobile market Affiliate networks are adjusting their service offering. Depending on the traditional affiliate network role is not enough to generate growth on the longer term. Besides strategies that are close to their current business, like specific focus on quality traffic or tracking mechanisms, networks also invest in and integrate technologies and services related to the trends in automated trading, mobile advertising and conversion attribution.”

2013

0%60

2012

H1

H2

60 60

71


Outlook


Respondents predict a 6% market growth in 2014.

Survey respondents growth expectations

* Growth expectation calculated by weighting responses with company revenue


“Companies expect a weighted growth rate of 6% in 2014. Companies show to be optimistic in the future, expecting own company growth rate to be 11% and slightly higher market expectations than last year.“


Revenue growth expectations

Low

Average

High

25%

20%

15%

10%

5%

0%

-5%

-10%

1

1

1

1

2

6

6

16

Number of respondents

Average* = 6%

Predicted %market growth

1

1

2

3

3

3

7

7

Low

Number of respondents

Average

> 40%

35%

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

High

Predicted %company growth

Average* = 11%5


Most respondents expect no impact on advertising revenue due to the cookie law.

Survey respondents cookie law expectations (weighted responses)

Note: Percentages based on responses weighted by respective company revenues

Source: Survey respondents; Deloitte analysis

“One year after the implementation of Cookie legislation in the Netherlands most respondents believe to be fully adjusted and that it can bear opportunities for the future.”

Cookie legislation

9%

91%

No impact

Increasing advertising revenue



Opposite to the current market behavior most respondents expect the CPM payment model to increase in share. Ad spend on mobile websites is expected to keep growing.

Weighted % of respondents growth expectations



CPM

CPC

CPS

Fixed Fee

37%

18%

34%

11%

Payment model

E-mail

In-app

Medium

65%

6%

27%Website/browser

2%

Mobile website

Video

Textlinks

Embedded

Display format

43%

8%

41%

4%

InterruptiveCPM

CPC

CPS

Fixed Fee

37%

18%

34%

11%

Payment model

E-mail

In-app

Medium

65%

6%

27%Website/browser

2%

Mobile website

Video

Textlinks

Embedded

Display format

43%

8%

41%

4%

Interruptive

Growth expectations 2014


Financial services is expected to grow; Most respondents expect travel to decline.

Weighted % of respondents growth expectations



Growth expectations 2014

46%

19% 14%

Top 3 Decline

Fina

ncia

l ser

vice

s

Trav

el

Trav

el

Tele

com

Con

sum

er g

oods

-57%

-16% -13%

Top 3 Growth

Aut

omot

ive


The Dutch display advertising market is expected to total around €340 million in 2013.

Display advertising (€m)


Display revenue forecast

“A recovery of the display market in the second half of 2013 is expected as the respondents show a strong growth of the display market in Q2 compared to Q1. Which translates into an estimate year to year growth of 0.6% for the display advertising market in the Netherlands.”


2012338m

+0.6%

H1170

H2168

2013340m

Realized Forecasted

H2173

H1167


Appendix


Definitions

Categories

• Display - Embedded formats (banners, buttons, skyscrapers etc) - Interruptive formats (rich media, over the page, page take-over etc) - Textlinks (incl. AdSense) - Video (pre-/mid-/ postroll) - Other uncategorized display advertising

• Online classifieds, directories & listings - B2B - B2C - C2C

Sales channels• Direct sales• Media agencies: E.g. GroupM, Omnicon Media Group, Havas, IPG, Aegis,

Publicis• Ad network/ ad exchange: E.g. Google exchange, Right Media Exchange• Agency trading desks: E.g. Xaxis, Acciem, Amnet, Vivaki• Sales house: E.g. WebAds, Adfactor, Semilo• Independent trading desks: E.g. Blue Mango, Yieldivision, Pervorm, Adlantic,• Bannerconnect

Payment models

• Fixed Fee: Payment model based on a fixed fee• CPM: Cost per Mille = Payment model where the advertiser pays per thousand

views• CPC: Cost per Click = Payment model based on the number of clicks on an

advertisement• CPL: Cost per Lead = Payment model that is based on the number of leads

generated. A lead is an online conversion where the consumer shares its contact details and indicates to be interested

• CPS: Cost per Sale = Payment model based on the number of sales generated


Methodology

Online advertising market

• 36companiesreportedtheirdatabasedonthequestionnaire

• Thefiguresaredrawnuponthebasisofsitedeclarationandhavenotbeenverified

• Whereverneededwehaveusedtoolssuchasregressionanalysistomakeestimations regarding issues like total advertising spend

• Basedontheinformationprovidedbysurveyparticipants,figureshavebeenadjusted for double counting

Search and classifieds market

• Duetolimitedavailabilityofcompanydatawehadtoestimatethemarketsizefor search and classifieds based on market data

• TogetherwiththeTaskforceSearchfromtheIABwedefinedthesearchmarketand estimated the market size

• Googleregulationsforbidcommentingonoursearchmarketestimates

• Theclassifiedsmarketisbasedonpublicavailablemarketestimates.Duetolimited data points, current classifieds market size could not be verified


Name of company

1 161Media

2 AD2ONE B.V.

3 Addurance

4 Adfactor

5 AdLantic Online Advertising

6 Affilinet Nederland B.V.

7 Be Viacom

8 Daisycon B.V.

9 FD Mediagroep

10 Funda Real Estate B.V.

11 HDC Media

12 IDG Nederland

13 Marktplaats Media

14 MediaScience

15 Microsoft

Name of company

16 Mobile Professionals B.V.

17 Nakko B.V.

18 NDC Mediagroep

19 NRC Media B.V.

20 Persgroep Advertising

21 Red Chocolate

22 RTL Nederland

23 Sanoma Media The Netherlands

24 SBS Broadcasting

25 Semilo

26 Smartclip Benelux BV

27 Spil Games

28 Ster

29 Telegraaf Media Groep

30 Tibaco Internet Media

Name of company

31 ToTwenty B.V.

32 Tradedoubler

33 Tweakers.net B.V.

34 WebAds Interactive Advertising

35 YD World

36 Zanox M4N

List of survey participants


Data sources

Company / Organization Website

1 CBS www.cbs.nl

2 Wakoopa www.wakoopa.nl

3 Google www.google.com

4 Imbull BV www.imbull.com

5 IMF www.imf.org

6 SPOT www.spot.nl

7 STIR www.stir.nl

8 Zenith Optimedia www.zenithoptimedia.com

9 Affiliate Blog www.affiliateblog.nl

10 RAB www.rab.fm

11 GroupM www.groupm.com


Suzanne PronkIAB NederlandTel: +31 (0)85 401 0802Email: [email protected]

Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB commissioned research and assisting IAB members with their research projects. Also responsible for shaping the IAB knowledge base so that it meets members' needs moving forward

Roel van RijsewijkDeloitte DigitalTel: +31 (0)6 52 615 087Email: [email protected]

Roel van Rijsewijk is a partner with Deloitte Digital with more than 10 years of experience in risk consulting for companies in the Technology, Media & Telecommunications (TMT) industry. Roel leads one of Deloitte’s main innovation projects on ethics and trust in a digital world

For questions concerning this research feel free to contact:

Contact details

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2013. For information, contact Deloitte Touche Tohmatsu Limited.

iab report on online ad spend the netherlands h1 2013 · 2020-02-14 · iab report on online ad...

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