IAB Ireland / PwC Online Adspend Study for H Launched 27 th October 2016
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1 IAB Ireland / PwC Online Adspend Study for H Launched 27 th October 2016
2 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 2
3 Introduction Survey of all major Irish online media owners Includes desktop and mobile adspend in the Republic of Ireland 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.) 3
4 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 4
5 Study Methodology Internationally, IAB has been working with PwC since 1997 to survey the value of online adspend in Europe and North America. Our study includes data from 27 leading publishers, representing multiple websites. 10 sales houses and ad networks also participated. All data was provided to PwC on a confidential basis. The analysis is prepared by PwC based on the figures provided by participants, which have not been independently verified or audited by PwC. 5
6 Participating Publishers * * Data Source from RTE s Annual Report
7 Participating Adnetworks, Agencies & Social Media / Search Companies * * * * * *Based on actual spend via agency data and consultation with social media and search companies 7
8 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. Data has been included for Google, Facebook, Twitter and other social media platforms based on consultation with advertising agencies and industry representatives. 8
9 Digital Adspend Desktop: Traditional online advertising viewed on a desktop PC or laptop, accessed via an Internet connection: Display advertising (embedded, interruptive, social, VoD, , display affiliate, native, etc.) Search Classified Mobile/Tablet advertising that has been specifically tailored for and served on a mobile/tablet device and accessed via 3G or wifi: Display advertising (rich / non-rich formats, SMS, Social Media, inapp advertising, native, VoD, etc.) Search 9
10 Explanation of Native Types of Native Advertising 1. Discovery/recommendation units - are integrated into a web page, however, they do not mimic the appearance of editorial content feed; typically link to a page off the publisher's site. e.g. Outbrain and Taboola. 2. In Feed publisher controlled - this form of native advertising is written in partnership with the publisher and the content looks like the surrounding editorial. 3. In Feed advertiser controlled - this content is produced by the advertiser and it looks like the surrounding editorial in the feed. 4. Customized integration/innovation formats - these advertising units don't fit neatly into the categories above and they may involve custom playlists or may be platform specific. 10
11 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 11
12 Market Background Source: Nielsen Ireland Consumer Confidence Q
13 Market Background Source: Nielsen Ireland Consumer Confidence Q
14 The Mobile Opportunity for Brands 80% of Irish use a smartphone - up from 75% in 2015 * 62% have 3 or more connected devices** WE LOVE OUR SMART PHONES! 65% feel more connected to family through digital communications*** * Reuters Institute Digital News Report: Ireland 2016 ** Consumer Barometer 2016 *** Virgin Media Digital Insights Report
15 Smartphones are a Key Influencer on Path to Purchase! 50% of people compared products/prices/features online via a smartphone** 27% get ideas / inspiration online on smartphones** 25% looked for opinions, reviews, advice online** Virgin Media predict that the value of online spending will almost double between now and 2021 from 7.5b to 14.1b* About 60% of Irish online shopping still goes abroad* Source: ** Google Consumer Barometer 2016 * Virgin Media Digital Insights Report
16 Watching Video on Demand has become Mainstream 61% of Irish adults spend more than 4 hours a week consuming video streaming content* Video advertising delivers hard to reach audiences, 59% of year olds watch more VOD than TV** Video advertising drives brand growth - following seeing a video ad 24% of adults visit the brand s website and 20% search online for the brand** * Virgin Media Digital Insights Report 2016 ** IAB Ireland report: The Power of VOD 3, conducted by Nielsen June
