november 2017 author: daniel knapp, ihs markit - iab slovakia · iab europe and ihs markit. all...
TRANSCRIPT
November 2017
Author: Daniel Knapp, IHS Markit
The data and charts shown in this report cannot be reproduced without the expressed permission of IAB Europe and IHS Markit. All data & analysis must be quoted as “IAB Europe & IHS Markit”.
About the study
A meta-analysis of online ad spend in Europe
RATECARD
Campaigns x Ratecard
GROSS
Spend Billed
NET
Revenue Billed No Agency commissions
About the data
The content of this analysis is informed by:
1. Reported H1 2017 data from local IABs where available (12 of the 27 countries covered)
2. Estimates by local IABs based on local insight, in collaboration with IHS Markit
3. Estimates by IHS Markit based on the IHS Markit Advertising Intelligence Service to:
a) Fill coverage gaps and add granularity to the data provided by 13 IABs
b) Provide data for markets where H1 2017 data was not available from IABs
4. Harmonisation of all reported data to ensure like-for-like comparison across markets
This is an interim update of the full year IAB Europe & IHS Markit AdEx Benchmark Report to provide nearer-term data on 2017 trends and facilitate understanding and decision-making in the European online advertising market.
All data refers to ’Total Europe’ based on the 27 countries on the next slide, unless mentioned otherwise.
Data for 27 countries in Europe
• 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
Big Picture
Europe: the value of online advertising in H1 2017
€22.5bn
20.2
22.5
0
5
10
15
20
25
H1 2016 H1 2017
Online advertising spend in Europe (€bn)*
Online advertising grew by 11.5% in H1 2017
+11.5% like-for-like
Source: IAB Europe & IHS Markit
€2.3bn added in H1 2017 across 3 formats: display grows fastest, search maintains lead, classifieds & directories relatively slower
7.4 8.4
3.2 3.4
9.5 10.7
0
5
10
15
20
25
H1 2016 H1 2017
Online Ad Spend by Format
(€bn)
Display Classifieds & Directories Search
1.0
0.1
1.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Display Classifieds &
Directories
Search
Net Additions by Format (€bn)
H1 2016 H1 2017 net additions
36.8% 37.3%
16.0% 14.9%
47.2% 47.8%
0%
20%
40%
60%
80%
100%
H1 2016 H1 2017
Share of Total by Format
Display Classifieds & Directories Search
2.3
Source: IAB Europe & IHS Markit
6.1 6.7
1.3
1.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
H1 2016 H1 2017
Display by Format (€bn)
Non-Video Display Video
82.8% 80.1%
17.2% 19.9%
0%
20%
40%
60%
80%
100%
H1 2016 H1 2017
Share of Display Total
Non-Video Display Video
9.5%
30.5%
0%
5%
10%
15%
20%
25%
30%
35%
Non-Video
Display
Video
H1 2017 Growth by
Display Format
Online video reaches 20% of total display spend as it grows 3.2x faster than non-video display to €1.7bn in H1 2017
Source: IAB Europe & IHS Markit
Non-Video
Display
30.4%
Video
6.3%
Classifieds &
Directories
16.0%
Search
47.2%
H1 2016
Non-Video Display Video Classifieds & Directories Search
Non-Video
Display
29.9%
Video
7.4%
Classifieds &
Directories
14.9%
Search
47.8%
H1 2017
Non-Video Display Video Classifieds & Directories Search
€20.2bn €22.5bn
Total Display: 36.8%*
Total Display: 37.3%
*share of total display slightly higher than sum of sub-formats due to rounding
The expansion of video drives the share gains of total display
Source: IAB Europe & IHS Markit
Mobile ad spend reaches nearly €7bn in H1 2017
2.3 2.5
4.8
3.3 3.4
6.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Mobile Display Mobile Search Total Mobile
Mobile Ad Spend (€bn)
H1 2016 H1 2017Note: (1) Mobile display is excluding Belgium, Greece, Slovakia, Slovenia, Switzerland. (2) Mobile search is excluding Belgium, Bulgaria, Croatia, Denmark, Finland, Greece, Netherlands, Norway, Romania, Slovakia, Slovenia, Switzerland. (3) Total may not exactly correspond to subcategories due to rounding.
