OVK ONLINE- REPORT 2014/02. Overview of figures and trends

Transcription

1 OVK ONLINE- REPORT 2014/02 Overview of figures and trends Results of AdEx Benchmark 2013

2 CONTENTS 3 Foreword Comparative study of online advertising Net advertising pie for digital advertising (display and keyword marketing) Net advertising pie for digital display advertising (online and mobile) Monthly development of net advertising investments Top 10 online advertising forms Online advertising according to sector Reach of the Internet in Germany Reach of mobile Internet in Germany Reach of the OVK marketers Online activities of Internet users Digital customer potential by sector Receptiveness to advertising Brand awareness Status symbols European online advertising market Circle of Online Marketers (OVK) in the BVDW The Bundesverband Digitale Wirtschaft e.v. German Association for the Digital Economy (BVDW) The Arbeitsgemeinschaft Online Forschung (AGOF) e.v. Working Group for Online Media Research (AGOF) Online media planning and more with AGOF Notes on the AGOF method Notes on the methodology behind the OVK advertising statistics Publishing information

3 FOREWORD 5 Paul Mudter, Chairman of the Circle of Online Marketers (OVK) in the BVDW DEAR READERS, In an increasingly competitive general advertising market, digital advertising has held its ground well, including in the first six months of This is all the more impressive considering how, since the start of this year, we have sharpened our focus on the online advertising market by including net investments in digital display advertising (online and mobile) in the OVK advertising statistics, thereby providing a more valid illustration of market conditions. The advertising pie represented for the first time on a net basis in this OVK Online Report reflects the still significant position of the Internet as the second strongest advertising medium in the media mix. Net investment in digital display advertising (online and mobile) and keyword marketing, account for one quarter of the net advertising pie, underlining the key role of the Internet as a communication channel. The strong position of digital display advertising (online and mobile) is clearly apparent from a second illustration of the net advertising pie, which only takes account of display investments for the medium of the Internet. They show that one in every ten euros spent on advertising goes to digital display advertising (online and mobile). Consequently, in terms of digital display advertising (online and mobile) alone, the Internet ranks fourth among all media types, refuting any arguments that cast doubt on the strength of digital display advertising (online and mobile). This is also emphasised upon comparison with other European markets; based on market volumes for digital display advertising (online and mobile), Germany ranks second in Europe. Digital Economy (BVDW) has made a slight downward adjustment to its forecast for net investment in digital display advertising (online and mobile) for 2014, and is now assuming a growth rate of 6.8 %. The net advertising volume this year would, therefore, amount to 1.41 billion, which is still a new record. Our analysis of the top 10 online advertising forms by gross investment the data is not yet (fully) available in a usable granularity on a net data basis reveals the main driving forces of online advertising. Large display surfaces or video formats enjoyed particularly high growth rates in the first half of This is also a good indicator that innovative formats and multimedia options are still two of the major advantages of online advertising as is direct customer dialogue with no media discontinuity, something that can only be achieved with mobile advertising. Combined with the now extensive knowledge of the effectiveness of digital advertising including the information in the OVK Branding Effects Database or the study on The Power of Creation the relevance of the Internet as a media offering in the media mix remains as high as ever and plays a vital role as part of a holistic communication strategy. We hope you enjoy reading the OVK Online Report 2014/02. Paul Mudter Chairman of the Circle of Online Marketers (OVK) within the BVDW Nonetheless, although the monthly trend in net advertising investment in digital display advertising (online and mobile) suggests a generally positive propensity to invest, looking back at the comparison periods indicates that the increase in the first six months is rather modest on the whole. Given this robust yet not overly dynamic trend in net investment in digital display advertising (online and mobile), the Circle of Online Marketers (OVK) in the German Association for the

