Interactive Advertising Bureau 2007

Transcription

1 Interactive Advertising Bureau 2007

2 Agenda Introduction : 10 minutes Who s is IAB The Advertisers Road show Part 1 : Facts and Figures 45 minutes Internet in Belgium Household products & Surfers : Exclusive IAB study Advertising investments Part 2 : Understanding 30 minutes Open discussion about Internet Hurdles and Difficulties Conclusion and Next steps 5 minutes

3 IAB Belgium Who s IAB and why are we doing a Roadshow?

4 Association representing the online Industry Vision : moving from passive and intrusive marketing into permission based and interactive marketing Mission : promote and develop the market Organisation : Educate, Defend, Regulate and Promote WG : Training, Research, Legal, Channel Guidelines, Cases and e-business More than 40 events/year and more than 10 publications & white papers/year Structure : Members (185), Board (15), Staff (5), Workgroups (6) and Taskforces (20) IAB Europe and 13 National IAB s Taskforce «Develop the Market» : Research : exclusive content Press : awareness Road show : dialogue Action plan : support

5 1. Internet usage in Belgium 1.1. Internet connections in Belgium

6 Internet penetration in Europe Number of Internet connections for 100 households Netherlands Denmark Norway Finland Sweden Belgium Luxembourg United Kingdom Malta Estonia EU (15 countries) Germany Slovenia Austria EU (25 countries) France Spain Portugal Latvia Hungary Poland Lithuania Czech Republic Italy Ireland Cyprus Slovakia Bulgaria Greece Macedonia Source : Eurostats - Dec 2006

7 Number of connections in Belgium More than 2.6 million connections 89% broadband 3,000,000 Better user experience = Increased usage Better connections = more creative opportunities (video) 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Broadband Smallband Source : ISPA Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 2006

8 1. Internet usage in Belgium 1.2 Surfer s profile

9 Total Internet penetration (% of 12+ population) individuals have used Internet across past months 56% of the Belgian population Websites Web or Mail Source : CIM PluriMediaProduct Study 05-06

10 Total Internet penetration (Web or mail usage - % per age group) Average 12+ population Average y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o. 75 y.o. + Source : CIM PluriMediaProduct Study 05-06

11 Yesterday use of web or (% of 12+ population) There are Belgian surfers on an average day 42% of Belgians Websites Web or Mail Source : CIM PluriMediaProduct Study 05-06

12 Average 12+ population Average y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o y.o. 75 y.o. + Yesterday use of web or ( % per age group) Source : CIM PluriMediaProduct Study 05-06

13 Average Average 12+ Men Women Main shopper FR NL Antwerpen Brussels 19 Hainaut Limburg Liege Luxembourg Namur Oost Vl. Vlams Brabant Brabant wallon West Vl. SG 1-2 SG 3-4 SG 5-6 SG 7-8 Yesterday s use (Web or usage - % per target) Source : CIM PluriMediaProduct Study 05-06

14 Yesterday s use of Internet Evolution on Main Shoppers Source : CIM PluriMediaProduct Study 05-06

15 Online activities Activity 12+ (000) 12+ (%) Activity MS (000) MS (%) Product Info Product Info Surf Pc-Banking Document Document Pc-Banking Surf Download Press Music E-Shopping Press Download Online Games Radio Chat Music E-Shopping Online Games Radio Jobs Sites Sms Chat Jobs Sites Sms Jobs Jobs Tv Prog Tv Prog Life Sport Life Sport Logo/Bel Logo/Bel 58 2 Online Transaction Online Trans Source : CIM PluriMediaProduct Study 05-06

16 Top sites Top 20 Sites (Metriweb) Regular visitors Daily average Hotmail MSN Belgium Skynet Zita HLN.be - 7sur7.be Website Het Nieuwsblad SKYBLOG.com Top Sites (Comscore panel) Google Search Hotmail-Windows Live Mail Pages d Or - Gouden Gids Kapaza De Standaard Online VRT NIEUWS NET 2dehands.be SeniorenNet Windows Live Messenger Skynet.be Zita (Telenet) Wikipedia.org Windows Live Spaces NetOnline Ebay.be Immoweb MSN Portal één VTM Windows Live Search Infobelcom Autoscout Gazet van Antwerpen Source : January 2007

