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ì IAB Ireland PwC Online Adspend Study for 2013
Suzanne McElligott CEO, IAB Ireland April 30th, 2014
In association with:
Agenda
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Looking ahead…
7. Questions
1. Introduction
ì Census of all major Irish online media owners
ì Includes desktop and mobile adspend in Republic of Ireland
ì Information collected each half year
ì Analysis available by
ì Category (Display, Search and Classified)
ì Format (embedded, pre-roll / post-roll etc.)
ì Industry sector (FMCG, Finance, Telco etc.)
2. Study Methodology
ì Internationally, IAB has been working with PwC since 1997 to survey the value of online adspend in Europe and North America.
ì Our study includes data for 29 leading publishers, representing multiple websites.
ì 12 sales houses and ad networks also participated
ì All data was provided to PwC on a confidential basis. The data is prepared by PwC based on the figures provided by participants, which have not been verified or audited by PwC.
Publishers & Ad Networks / Sales House
ì AD2ONE, Adconion, Adforce, Brightroll, BSkyB, communicorp, Crimtan, Digi=ze New Media Ltd, Dis=lled Media, DoneDeal, eircom, Electric Media Sales, Empathy Marke=ng, Entertainment.ie, Facebook*, FCR Media (Goldenpages), Flashpoint, Google*, Gradireland, Homewise, i-‐Believe, Independent Digital, Irishracing.com, Landmark Media, Linkedin, Maximum Media, MailOnline / Evoke.ie, Media Brokers, MicrosoR Adver=sing, MyHome.ie, O2 Media, OnlineTradesmen.ie, Page7 Media, Rollercoaster.ie, RTÉ**, saongroup, Sheology, Specific Media, The Irish Times, Ticketmaster Ireland, TradeDoubler Ireland Ltd, Trader Media Group, TV3, TwiZer*, Yahoo!
*Based on data from leading agencies and Industry Reps ** RTÉ Annual Report 2012
Study Content
ì Total advertising revenue is reported on a gross actual basis (including agency commission)
ì The figures are drawn up on the basis of actual revenues submitted by the study participants
ì Data has been included for Google, Facebook and Twitter spend based on consultation with advertising agencies and industry representatives. RTÉ’s digital adspend as reported in 2012 Annual Report is also included.
ì IAB’s advisory council is comprised of Aegis Media, Core Media, Group M and Omnicom Media Group.
Digital Adspend
• Traditional online advertising viewed on a desktop PC or laptop, accessed via the Internet connection!
– Display advertising!– Search!– Classified!
Desktop:!
• Advertising that has been specifically tailored and served on a mobile device including tablet, accessed via 3G or wifi!
– Display advertising (including rich / non-rich formats, SMS, Social Media, in-app advertising etc)!
– Search!
Mobile / Tablet: !
IRELAND Consumer confidence up 8 points at an index of 77 in Q4 2013 Recessionary mind-‐set down at 87% (-‐6%pts versus Q3) 26% are opQmisQc about future job prospects (+9%pts versus Q3) A significant 40% are opQmisQc about their Finances (+11%pts versus Q3) While 29% are ready to spend (+5%pts versus Q3) Concerns and Spending IntenQons this Quarter vs. Last Biggest Concerns are Job Security (+2%pts), the Economy (unchanged) and Increasing UQlity Bills (-‐2%pts) 78% say they have changed household spending in order to save (-‐3%pts) Those with ‘no spare cash’ increases to 28% (+2%pts). While those ‘paying off debts’ and ‘puang into savings’ decrease to 23% and 29% respecQvely. A decrease to 67% (-‐10%pts) for those ‘switching to cheaper grocery brands’
Q4 2013 Nielsen Consumer Confidence
67% of us have switched to cheaper grocery brands
to save and 30% cut down on or buy cheaper brands of alcohol
53% feel jobs are hard to get
28% of us have no spare cash once we’ve covered essenQal living
expenses