4 COMPARATIVE STUDY OF ONLINE ADVERTISING 7 In 2014 the net volume for digital display advertising (online and mobile) is likely to total 1.41 billion euros. NET INVESTMENT IN DIGITAL DISPLAY ADVERTISING (ONLINE AND MOBILE) CONTINUES TO RISE Starting this year, the OVK advertising statistics are based on the extrapolated PWC reports (PricewaterhouseCoopers) and, as such, provide an even more transparent illustration of the online advertising market, because they now depict net investments in digital display advertising (online and mobile). The investments are extrapolated for the entire market in Germany on the basis of the net figures for digital display advertising (online and mobile) reported via PWC. To preserve the meaningfulness of OVK advertising statistics and still enable retrospective comparison of the latest results, we have used a process that is retroactive to At the same time, as a result of the change to the way advertising investment is presented, the OVK advertising statistics now concentrate on digital display advertising (online and mobile), and do not present search and affiliate revenues. Further information on the mobile advertising market figures can be found in the latest MAC Mobile Report 2014/02. Given the robust net advertising investment in digital display advertising (online and mobile) in the first six months of 2014, albeit at a slightly slower pace, the OVK has adjusted the growth rate cited in its last OVK Online Report 2014/01 downwards by 1.6 percentage points and is now assuming a growth rate of 6.8 percent for the current year. This would bring the net volume of Internet advertising to 1.41 billion euros. This would be a new record for the net volume of digital display advertising (online and mobile), exceeding the previous year s level by 90 million euros (net). OVK advertising statistics for digital display advertising (online and mobile) from 2012 to 2013, with a forecast for (+9.3 %) OVK statistics for 2012 OVK statistics for 2013 OVK forecast for 2014 Source: Circle of Online Marketers (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) e.v.: OVK report (extrapolation of the net figures reported to PWC for digital display advertising (online and mobile) on the total market (including commission)) / data for the German market in m Advertisers continue to underestimate the many and varied opportunities offered by digital communication which, thanks to large format and/or multimedia advertising forms (for more on this, see page 9), also allows more complex messages or products requiring more in-depth explanation to be presented to a wide group of consumers. Furthermore, because digital communication is interactive, queries can be resolved directly, without any media discontinuity during the dialogue. Transparency comes courtesy of comprehensive planning data for the target group potential available on the stationary and mobile Internet (for more, see pages 20 to 22). In addition, intelligent tracking tools or advertising effectiveness research conducted in parallel to campaigns, help with detailed success analysis and cost control (+6.8 %)

5 NET ADVERTISING PIE FOR DIGITAL ADVERTISING (DISPLAY AND KEYWORD MARKETING) 9 Net investment in digital display advertising (online and mobile) and keyword marketing accounts for 25.5 percent of the net advertising pie. THE INTERNET IS STILL THE SECOND STRONGEST MEDIUM IN THE MEDIA MIX As in the past, this OVK online report again includes a diagram of the net advertising pie, to demonstrate the relevance of the various media types in the media mix; this time, however, the information is presented for the first time on the basis of net advertising investment. Hence, the role of the media types used in the media mix is documented for the first time on the basis of valid market conditions. The BVDW was heavily involved in collecting and calculating the figures for the Internet category (online and mobile and keyword marketing). The data for the individual media types for 2013 is based on the data of the German Advertising Industry Association Zentralverband für deutsche Werbewirtschaft (ZAW). The great importance of the Internet as an advertising medium also reflects its now obvious status as a permanent fixture of every consumer s daily life as emphatically underlined by the online/ mobile penetration in the German population illustrated on page 16 and 17. The Internet is playing an increasingly pivotal role, be it for communication, searching for product information or shopping. Needless to say, the availability of more and more devices desktop PCs, laptops, tablets, smartphones is a contributory factor. Furthermore, the growing number of digital advertising formats in use enables advertisers to specifically respond to consumers differing usage situations. This guarantees appropriate target group dialogue, which the consumer perceives as enriching rather than irritating. The net advertising pie for 2013 again demonstrates the strong role of the Internet as an advertising medium. Net advertising investment in digital display advertising (online and mobile) and keyword marketing, accounts for a 25.5 percent share which means it represents a good quarter of the total net advertising pie. It is second only to TV, with a 28.4 percent share. Of the other media types, only daily newspapers with 20.2 percent achieve a double-digit share of the media mix; for the other media channels, the percentages are all in the single digits from consumer publications (8.5 percent) to outdoor advertising, trade publications (6.1 percent each), and radio (5.1 percent). Net advertising pie for 2013 Digital advertising (display and keyword marketing) 6.1 % 6.1 % 8.5 % 20.2 % 5.1 % 28.4 % 25.5 % Television Internet (display advertising*, keyword marketing**) Daily newspapers Consumer publications Outdoor advertising Trade publications Radio Source: German Advertising Industry Association (Zentralverband für deutsche Werbewirtschaft ZAW) / (2014) *combined extrapolations by the BDZV, VDZ, VPRT based on the net advertising revenues for online and mobile display recorded by the BVDW/OVK (2013: 1,319.00); the basis for the combined extrapolation is the ZAW net definition. The basis of the BVDW/OVK figures is the international standard net definition of IAB (Net I), **The Bundesverband Digitale Wirtschaft e.v. German Association for the Digital Economy (BVDW)