17 1. Internet usage in Belgium 1.3 Pluri media consumption

18 Internet influences other media usage Total TV screen usage : minutes per day 3:55 3:38-55 min -1h31 2:24 2:43 4+ No Internet at home 4+ Internet at home MS No Internet MS Internet Source : CIM Audimetrie January December 2006

19 Pluri-media consumption Source : CIM PluriMediaProduct Study 05-06

20 16h 19h 22h 13h 1h Consumption moment All day Internet Magazines Consumption Index 4h 7h 10h Morning Newspaper Radio Evening h 22h 1h 16h Cinema TV Source : CIM PluriMediaProduct Study h 7h 10h 13h 4h 7h 10h 13h 16h 19h 22h 1h Consumption Index

21 2. Household Products & Surfers 2.1. Household products habits

22 Population composition 53% of Belgians are surfers responsible for household purchase Belgians (15-65) 68% Belgian surfers (15-65) 65% Belgian DMU surfers (15-65), responsible for the purchase of household products A DMU surfer is an Internet user who is responsible for or influences the purchase decision of a certain product category, in this case Household products IAB 10before10 Barometer II: Household 2007

23 How often you use the following products at home? Washing-up liquids / detergents 84% 8% Laundry cleaners 59% 27% Kitchen cleaners 44% 35% Toilet care products 40% 45% 16% All-purpose cleaners 25% 45% 26% Bathroom cleaners 14% 60% 24% 2% Bleaches & disinfectants 8% 40% 47% Floor, furniture, carpet cleaners & polishes 6% 43% 46% Metal, oven cleaners, anti-limescale products 4% 32% 60% 4% Window & glass cleaners 3% 26% 67% Almost daily Once a week Less than once a week Never N = 942 Filter: Belgian DMU surfers IAB 10before10 Barometer II: Household 2007

24 What surfers use more? Surfer 12+ Product % of consumers who are surfers % surfers who use this type of product Affinity % population who uses this type of product Use Washing Machine Descaler Toilet Dishes Cleanser Hand Floor Product Bathroom Abrasive Product Kitchen (Not)Conc.Fabric Softner Descaler Javel Water Spot Remover Liquid Washing powder.nor/conc Product Windows Normal Washin gpowder Toilet Basket Dishes Cleanser Carpet Concentr.Washing powder/pearls Cleaning Tissues Washing tablet Source : CIM PluriMediaProduct Study 05-06

25 2. Household & Surfers 2.2. Household websites

26 Would you consult information sources to decide upon the brand for a household product? No 11% Yes 89% N = 942 Filter: Belgian DMU surfers Which of the following information sources would you consult to decide upon the brand for a household product? Multiple answers possible. Friends, relatives,... In-store material Product packaging Free local papers Offline advertising Magazines TV programmes Newspapers Shop assistant Websites Other Radio programmes Online advertising Brand call centre 0% 4% 11% 11% 8% 7% 6% 33% 32% 27% 25% 25% 42% 55% Word of mouth is n 1 information source N =838 Filter: Belgian DMU surfers with intention to consult other information sources IAB 10before10 Barometer II: Household 2007

27 How do you get to household websites? Search engine 26% TV/radio programme or press article Link product packaging 15% 16% Directly by entering url WOM Link different site / newsletter 8% 9% 9% Different way Commercial or ad Banner 4% 5% 6% Bookmarks / favourites 1% 53% has already visited household products websites in the past IAB 10before10 Barometer II: Household 2007

28 Which of the following websites would you visit? Multiple answers possible. Websites with cleaning tips 68% Websites for known household product brands 61% Websites specialised in household products and cleaning 61% Columns regarding household products / cleaning on general website 52% Websites for unknown household product brands 46% Online shopping sites 25% Discussion forums / blogs 23% Other websites 16% Most visited household product related websites are websites with cleaning tips (68%), websites for familiar household product brands (61%) and websites specialized in household products and cleaning (61%). N = 76 Filter: Belgian DMU surfers with intention to consult websites as information sources IAB 10before10 Barometer II: Household 2007

29 Which information and services regarding household products do you expect to find on the Internet? Product usage Product pricing 63% 65% Request product samples Request discount coupons 54% 56% Where to buy the product Composition of househhold products 49% 51% Contests to win free products 45% Ask sugestions to manufacturers 40% Contact info manufacturer 35% Subscribe to a newsletter 25% General info manufacturer Buy products online Latest advertising campaigns Online games Goodies None of the above 6% 9% 11% 13% 17% 24% Most expected information on household products websites are product usage information (66%), product pricing (63%) and the ability to request product samples or discount coupons (+/-55%). Least expected are online games and goodies. N = 942 Filter: Belgian DMU surfers IAB 10before10 Barometer II: Household 2007

