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IAB Ireland PwC Online Adspend Study Full Year 2012. Suzanne McElligott CEO, IAB Ireland April 18th, 2013. In association with:. Agenda. Introduction Study Methodology Market Background Online Adspend Results Mobile Adspend Results Looking ahead… Questions. 1. Introduction. - PowerPoint PPT Presentation
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IAB Ireland PwCOnline Adspend Study Full Year 2012
Suzanne McElligottCEO, IAB IrelandApril 18th, 2013
In association with:
Agenda
1. Introduction2. Study Methodology3. Market Background4. Online Adspend Results5. Mobile Adspend Results6. Looking ahead…7. Questions
1. Introduction
Census of all major Irish online media owners Includes online and mobile Information collected each half year
Analysis available by Category (Display, Search and Classified) Format (embedded, pre-roll / post-roll etc.) Industry sector (FMCG, Finance, Telco etc.)
2. Study Methodology Internationally, IAB has been working with PwC since
1997 to survey the value of online adspend in Europe and North America.
In our study, 28 leading publishers participated, representing multiple websites.
13 sales houses and ad networks also participated
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.
Survey participants AD2ONE Ireland, Adconion, Adforce, Brightroll, BSkyB, Buy
and Sell, CarsIreland.ie, communicorp, Crimtan, Digitize New Media Ltd, Distilled Media, Donedeal.ie, eircom, Electric Media Sales, Entertainment.ie, Facebook *, FCR Media (Goldenpages), Flashpoint, Google *, Gradireland, Homewise, i-Believe, Independent Digital, Irishracing.com, Linkedin, Media Brokers, Microsoft Advertising, MyHome.ie, O2 Media, OnlineTradesmen.ie, Page7 Media, Pigsback, Rollercoaster.ie, RTÉ *, saongroup.com, Specific Media, TCH, The Irish Times, Ticketmaster Ireland, TradeDoubler Ireland Ltd, Trader Media Group, TV3, Twitter *, Yahoo!
* Estimates
Study Content
Total advertising revenue is reported on a gross actual basis (including agency commission)
The figures are drawn up on the basis of actual revenues submitted by the study participants
Estimates have been included for Google and Facebook based on consultation with industry representatives.
IAB’s advisory council is comprised of Aegis Media, Core Media and Group M.
Digital Adspend
• Traditional online advertising viewed on a desktop PC or laptop, accessed via the Internet connection
• Only media spend reported to ensure fair comparison to other media including – Display advertising– Search– Classified
Online
• Advertising that has been specifically tailored and served on a mobile device including tablet, accessed via 3G or wifi
• Only media spend reported to ensure fair comparison to other media including– Display advertising (including SMS/MMS)– Search
Mobile / Tablet
3. Market Background
Annual Growth Rate Graph 2007 – 2012 ( issued Thurs 21.03.13)
Exports performed positively in 2012
Second successive year of growth of GDP following 3 years of decline.
Distribution, Transport, Software and Communications sectors were themain contributor to growth in 2012
Domestic Demand remains very weak – personal consumption down 0.9%
CSO Quarterly National AccountsQuarter 4 2012 and Year 2012 (Preliminary)
2008 2009 2010 2011 2012
-9.0
-8.0
-7.0
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
Annual Growth RatesGDP
GNP % Change
2009 2010 2011 2012GDP -5.5% -0.8% 1.4% 0.9%
GNP -8.1% 0.9% -2.55 3.4%
Consumer Confidence Nielsen Irish consumer confidence indexed at 65 in Q4 2012, a two-
point decline from Q3 2012, however an increase of five points from Q4 2011 (Nielsen) *
This is an improvement relative to a year ago, however consumer spending power remains under pressure.
Outlook on Job prospects and personal finances in Ireland is behind global average - The latest Q4 2012 survey revealed there is still a recessionary mind-set (95 percent).