29% say now is a good Qme to buy the things we want and
need
40% say their personal finances are good or excellent
If we have spare cash the majority save it or pay off debts
Job security, the economy and
increasing uQlity bills are our main
concerns
Q4 Nielsen Consumer Confidence
-‐1.4
-‐3.1
-‐1.9
11.4
-‐5.3
15.3
Grand Total
Press
TV
Outdoor
Radio
Cinema
€270m
Source: Nielsen All Media Spend 2013
% change other media adspend yoy 2013 v 2012 -‐ Nielsen
Nielsen 2013 Adspend in Other Media (Not including Digital)
€783m
€342m
€78m
€6.9m
€86m
Online is driving growth in Advertising market in Ireland
Source: Monitoring AdverQsing Expenditure in Ireland Q4 2013 (AAI / Nielsen)
2008-‐2013 -‐14.6% overall
-‐24.6% Tradi=onal +115% Online
0
100
200
300
400
500
600
Mar-‐08
Jun-‐08
Sep-‐08
Dec-‐08
Mar-‐09
Jun-‐09
Sep-‐09
Dec-‐09
Mar-‐10
Jun-‐10
Sep-‐10
Dec-‐10
Mar-‐11
Jun-‐11
Sep-‐11
Dec-‐11
Mar-‐12
Jun-‐12
Sep-‐12
Dec-‐12
Mar-‐13
Jun-‐13
Sep-‐13
Dec-‐13
(March 2008=100)
TradiQonal Online Linear (TradiQonal) Linear (Online)
Internet Usage
8 in 10 say technology posi=vely enhances their
rela=onships (eircom eHSS Report April 2014)
86% Of Adults in Ireland have
access to an Internet device that can be used ‘on the go’
eircom eHSS Report April 2014
Irish are spending 3 hours online per day for personal reasons – this figure is being
driven by increased smartphone & tablet ownership
(IAB Ireland / Red C: A Mobile Future November 2013)
37avg number of minutes spent viewing content on a device other than a TV set.
TAM Ireland Ipsos MRBI April 2014
What’s driving Online Adspend? Mobile
Smartphones ownership in Ireland ahead of other major european countries (WIN GIA GSMA Survey Jan 2013)
(IAB Ireland / Red C: A Mobile Future November 2013)
41% of smartphone users use them more for browsing online than for calls and
texts
13% of =me spent online on
smartphones is via apps (26 minutes
per day)
61% have a smartphone
40% Own a tablet compared to 25% 6 months ago eircom eHSS Report April 2014
What’s driving online adspend - Technology and Innovation
ì InnovaQon / Investment ì Rich Ad Formats – home page takeovers,
carousel, billboard, slider ì Increased adopQon of Video on Demand ì Mobile OpportuniQes ì More Retailers online ì Growth in ProgrammaQc Buying
ì 60% of MarkeQng Managers plan to increase budget allocated to digital MarkeQng in 2014. (MC Squared / Amárach)
4. IAB Ireland Online Adspend 2013
Desktop €163m
Mobile €34m
Gross Online Adspend €197m
Digital Media Mix (Desktop & Mobile) 2013
€96m
€73m
€28m Search 49%
Display 37%
Classified 14%
H1
0
50
100
150
200
2009 2010 2011 2012 2013
H1
Full Year
10% growth 2012 to 2013 - Desktop
Online Desktop Adspend 2009 – 2013 (like for like, excluding mobile)
Sources: IAB PwC Adspend Studies 2009-‐2013
H1 Full year
2009 €48m €97.2m
2010 €53.9m €110m
2011 €64.9m €132m
2012 €73.2m €148m
2013 €76.7m €163m
Desktop Digital Media Mix 2013 – Excluding Mobile
Breakdown by adverQsing format based on figures provided -‐ based on 100% of the overall total.
44% €71m
39% €64m
17% €28m
Search 44%
Display 39%
Classified 17%
Desktop Digital Media Mix 2012 – Excluding Mobile
Breakdown by adverQsing format based on figures provided -‐ based on 99% of the overall total.
45% (€66.6m)
34%
(€50.6m)
20% (€28.9m)
1%, (€2m)
Search
Display
Classified
Other (not allocated)
Display Breakdown (Desktop) 2013
Breakdown by adverQsing format based on figures provided -‐ 100% of display. %’s are rounded.
€32.5m
€8m
€7.5m
€6m
€5m
€2m €600k €2m
Embedded formats 51%
Social Media 13%
Pre/Post roll video 12%
Sponsorships and tenancy 9%
Interrup=ve formats 7%
Display affiliate adver=sing 3%
Email adver=sing 1%
Other 4%
Display Breakdown (Desktop) 2012
€ million
Breakdown by adverQsing format based on figures provided -‐ 100% of display. %’s are rounded.
