Iab europe adex3rd june national iab

BRANDINGONLINE:THETIMEISNOW2‐3June2010

Ad Ex 2009 Internet advertising spending in

Europe


Agenda

•  Toplinefigures•  Methodology•  Keytrends


Topline Figures


The Results

14.7 billion euros


Key facts and figures

•  €14.7bnmarketcomparedto€16.2bnintheUS

•  Growing+4.5%like‐for‐like,aslow‐downfrom+20%in2008•  Butstilloutperformingallothermediacategories

•  Internetnowcontributes18%toallmediaadspend


13.06 14.70

0

2

4

6

8

10

12

14

16

2008 2009

Internet adspend in €bn

A like-for-like growth rate of 4.5% •  At constant country sample (19 countries of 2008) •  At constant exchange rate

+4.5% (like-for-like)


Europe catches up with the US as the US market declined in 2009

13.06 14.70

16.83 16.26

0 2 4 6 8

10 12 14 16 18

2008 2009

Total online ad spend Europe vs. USA (€bn)

Europe USA

Source for USA data: IAB/PWC


Methodology


Our European coverage now includes 23 countries Four new countries added in 2009

•  Austria •  Belgium •  Bulgaria* •  Croatia •  Denmark •  Finland •  France •  Germany •  Greece •  Hungary •  Italy

•  Netherlands •  Norway •  Poland •  Russia* •  Romania •  Slovenia •  Slovakia* •  Spain •  Sweden •  Switzerland* •  Turkey •  UK

*New in 2009


Comparing “apples to apples”

RATECARD

Campaigns x Ratecard

GROSS

Revenue Billed

NET

Revenue Billed No Agency commissions


Key challenges to ensure comparability

•  FairGrossvalue•  Categoryrepresentation

•  Display•  Search•  Classifieds&Directories•  Other

•  Exchangerateadjustmentsataconstantrate


Key Trends


Formats: Search strengthens lead with 46% share

30%

23%

46%

1%

2009 internet adspend by segment

Display Classifieds/Directories Paid Search Other


Formats: Search drives growth during recession

Note: Like-for-like growth is calculated excluding the new submissions (Bulgaria, Slovakia, Switzerland and Russia) for which no data was available in 2008.

0.3%

-1.4%

10.8%

4.5%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Display Classifieds Search Total

Growth of formats in 2009 (like-for-like)


4,366 3,420

6,733

182 0

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

2009

Internet adspend in €m

Display Classifieds/Directories Search Other

Formats: Search nears €7bn


Markets: The top 6 countries make up 76% of the total

€ 374

€ 390

€ 455

€ 635

€ 800

€ 798

€ 1,731

€ 2,939

€ 3,834

€ 384

€ 401

€ 467

€ 514

€ 683

€ 815

€ 849

€ 1,760

€ 3,092

€ 4,011

€ 0 € 500 € 1,000 € 1,500 € 2,000 € 2,500 € 3,000 € 3,500 € 4,000 € 4,500

Denmark

Norway

Sweden

Russia

Spain

Netherlands

Italy

France

Germany

UK

Online ad spend by country 2008 vs. 2009 (€m)

2009

2008


Markets: contrasting trends among emerging markets

14% 13%

12%

7% 7% 6% 5%

5% 4% 3% 3% 2% 2% 2% 2% 1%

-3% -5%

-5%

0%

5%

10%

15%

20%

Gre

ece

Aus

tria

Pola

nd

Turk

ey

Spai

n

Hun

gary

Italy

Ger

man

y

Bel

gium

Finl

and

UK

Swed

en

Fran

ce

Den

mar

k

Net

herla

nds

Slov

enia

Nor

way

Cro

atia

Rom

ania

Total growth by country from 2008 to 2009 49%


-5% to 0%

0% to +5%

+5% to +10%

+10% and above Online adspend growth 2009

Markets: contrasting trends among emerging markets


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0% 5% 10% 15% 20% 25% 30% 35%

Year

-on-y

ear

gro

wth

2009

Online Market Share*

Austria Poland

Italy

Slovakia Romania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

Austria Poland

Italy

Slovakia Romania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

Austria Poland

Italy

Slovakia Romania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

Austria Poland

Italy

Slovakia Romania

Croatia

Norway

Netherlands

Denmark

Slovenia

Spain Hungary

France

Finland

Belgium

Sweden

Greece

Turkey

Germany

UK

48%

Market: Growth and maturity

*Calculated using Screen Digest Advertising Intelligence data which incorporates TV, print, radio, outdoor and cinema advertising


Thank you

•  FormoreinformationpleasecontactCatherineBorrel,[email protected]

Business

Iab europe adex3rd june national iab