30 Do you agree with the following statements regarding household websites? After I purchase a household product I find it important to have the possibility to look up additional product information on the internet 50% 15% I would switch brands if I had access to interesting promotions (for another brand) via the internet 36% 27% I think it is important for household product manufacturers to have a well-designed website 35% 15% Household products are not fit to be sold via the internet 32% 18% I would switch brands if I could receive advice or personalised information on a specific household product via the internet If I were very satisfied with the website for a household product manufacturer I would buy more products from this manufacturer in the future Before I purchase a household product in a supermarket I find it important to look up information online 19% 24% 22% 32% 36% 32% I would change my opinion on a household product manufacturer, if I was dissatisfied with the website 15% 44% I would switch to another brand if I could buy this other brand online 6% 58% Agreement (top 2) Disagreement (bottom 2) N = 942 Filter: Belgian DMU surfers IAB 10before10 Barometer II: Household 2007

31 Household Websites mapping 60% Nice to have Strength 55% Readability Performance (= % agree + fully agree individual items) 50% 45% 40% 35% 30% 25% Graphic elements Mean all items Technical performance Contact information User-friendliness Transparent site structure Quality reply questions sent via - e mail / online form Loading speed General product information Information on product usage Cleaning advice Exclusive information Answering speed questions sent via / online form Exclusive online promotions 20% Long term care Weakness Mean all items 15% 0,12 0,14 0,16 0,18 0,20 0,22 0,24 0,26 0,28 0,30 0,32 Importance (=correlation with overall site satisfaction) 0,34 0,36 0,38 0,40 0,42 N = 497 Filter: Belgian DMU surfers who visited a Household website before IAB 10before10 Barometer II: Household 2007

32 Household website : lower satisfaction Household prod 5.8 External site benchmark (214 other sites) Percentiles (N=214 websites) 10% 20% Average for N = % 40% % 50% % 24% 25 60% 70% % % 8.1 9% 7% % 1% 4% 1% 1% 10 - Very satisfied Very dissatisfied N = 497 Filter: Belgian DMU surfers who visited a Household website before ,4 6,5 6,6 6,7 6,8 6,9 7,0 7,1 7,2 7,3 7,4 7,5 7,6 7,7 7,8 7,9 8,0 8,1 8,2 8,3 8,4 8,5 8,6 IAB 10before10 Barometer II: Household 2007

33 Visited (% ever) Visited (% last month) Purchase online (% yes) Purchase intent (% Top 2) Repurchase intent (% Top 2) % DMU surfers Visited websites 6% 4% DMU surfers Purchased online Purchase intention online DMU surfers 50% DMU surfers Repurchase intention online IAB 10before10 Barometer II: Household 2007

34 3. Advertising Investments

35 Belgium vs other countries Comparability? Benchmark 2006 : Display Advertising, Content Integration, , Search, Affiliate and Classifieds (Directories not yet) First estimations 2006 through National IABs and AdEx benchmark Reaching 8 Billion for 2006 European online Investments 3blj 310mlj 1,3blj 1,9blj 500mlj

36 Europe and US bn bn Billions Europe US Source: IAB Europe/IAB US/ PricewaterhouseCoopers

37 Market Share by Format Search 45% 2% Classifieds 22% Display 31% Source: IAB Europe/PricewaterhouseCoopers

38 Share of European Market by country Italy 6% Denmark 3% Spain 4% All other 5% Netherlands 7% UK 38% France 15% Source: IAB Europe/PricewaterhouseCoopers Germany 22%

39 Expenditure per user in Ū Ū Average European investment = 39.1 per active user Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū Ū 0.00 Ū 9.94 Ū 4.29 Ū 1.57 UK USA Denmark Netherlands France Belgium Germany Finland Austria Spain Italy Slovenia Greece Croatia Source: IAB Europe/ IAB US/ PricewaterhouseCoopers/ 4

40 Media consumption Evolution of hours spent since Watch television Listen to the Use the Internet Radio Read Newspapers Read Magazines Source : EIAA 2006 [Base: All European users of each media]

