[PPT] - European Digital Advertising Data and Trends Constantine Kamaras PowerPoint Presentation

SLIDE 1

European Digital Advertising Data and Trends

Constantine Kamaras Chairman, IAB Europe

SLIDE 2

About the study

SLIDE 3

A meta-analysis of online ad spend in Europe

RATECARD Campaigns x Ratecard GROSS Spend Billed NET Revenue Billed No Agency commissions

SLIDE 4

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

SLIDE 5

Big Picture

SLIDE 6

Europe: the value of online advertising in H1 2017

€22.5bn

SLIDE 7

20,2 22,5 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

SLIDE 8

€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 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

Search Classifieds & Directories Display

2.3

Source: IAB Europe & IHS Markit

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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

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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

€20.2b n €22.5b n

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

SLIDE 11

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 2017

Note: (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

SLIDE 12

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 Desktop

Note: shares based on extrapolation of mobile data to all countries

Share of format Share of format Share of format

Source: IAB Europe & IHS Markit

SLIDE 13

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%*

€19.5b n €3.0bn H1 2017 H1 2017

Source: IAB Europe & IHS Markit

SLIDE 14

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 2017

Note: (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

SLIDE 15

Outlook to full year 2017

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

nline 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

SLIDE 16

Contact: Alison Fennah – fennah@iabeurope.eu Marie-Clare Puffett – puffett@iabeurope.eu Daniel Knapp – daniel.knapp@ihsmarkit.com Connect with us:

@IABEurope IAB Europe

www.iabeurope.eu www.technology.ihs.com

@IHS4Tech

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