* Source: Nielsen Global Consumer Confidence Survey Q4 2012 – Ireland Results
‘Caution is expected in the first quarter of 2013. However if things improve, consumer confidence could rebound later on in the year. There are signs 2013 could be a turning point for the irish domestic economy, and on the back of that we may see some strong consumer spending resume.‘ Karen Mooney, Nielsen
Nielsen 2012 Adspend in Other Media
Grand Total
Press
TV
Radio
Outdoor
Cinema
-6.2
-6.5
-6.8
-4.4
-5.2
0.9
% change other media adspend yoy - Nielsen
Source: Nielsen All Media Spend Full year 2012
€794m
€355m
€273m
€82.5m
€77m
€5.9m
Source: Alternatives Marketing Watch Survey December 2012
Business Performance 2012 vs 2010 and 2011
Business Improved0
10
20
30
40
50
60
Dec-10Dec-11Dec-12
55% of senior marketers say their business hasimproved in 2012
A further 31% said it remainedthe same as in 2011
What’s driving online Adspend?Marketing Strategies 2013
Where Marketing Spend was increased
% respondents increasing spend
Digital 80%
DM / Email Marketing 39%
CRM 38%
PR 33%
Research 31%
80% of medium / large businesses say they are increasing spend on Digital
Source: Alternatives Marketing Watch Survey December 2012
What’s driving Online Adspend?Audience
Total adult Ireland population of 3.7 million
2.6m total unique visitors in Ireland. Growth of 10% over past year. (comScore)
Ireland is joint third fastest growing Market in Europe (after Italy, Russia and joint with Portugal)
19.5 average hours spent online per
person per week in Ireland (comScore)
Smartphone penetration in Ireland:
43%
61% access the Internet every day on their smartphone
(2012 Our Mobile Planet Smartphone Research)
Device Share of Page Views Across Europe
Source: comscore Europe Digital Future In focus 2013
Ireland, UK and Russia skewing above average for Internet access via Mobile and Tablet
What’s driving online adspend? Technology and Innovation
Broadband penetration in Ireland is stable at 65% EU 27: 72% (comreg key data report q4 2012)
Enthusiasm for all things Digital 44% of adults say Internet has made family life better
(UPC Report) 50% of householders expect to own a tablet / iPad
(UPC Report)
More choice for Brands / Innovation Richer Ad Formats – home page takeovers, carousel,
billboard, slider Video on Demand Mobile Opportunities
4. IAB Ireland Online Adspend Full Year 2012
Gross Online Adspend(like for like growth excluding Mobile)
€148.2M
Online Revenue: 2011 vs 2012
€ million
Full year like for like adspend120
125
130
135
140
145
150
2011 2012
12.3% Increase
On a like for like basis(Excluding Mobile)
2009 2010 2011 2012
0
20
40
60
80
100
120
140
160
H1
Full Year
H1Full Year
+ 13.5% yoy2009 to 2010
+ 19.6% yoy2010 to 2011
+ 12.3% yoy 2011 to 2012
Online Adspend 2009-2012 (like for like, excluding mobile)
Sources: IAB PwC Adspend Studies 2009-2012
H1 Full year
2009 €48m €97.2m
2010 €53.9m €110m
2011 €64.9m €132m
2012 €73.2m €148m
Digital Media Mix Full Year 2012
€ million
Breakdown by advertising format based on figures provided - based on 98.7% of the overall total.
45%
(€66.6m) 34%
(€50.6m)
20%(€28.9m)
1%, (€2m)
Search
Display
Classified
Other (not allocated)
45%
34%
20%
1%
Digital Media Mix Full Year 2011
€ million
Breakdown by advertising format based on figures provided – based on 93% of overall total.
41%(€53.9m)
36%(€47.8
m)
19%(€25.6
m)
4%(€4.7m)
Search
Display
Classified
Not Allocated
41%
36%
19%
4%
Social Media Display Advertising in 2012
€ 6.3m*
*Based on figures submitted for Boards.ie, Linkedin Facebook, Twitter, Youtube and Industry estimates. Prepared in consultation with industry representatives.