17 Marketers Increasing Focus on Digital Digital is the top focus for marketing spend for Irish marketers in 2016 Digital was ranked the top area for marketing spend for Irish marketers in 2016 by 73% of the respondents to the Alternatives/ MII Sentiment Survey % of Irish marketers will dedicate between 21% and 50% of their marketing budget to digital in
18 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 18
19 IAB Ireland Online Adspend 107.5m Desktop 108.5m Mobile 216.0m Gross Online Adspend + 33% versus H Source: IAB / PwC Digital Adspend H
20 IAB Ireland Online Adspend Online Adspend, H vs H % 11% Increase in mobile on a like for like basis Increase in desktop on a like for like basis Source: IAB / PwC Digital Adspend H
21 Adspend by Format (Desktop & Mobile) Historic online Adspend by Format ( m), H H % % % + 132% % + 72% % % % % % + 11% 2013 H H H H1 Desktop Mobile Source: IAB / PwC Digital Adspend H
22 Digital Media Mix (Desktop & Mobile) Total online Adspend by Digital Media Mix ( m), H % Classified % Display m Total % Search Source: IAB / PwC Digital Adspend H
23 Digital Media Mix (Desktop & Mobile) Historic online Adspend by Digital Media Mix ( m), H H % % + 34% % + 30% % % % % 2013 H H H H1 Search Display Classified Source: IAB / PwC Digital Adspend H
24 Spend by Industry (Desktop & Mobile) Display Adspend by Industry, H (1) Finance Retail Telecoms & Utilities FMCG Auto Entertainment & Media Travel Alcohol Government/Public Service Technology Gambling Education & Training Property & Recruitment Other 3% 3% 2% 2% 4% 4% 5% 7% 8% 10% 11% 12% 13% 15% Note: (1) Figures based on 43% of reported display revenue for H1 2016; excludes social media Source: IAB / PwC Digital Adspend H
25 Display Spend Type (Desktop & Mobile) Historic online Adspend by Spend Type ( m), H H Native (incl. social in-feed) Embedded, social display and GDN Pre/post roll video (incl. social VoD) Interruptive Other (1) H H H H % + 128% + 9% + 89% + 59% + 4% Note: (1) Other includes: tenancy, , display affiliate, SMS, fixed in-game and dynamic in-game Source: IAB / PwC Digital Adspend H
26 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 26
27 Digital Media Mix (Mobile) Mobile online Adspend by Digital Media Mix ( m), H (1) 42% Display m Total % Search (1) c. 0.5 classified spend on mobile. Remaining c. 13.9m classified spend is on Desktop Source: IAB / PwC Digital Adspend H
28 Digital Media Mix (Mobile) Historic online Adspend by Digital Media Mix ( m), H H % % % % % % + 163% % % 2013 H H H H1 Search Display Source: IAB / PwC Digital Adspend H
29 Display Spend Type (Mobile) Historic online Adspend by Spend Type ( m), H H Native (incl. social in-feed) Embedded, social display and GDN Pre/post roll video (incl. social VoD) Interruptive Other (1) % + 197% H H H H1 + 33% + 150% + 167% - 4% Note: (1) Other includes: tenancy, , tablet, mobile content and SMS Source: IAB / PwC Digital Adspend H
30 Contents 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Growth Drivers 30
31 Social Media (Desktop & Mobile) 50.8m* Up 130% on 22.1m* in H *Social media display includes social media VoD. Data is based on actual spend figures submitted by Ad Agencies and consultations with social media companies. Source: IAB / PwC Digital Adspend H
32 Pre/Post Roll Video (Desktop & Mobile) 20.8m* Up 89% on 11m* in H *Includes Social Media VoD Source: IAB / PwC Digital Adspend H
33 Native Advertising (Desktop & Mobile) 36.6m* This represents 39% of total digital display advertising revenue up 129% on 16.0m in H *Native advertising includes: in-feed publisher controlled content, in-feed advertiser controlled content, discovery/recommendation units and customised / innovation formats Source: IAB / PwC Digital Adspend H
34 Digital Formats (Desktop & Mobile) YoY Growth Rates H % 89% 67% 59% 21% Social Media* Video on Demand (VOD)* Mobile All Display** Paid Search Note: all formats are not mutually exclusive there is some overlap. All growth figures are cross platform *Includes Social VoD, ** Includes Social and VoD Source: IAB / PwC Digital Adspend H
35 Questions? Many thanks to: All of our Adspend Participants. Richard Phelan, Ross Moylan and Nuala Nic Ghearailt, PwC. For More go to or 35
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