6 NET ADVERTISING PIE FOR DIGITAL DISPLAY ADVERTISING (ONLINE AND MOBILE) 11 With a share of 9.6 percent, digital display advertising (online and mobile) ranks fourth among the media types represented in the media mix. ONE ON EVERY TEN EUROS SPENT ON ADVERTISING GOES TO DISPLAY ADVERTISING (ONLINE AND MOBILE) To illustrate the strength of digital display advertising (online and mobile) in the communication mix, this report contains a second diagram of the net advertising pie in which the Internet category is represented solely by the net advertising investments in digital display advertising (online and mobile). The result refutes all assessments, which cast doubt on the relevance of digital display advertising (online and mobile): In the net advertising pie for 2013, the Internet (in the form of digital display advertising (online and mobile)) accounts for 9.6 percent, i.e. one in every ten advertising euros net is spent on digital display advertising (online and mobile). As a result, digital display advertising (online and mobile) on the Internet is the fourth most popular advertising option used in the media mix, a clear indicator of the strong role of this advertising format as part of a holistic communication strategy. TV (34.5 percent), daily newspapers (24.5 percent) and consumer publications (10.3 percent) rank above the placement of display adverts on the Internet. Digital display advertising (online and mobile) on the Internet is a mere 0.7 percentage points behind ads in magazines, further proof of how important online and mobile advertising has already become. As use of the stationary and mobile Internet increasingly becomes a matter of course, modern consumers also expect their brands to have an online presence commensurate with this. For sustainable target group communication, brand manufacturers budgets must follow their customers to where they are increasingly found on the Internet! The increasingly innovative advertising options tailored to each usage situation help advertisers make their brand an ever-present companion in many of the life situations experienced by consumers, and nowhere more so than in mobile display advertising; to achieve unique anchorage among consumers, using environment-based services, intelligent targeting and so on. Net advertising pie for 2013 Digital display advertising (online and mobile) 6.2 % 7.4 % 7.4 % 34.5 % 10.3 % Television Internet (display advertising*) Daily newspapers Consumer publications Outdoor advertising The other media types in the media mix all rank below digital display advertising (online and mobile) on the Internet; this includes all outdoor advertising and adverts in trade publications, with 7.4 percent each, and radio advertising at 6.2 percent % 9.6 % Trade publications Radio In light of the increasingly digitalised world in which 21st century consumers live, it is safe to assume that digital display advertising (online and mobile) on the Internet will play an even stronger role in the media mix over the coming years, becoming an even more central component. Source: German Advertising Industry Association (Zentralverband für deutsche Werbewirtschaft ZAW) / (2014) *combined extrapolations by the BDZV, VDZ, VPRT based on the net advertising revenues for online and mobile display recorded by the BVDW/OVK (2013: 1,319.00) The ZAW net definition is the basis for the combined extrapolation. The basis of the BVDW/OVK figures is the international standard net definition of the IAB (Net I).