9% Increase from €5.8m* in 2011
Display Breakdown 2012
€ million
Breakdown by advertising format based on figures provided - 100% of display.
72%
10%
10%
4%
2% 2%
Embedded formats
Pre/Post roll video
Sponsorships and tenancy
Display affiliate advertising
Interruptive formats
Email advertising
72%
10%
10%
4%
2%
2%
Display Breakdown 2011
€ million
Breakdown by advertising format based on figures provided - 100% of display.
76%
9%
10%
2%
1%
2%
76%
9%
10%
2% 1% 2%Embedded formats
Pre/Post roll video
Sponsorships and tenancy
Display affiliate advertising
Interruptive formats
Email advertising
Industry Categories - Display
Top Performers in Display 2012
FMCG (15%) Finance (12%) Telecomms (11%) Automobile(10%) Retail (9%)
Industry Categories - Display Top Performers in Display 2011
Telecomms (15%) FMCG (11%) Entertainment & Media (11%) Finance (10%) Auto (10%) Retail (10%)
Industry Breakdown for Display 2012
Breakdown by advertising format based on figures provided – 76% of display.
3%
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
Utilities
Gambling
Education and Training
Recruitment/Property
15%
12%
11%
10%
9%
9%
7%
6%
4%
4%
3%
3%
2.5%
2%
2%
Industry Breakdown for Display 2011
Breakdown by advertising format based on figures provided – 81% of display.
12%
11%
11%
10%
10%
10%
7%
7%
6%
4%3%
3%3%
2%2%
Telco.
FMCG
Entertainment and Media
Finance
Auto.
Retail
Other
Travel
Alcohol
Gov/Public Sector
Recruitment
Technology
Utilities
Education and Training
Gambling
12%
11%
11%
10%
10%
10%
7%
7%
6%
4%
3%
3%
3%
2%
2%
Industry Categories – Classified 2012
Top Performers in Classified 2012
Automobile (36%)
Recruitment and Property (34%)
Industry Categories – Classified 2011
Top Performers in Classified 2011
Recruitment and Property (35%)
Automobile (29%)
5. IAB Ireland Mobile Adspend Full Year 2012
Gross Mobile Adspend
€9.9M
Mobile Adspend by type 2012
82%€8.1
m
18%€1.8
m
_x000f_Display/SMS/MMS
_x0006_Search
82%
18%
Industry Categories Mobile Display / SMS / MMS Adspend
Top Performers in Mobile Display / SMS / MMS 2012
FMCG (28%) Retail (20%) Alcohol (16%) Travel (12%) Entertainment & Media (11%)
Mobile Adspend by Industry Category 2012
28%
20%
16%
12%
11%
4%
3%2% 1% 1% 1% 0.5% 0.4% 0.3% 0.2%
FMCG
Retail
Alcohol
Travel
Entertainment & Media
Automobile
Other
Finance
Telecomms
Education & Training
Recruitment/Property
Gambling
Government/Public Service
Technology
Utilities
Mobile Display / SMS / MMS28%
20%
16%
12%
11%
4%
3%
2%
1%
1%
1%
0.5%
0.4%
0.3%
0.2%
IAB PwC Online Adspend 2012
Gross Online Adspend including Mobile
Adspend for 2012:
€158M
6. Looking Ahead
54% predict growth
or strong growth
3%
51%30%
16%
Sector growth potential over next 6 months
Strong growthGrowthStableDeclineStrong Decline
Drivers of growth in adspend
Mobile
Richer Ad formats
Video
Real time bidding
Q. What do you see as being the most important in driving your company's revenue growth?
Barriers to growth
Economic Climate
Digital strategy not prioritised in companies
Need for further training/knowledge
Insufficient data in the Irish market
Cost to the advertiser
Respondents’ view of the most significant barriers to growth
Next Study
Next IAB PwC Study - H1 2013
November 2013
Questions?
Many thanks to: All of our Adspend participants
Nuala Nic Ghearailt, PwC
For More go to www.iabireland.ie or email [email protected]