41 Zoom on the household sector Household cleaning invest (mio ) Share of voice Household cleaning vs other sectors Media Mix Household cleaning Media Mix all sectors TV % 96.6% 37.4% Mag % 1.3% 10.0% Dailies % 1.2% 24.5% Outdoor % 0.4% 7.9% Free sheets % 0.4% 6.1% Radio % 0.0% 11.4% Movie - 0.0% 0.0% 1.0% Internet - 0.0% 0.0% 1.6% - 3.9%* TOTAL % 100.0% 100% Source CIM MDB, January December 2006, *MC estimate

42 Top online advertisers in Advertisers Total Direct Cash Ebay Proximus Microsoft Telenet Operaties Cbc Carrefour Internet in Dexia Telenet Digital Tv Cofidis Hewlett Packard Warner Bros Movie World Mobistar Opel Sony Sncb Peugeot Electrabel Eurostar Ford Average budget per Display campaign Source CIM MDB, January December 2006

43 Online household products advertisers 2003 : Ajax 2005 : Robijn No data in the CIM MDB study for 2006 Source CIM MDB, January December 2006

44 Advertisers opinion What percentage of the total media budget in Belgium in 2006 does your company spend on online advertising? '0% 1% 1-10% 68% 11-20% 18% 21-50% 9% 51-75% 2% 76-99% 100% 1% 1% To what extent will the online advertising budget for 2007 change in comparison with 2006? Will drop by more than 50% 3% Will drop by 20 to 50% Will drop by a maximum of 20% 1% 2% Will remain unchanged 39% Will increase up to 20% 49% Will increase between 20 to 50% Will increase more than 50% 4% 4% IAB-UBA Forum 2006

45 In how far do these reasons for (not) spending more on online advertising apply to you? Strongly Disagree Partly agree Completely disagree agree The cost is too high 13% 32% 43% 12% Negative past experiences 41% 41% 16% 2% The impact/return is too modest 20% 28% 36% 16% Limited know-how within the company 22% 35% 36% 8% Internet adoption in my target group is too low 30% 36% 24% 9% My product/service is not suitable 39% 33% 21% 7% The players on the online advertising market syphon off too large a portion of the budget 10% 23% 53% 14% the market (media, planners, production) is not clear or transparent enough 16% 33% 41% 9% Impossible to verify whether the media plan is executed as agreed 26% 38% 33% 3% My current advertising agency has too little online experience 34% 35% 24% 7% Online advertising is still in its infancy and has to prove itself first 29% 39% 28% 4% Negative attitude amongst internet users toward internet advertising 23% 36% 32% 9% Too little faith in the results 23% 34% 39% 4% Too little feedback / not sufficiently measurable 21% 29% 41% 9% Too specialised 31% 47% 17% 6% No budget 31% 33% 29% 7% Limited to current level by management / headquarter directives 50% 27% 19% 4% Insufficient trust in the players on the online advertising market 19% 41% 35% 5% Advertising formats don't offer enough possibilities to get my message across 24% 41% 30% 6% The creative possibilities of online advertising are too limited 41% 39% 19% 1% My competitors make little or no use of the medium. 31% 31% 31% 6% IAB-UBA Forum 2006

46 2. Why online? Or why not? That s the question

47 Evaluation advertising channels Ranking different media Q:Below you see a number of aspects of media. Please indicate to what extent each medium matches those aspects by using a 1 to 7 point scale. For example, give a 1 to the medium that best matches the aspect and a 7 to the medium that least matches it. Part 1 The cost effectiveness of a campaign { Experienced user Non-user 6% 7% 4% 10% 13% 13% 33% 38% 13% Top 1 score: ranked item on 1st place 8% 16% 9% 20% 9% The results achieved { Experienced user 6% 13% 26% 22% 10% 18% 5% Non-user 9% 4% 25% 14% 15% 25% 9% To obtain a young Experienced user 18% 5% 10% 56% 2% 6% 3% Non-user 15% 4% 14% 50% 4% 6% 7% image { { Experienced user Easy to justify internally 7% 13% 16% 30% 10% 18% 5% Non-user 10% 4% 15% 29% 11% 25% 7% Cinema Radio TV Internet Print (newspaper) Print (magazine) Outdoor (billboards) N = 287 Filter: only experienced users and non-users