Source: IAB Europe & IHS Markit
Nearly all growth in online ad spend is on mobile: desktop display investments are shrinking, desktop search grows at single digit rate
45.9%
-1.4%
37.2%
4.1%
41.4%
2.3%
-10%
0%
10%
20%
30%
40%
50%
Mobile Display Desktop Display Mobile Search Desktop Search Mobile Total Desktop Total
Online Ad Spend Growth by Format & Device (H1 2017)
Source: IAB Europe & IHS Markit
More than 1/3 of online ad spend is on mobile in H1 2017
30.3% 39.0%
69.7% 61.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H1 2016 H1 2017
Display
Mobile Desktop
29.8% 36.2%
70.2% 63.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H1 2016 H1 2017
Search
Mobile Desktop
30.0% 37.4%
70.0% 62.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H1 2016 H1 2017
Total
Mobile DesktopNote: shares based on extrapolation of mobile data to all countries
Sh
are
of
form
at
Sh
are
of
form
at
Sh
are
of
form
at
Source: IAB Europe & IHS Markit
Growth in context: mobile & video fuel the online ad market
-1.4%
2.3%
4.1%
4.2%
9.5%
11.5%
12.8%
13.1%
30.5%
37.2%
41.4%
45.9%
-10% 0% 10% 20% 30% 40% 50%
Desktop Display
Desktop Search
Total Desktop
Classifieds & Directories
Non-Video Display
Total
Search
Total Display
Video
Mobile Search
Total Mobile
Mobile Display
Growth by Format & Device H1 2017
Source: IAB Europe & IHS Markit
Non-Video
Display
28.7%
Video
7.6%
Classifieds &
Directories
15.4%
Search
48.3%
Western Europe (WE)
Non-Video
Display
37.8%
Video
6.1% Classifieds &
Directories
11.7%
Search
44.5%
Central & Eastern Europe (CEE)
Regional comparison of online ad spend by format
Total Display: 36.3%*
Total Display: 43.9%* €19.5bn
€3.0bn
H1 2017 H1 2017
Source: IAB Europe & IHS Markit
Mobile exhibits similar trajectories in WE & CEE
2.1 2.2
4.3
3.0 3.0
6.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Mobile Display Mobile Search Total Mobile
Western Europe (WE): Mobile Ad
Spend (€bn)
H1 2016 H1 2017
0.2
0.3
0.5
0.3
0.4
0.7
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Mobile Display Mobile Search Total Mobile
Central & Eastern Europe (CEE):
Mobile Ad Spend (€bn)
H1 2016 H1 2017Note: (1) Mobile display is excluding Belgium, Greece, Slovakia, Slovenia, Switzerland. (2) Mobile search is excluding Belgium, Bulgaria, Croatia, Denmark, Finland, Greece, Netherlands, Norway, Romania, Slovakia, Slovenia, Switzerland. (3) Total may not exactly correspond to subcategories due to rounding.
Source: IAB Europe & IHS Markit
Outlook to full year 2017
0
5
10
15
20
25
30
35
40
45
50
2016 2017
2017 Forecast
H1 H2
~€46bn
48.1% 51.9%
Relative weight of 2016 online
ad spend
H1 H2
• In a stable macro-environment, H1 typically has marginally lower weight in terms of its contribution to full-year online ad spend.
• H2 is fueled by the traditionally important Q4 Christmas business.
• Assuming a slight slow-down in H2 growth to 10%, we estimate the 2017 market to arrive at in the region of €46bn.
• Factoring in measurement artifacts*, full-year growth for 2017 is likely to be between 9.5% and 11%.
* (1) Only a minority of national IABs report half-year data, and
often less granular than their full year reports; (2) We need to rely on estimates and our proprietary
database to a higher degree instead; (3) Measurement methods & survey scope of national IABs
may change for full year 2017.
Source: IAB Europe & IHS Markit
Appendix: reported and estimated data by market (H1 2016 / H1 2017)
Partial or full data reported by local IABs:
• Denmark
• Finland
• France
• Germany
• Ireland
• Netherlands
• Norway
• Poland
• Russia
• Slovakia
• Spain
• Sweden
• Turkey
• UK
Estimated / modelled data:
• Austria
• Belarus
• Belgium
• Bulgaria
• Croatia
• Czech Republic
• Greece
• Hungary
• Italy
• Romania
• Serbia
• Slovenia
• Switzerland
Contact: Alison Fennah – [email protected] Marie-Clare Puffett – [email protected] Daniel Knapp – [email protected] Connect with us: @IABEurope IAB Europe
www.iabeurope.eu www.technology.ihs.com
@IHS4Tech