iab review of uk mobile ad spend 2009
DESCRIPTION
IAB Review of Mobile Ad Spend 2009 in the UK where over 13m users now access the mobile web per month.TRANSCRIPT
IAB/PwC mobile ad spend study
April 27th 2010
In today’s presentation
1. Introduction
2. Methodology
3. The figures
4. Implications for advertisers
5. Outlook
6. Summary
7. Questions
1. INTRODUCTION
Jon Mew, Head of Mobile, IAB
Things started to get more interesting
Look smart
Smartphones reach inflection point in UK
• 24% of the UK now have smartphones +70% YoY
• Non-smartphones -10% YoY
• RIM grows faster than Apple (RIM up 215%) vs (Apple up 196%)
• UK has the fastest growth rate in Europe
Mobile internet usage is still growing
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
13,000,000
14,000,000
MAY 2006
JUL 2006
SEP 2006
NOV 2006
JAN 2007
MAR 2007
MAY 2007
JUL 2007
SEP 2007
NOV 2007
JAN 2008
MAR 2008
MAY 2008
JUL 2008
SEP 2008
NOV 2008
JAN 2009
MAR 2009
MAY 2009
JUL 2009
SEP 2009
NOV 2009
Source: Comscore 3 month rolling average
UK GDP dives to – 6% YOY in Q2 2009
GDP GrowthEconomy grows by 0.3% in Q4 2009
IPA Marketers’ Bellwether Q4 2009
Total budgets revised down for the 9th quarter in succession
Source: WARC
The ad market was hit hard in 2009
Total advertising market growth -12.6%
Year on year growth for 2009 (TV without sponsorship)
2009 saw the biggest decline in ad spend since records began
Source: WARC – based on current prices
2. METHODOLOGY
Eva Berg-Winters, PwC
The background…
• The IAB has been working with PwC since 1997 to survey the value of the online advertising market
• These figures have become the industry standard for measuring advertising spend
• This is the second year we have surveyed the mobile market
• Display figures are based on actual revenues submitted by the survey participants
• Figures are adjusted for double counting
• Display figures are not adjusted to account for organisations that have not participated
• Like-for-like growth rates only include revenues from companies that participated in both 2008 and 2009
• The display figures are drawn up on the basis of site declaration and have not been not verified
• Search figures are estimated based on modelling, industry estimates and views from IAB members and experts including: Orange, T-Mobile, O2, 3, Enders, Mobile Commerce, Isobar, OMD, PwC, GroupM
• Total advertising revenue is reported on a gross basis
Methodology
Mobile advertising definition
• Only media spend reported to ensure fair comparison to other media including
→ Display advertisingo Bannerso Pre/post roll and in gameo Other including advertising within
sms/mms→ Search
• Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues like app production
Banner ad
Pre/post roll
SearchIn SMS / MMS
Research participants
Thank you
3. THE FIGURES
Jon Mew, Head of Mobile, IAB
Total mobile market 2009
£37.6m
Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
Total mobile market 2009 vs 2008
+32.2% (like for like)
Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
2009 total mobile ad spend breakdown
Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
Total market £37.6m
(50%)
(41%)
(4%)
(4%) (1%)
(2008 % share figures)
Growth for most formats
Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
+ 26%
-47%+ 26%
+41%
+ 17%
2009 total mobile display breakdown
Source: IAB / PwC mobile display ad spend survey 2009
Total display £17.4m
(9%)
(82%)
(2008 % share figures)
(7%)(2%)
2009 display revenue by quarter
Source: IAB / PwC mobile display ad spend survey 2009
36%
Q4 - 36% higher than next nearest quarter
Every quarter showed growth
Source: IAB / PwC mobile display ad spend survey 2009
+28%
+10%+20%+36%
Source: PricewaterhouseCoopers / Internet Advertising Bureau
IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser and misc figures and covers 55% of mobile display revenues in 2009.
Industry sector display market shares
0.0%
0.1%
0.1%
1.2%
1.6%
1.7%
2.3%
2.5%
2.7%
3.2%
8.1%
14.7%
61.5%
Business and …
Gardening & …
Leisure Equipment
Electrical/Electronics
Retail
Travel & Transport
Computers
Motors
Government, …
Consumer goods
Finance
Telecomms
Entertainment & …
Based on 55% of total display ad spend
4. IMPLICATIONS FOR BRANDS IN 2010
Kieron Matthews, Marketing Director, IAB
“We’ve seen brands’ interest and confidence in mobile
increase rapidly over the past 6 months, we’re making it a
cornerstone of our activity as the time of mobile has already
arrived”
Oliver NewtonHead of Emerging Platforms
I-Level
“Despite the tough economic climate in 2009, we have seen many brands spending on mobile for the first time indicating the growing importance of
this channel in reaching a large engaged consumer audience with
the right message in the right place and at the right time”
Ed Laws
Director Yahoo! mobile marketplace, EMEA
Source: Comscore GSMA/MMM
£
Summary
1. Ensure that you have adequate, optimised content for the time users ‘could’ spend with you
2. Begin to develop m-commerce solutions – NOW
3. Ensure that your site/content is optimised for mobile
4. Think beyond the app
5. Ensure that your search is optimised for mobile, but make sure the content is there to click to
5. OUTLOOK
Outlook – continued growth expected
IABResults
+33%
6. SUMMARY
Already hitting the headlines
Key headlines
• Total market grows 32% despite worst year on record for advertising
• Entertainment and media spend dominates
• Consistent growth in every quarter year on year
• Very strong finish to year Q4 up 36%
• Positive indications for 2010 and still plenty of room for growth
Disclaimer
The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the mobile adspend figures collected by the IAB from its members in January through April 2009 and to deliver to the IAB the topline figures collated from this review; PwC has not verified the
information which it received from the IAB, and provides no opinion or other form of assurance with respect to such information.
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or
completeness of the information contained in this publication, and, to the extent permitted by law, neither the Interactive Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s contributors/subcontractors accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance
on the information contained in this publication or for any decision based on it.