48 Evaluation advertising channels Ranking different media Q:Below you see a number of aspects of media. Please indicate to what extent each medium matches those aspects by using a 1 to 7 point scale. For example, give a 1 to the medium that best matches the aspect and a 7 to the medium that least matches it. Top 1 score: ranked item on 1st place Part 2 The knowledge about this medium available in our company { Experienced user Non-user 6% 7% 5% 3% 9% 18% 27% 18% 16% 18% 24% 28% 10% 11% { Quick to start up a campaign Experienced user 5% 8% 8% 54% 12% 5% 7% Non-user 4% 6% 13% 38% 20% 9% 9% { The knowledge about this medium available in my advertising agency Experienced user Non-user { Experienced user The clarity and transparency of the advertising market within this Non-user medium 8% 11% 10% 14% 5% 4% 8% 4% 9% 21% 15% 26% 19% 14% 13% 19% 20% 12% 21% 16% 25% 29% 18% 19% 8% 9% 10% 14% Cinema Radio TV Internet Print (newspaper) Print (magazine) Outdoor (billboards) N = 287 Filter: only experienced users and non-users

49 Evaluation advertising channels Ranking different media Q:Below you see a number of aspects of media. Please indicate to what extent each medium matches those aspects by using a 1 to 7 point scale. For example, give a 1 to the medium that best matches the aspect and a 7 to the medium that least matches it. Part 3 { Experienced user The unique character of this medium 26% 4% 10% 43% Top 1 score: ranked item on 1st place 3% 9% 4% Non-user 22% 4% 19% 26% 6% 11% 13% { Experienced user It is suitable for branding campaigns 7% 4% 43% 11% 7% 16% 12% Non-user 13% 6% 34% 11% 7% 17% 13% { Experienced user It is suitable for direct marketing campaigns 7% 6% 5% 56% 8% 11% 6% Non-user 11% 4% 11% 40% 17% 11% 8% Cinema Radio TV Internet Print (newspaper) Print (magazine) Outdoor (billboards) N = 287 Filter: only experienced users and non-users

50 Evaluation advertising channels Ranking different media Q:Below you see a number of aspects of media. Please indicate to what extent each medium matches those aspects by using a 1 to 7 point scale. For example, give a 1 to the medium that best matches the aspect and a 7 to the medium that least matches it. Part 4 { Experienced user It is suitable to develop awareness 6% 11% 41% 13% Top 1 score: ranked item on 1st place 10% 8% 11% Non-user 11% 7% 36% 9% 10% 18% 9% { Experienced user It is suitable for generating sales leads 5% 4% 12% 46% 13% 14% 5% Non-user 6% 4% 12% 28% 11% 26% 13% { Experienced user Time the consumer spends on using this medium Non-user 4% 6% 11% 9% 43% 46% 21% 16% 9% 9% 8% 8% 5% 5% Cinema Radio TV Internet Print (newspaper) Print (magazine) Outdoor (billboards) N = 287 Filter: only experienced users and non-users

51 What do you think? Believes Difficulties Hurdles Others

52 Conclusion and next Steps Marketers Must Shift Communication Strategies to Accommodate Empowered Consumers REQUIRED SHIFT IN MARCOMS APPROACH Post-digital Pre-digital CONSUMER MARCOMS Aggregated Mass Broadcast Homogeneous One-dimensional Passive (Receiver) Intrusive monologue Uninformed Basic information Disconnected Advertiser authority Low expectations Organizationdictated delivery Singular media consumption Channel silos Source: JupiterResearch (11/05) CONSUMER Fragmented Heterogeneous Active (Participant) Informed Interconnected High expectations Converged media consumption MARCOMS Targeted narrowcast Multi-dimensional Inclusive dialogue Rich infotainment Consumer authority Consumer -dictated delivery Channel integration

53 Respond To Emerging Consumer Traits to Build Effective Online Brand Communications Digital Technology Consumer Impact Required Marketing Response Ability to access abundance of Information More savvy, well-informed Improve relevance, targeting, offer access to unique infotainment Ability to publish self-expression Ability to customize consumption Ability to interconnect and congregate More publicly expressive More in control More socially networked Offer invitation to co-create and contribute Offer invitation to participate and personalize Encourage consumer connections/brand community Ability to gain satisfaction ondemand Ability to communicate and interact More exacting More communicative Enable quick and efficient satisfaction of needs Maintain mutually beneficial dialogue Source: JupiterResearch (11/05)

54 Thank you for you attention Your contacts at IAB President : Alain Heureux General Manager : Patrick Steinfort