Note: Social Media was included in Embedded Formats 2012
72%
10%
10%
4%
2%
2%
€33m
€5m
€5m
€2m €1m €1m
Embedded formats
Pre/Post roll video
Sponsorships and tenancy
Display affiliate adverQsing
InterrupQve formats
Email adverQsing
Industry Categories – Desktop Display 2013
ì Top Performers in Display 2013
ì Finance (15%) ì Retail (13%) ì FMCG (12%) ì Telecoms (11%) ì Auto (9%)
Industry Categories –Desktop Display 2012
ì Top Performers in Display 2012
ì FMCG (15%) ì Finance (12%) ì Telecomms (11%) ì Automobile(10%) ì Retail (9%)
Industry Category Desktop Display 2013
Breakdown represents 79% of total for Desktop Display
15%
13%
12%
11% 8.5%
8%
7%
4.5%
4%
4%
3%
2% 2% 2% 4%
Finance 15%
Retail 13%
FMCG 12%
Telecoms 11%
Auto 8.5%
Entertainment/Media 8%
Travel7%
Alcohol 4.5%
U=li=es 4%
Government/Public Service 4%
Technology 3%
Educa=on/Training 2%
Gambling 2%
Recruitment/Property 2%
Other 4%
Industry Category Desktop Display 2012
Breakdown represents 82% of total for Desktop Display
15%
12%
11%
10%
9%
9%
7%
6%
4%
4%
3%
3%
2.5%
2%
2%
15%
12%
11%
10% 9%
9%
7%
6%
4% 4%
3% 3%
2.5% 2% 2%
FMCG
Finance
Telecomms
Automobile
Retail
Entertainment & Media
Travel
Alcohol
Other
Government/Public Service
Technology
U=li=es
Gambling
Educa=on and Training
Recruitment/Property
Industry Categories – Desktop Classified 2013
ì Top Performers in Classified 2013
ì Recruitment and Property 36%
ì Automobile 35%
Industry Categories – Desktop Classified 2012
ì Top Performers in Classified 2012
ì Automobile (36%)
ì Recruitment and Property (34%)
5. IAB Ireland Mobile Adspend 2013
Gross Mobile Adspend €34m
Search 72% Display 28%
Display Breakdown (Mobile) 2013
Breakdown represents 100% of total for Mobile Display
€3.4
€2.2
€1.6
€1.3
€0.1 €0.3 €0.2
Social Media Display including Mobile Messaging 37%
Standard display non-‐rich format 24%
Standard display rich format 17%
Mobile content -‐ video/TV 15%
Content sponsorship 2%
Tenancy deals (long term strategic partnerships) 3%
Dedicated tablet adver=sing 2%
Top Performing categories - Mobile Display Adspend 2013
ì Top Performers in Mobile Display 2013
ì FMCG (18%) ì Finance (13%) ì Retail (13%) ì Alcohol (8%) ì Automobile (8%)
Industry Breakdown Mobile Display 2013
Breakdown represents 50% of total for mobile display.
18%
13%
13%
8% 8%
7%
7%
6%
3% 3%
2% 2% 2% 2%
5%
FMCG 18%
Finance 13%
Retail 13%
Alcohol 8%
Automobile 8%
Telecomms 7%
Entertainment & Media 7%
Travel 6%
Government/Public Service 3%
U=li=es 3%
Educa=on & Training 2%
Recruitment/Property 2%
Technology 2%
Gambling 2%
Other 5%
Social Media Display Advertising 2013 (Desktop & Mobile)
€13.7m*
Up from €6.3m* 2012
*Based on actual spend figures submiqed by some SM sites, leading Ad Agencies and Industry Reps.
Pre/Post Roll 2013 (Desktop & Mobile)
€8.8m in 2013*
12% of Total Display (desktop and mobile)
* Includes Social Video.
6. Looking Ahead
ì Agency predic=ons for 2014 range from
12-‐15% growth (Core, Mindshare, Aegis, OmnicomMedia Group)
ì PwC Global Entertainment & Media Report predict
growth of 15% for Digital in Ireland
Next Study & Updates
Next IAB PwC Study – H1 2014
November 2014
Real Time Adver=sing Workshops:
Publishers 14th May/ AdverQsers – 28th May
IAB Brand Builders:
Standardised ad formats on www.iabireland.ie
Questions?
Many thanks to:
ì All of our Adspend participants
ì Nuala Nic Ghearailt, PwC
For More go to www.iabireland.ie or email [email protected]