7 MONTHLY DEVELOPMENT OF NET ADVERTISING INVESTMENT 12 MAC-ANBIETERÜBERSICHT TOP 10 ONLINE ADVERTISING FORMS 13 MONTHLY INVESTMENT IS MOSTLY HIGHER THAN IN PREVIOUS YEARS LARGE FORMAT AND MULTIMEDIA ADVERTISING ARE POPULAR In the first six months During the first six months with the exception of March and April of 2014, a new record net advertising investment in digital display advertising (online and was achieved overall for mobile) outstripped the already high level during the same period in net advertising investment in the first two euros mark, and in two other months fell only slightly short of that previous years. In four of the months, they topped the 100 million quarters of a year. level. In the first half of 2014, a net total of million euros was invested in digital display advertising (online and mobile), which equates to a good 45 percent of the net advertising investment forecast for this year. Given that propensity to invest is continuing to rise in the second half of the year (based on experience, this is due mainly to the Christmas business), this trend is expected to gain further positive momentum and the forecast net volume for 2014 should be met. Monthly development of net advertising investment in digital display advertising overall The ranking of the top 10 online advertising formats is still based on gross advertising investment, as the data is not (yet) available in this granularity on a net basis. The growth in spending compared with last year demonstrates which formats enjoy the greatest popularity. At 88 million euros, for instance, billboard ads posted growth of 38 million euros in the first six months compared with the same period last year, a 76 percent gain which is the highest growth rate of all the online advertising formats covered. At 23 million euros, pre-roll is another frontrunner, achieving an increase of 23.5 percent compared with the first half of With a total of 121 million euros gross, it ranks third, illustrating the growing demand for video advertising. Second and first place respectively go to wallpaper (175 million) and ad bundles (182 million). Making its début in the rankings is take-over which, with growth of 14.3 percent in the first six months, drew investment of 40 million euros. In the first six months, billboard ads and preroll show the strongest growth rates year on year for gross advertising investment Jan Feb. March Apr. May June July Aug. Sept. Oct. Nov. Dec Mio. Euro Mio. Euro Sources: Circle of Online Marketers (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) e.v.: OVK report (extrapolation of the net figures reported to PWC for conventional display advertising (online and mobile) on the total market (including commission)) / data for the German market in m Mio. Euro Top 10 online advertising formats (gross) Ad bundle Wallpaper Pre-roll Skyscraper Medium rectangle Billboard Ad rectangle Take-over Leaderboard Microsite in millions of euros HI 2013 H Source: Nielsen Media Research (Online Advertising, data valid as of June 2014). As the marketers SONSTIGE, HI-MEDIA and EBAY (in part) do not provide data at advertising slot level, they have not been included. Data for the German market in m

8 ONLINE ADVERTISING ACCORDING TO SECTOR 15 In most of the economic sectors covered, conventional online advertising has a double-digit share of the media mix. CONVENTIONAL ONLINE ADVERTISING IS PART OF ALL SECTORS The ranking of advertising investment by industry will continue to be covered by the Nielsen data, as data of this granularity is not provided in the PWC report. The following gross advertising investment by economic sector clearly shows that advertisers from all industries value online advertising as an important component of their communication mix, although the extent of their online commitment varies. Miscellaneous advertising, which includes charitable organisations and corporate advertising, remains the undisputed frontrunner. Online advertising is far and away the most significant component of the media mix here: at 49.4 percent, almost one in every two euros spent now goes to online advertising. At the same time, with a gross total of 407 million euros, this segment also has the highest absolute investment total and, in the first six months of 2014, again spent 88 million euros more than in the same period last year. The second-placed HGV industry also saw strong growth in absolute online advertising investment: in the first half of the year, this industry spent 32 million euros more than in the first six months of the previous year, giving a total investment figure of 186 million euros. At the same time, the online share of the media mix accounts for 16.1 percent in this sector. It is, therefore, roughly on a par with the financial sector, in which online advertising also accounts for just under a fifth (18.7 percent) of investment. Among telecommunication providers (15.3 percent) in the tourism and catering segment (13.9 percent) and in the services sector (12.6 percent) too, the proportion of online advertising in the media mix is already in the two-figure range as a percentage. Only in four of the top-10 sectors, namely retail and mail order, personal care, food and media, does advertising investment in online advertising still remain in the single-figure range as a percentage. As regards absolute online advertising investment, the two top spenders already mentioned Miscellaneous Advertising and the Automotive sector are accompanied by three more economic segments in which online investment tops 100 million: the services sector (148 million euros), the retail and mail order sector (130 million euros) and the financial segment (108 million euros). In the other five industries, gross advertising investment in the first half of 2014 is in the two-figure million range. By and large, the digitalisation of communication has taken hold in all economic sectors, and the industries that are still somewhat restrained in this regard still have plenty of potential to increase online budgets, which in turn will impact positively on the overall trend in investment in digital display advertising (online and mobile). Advertising investment in online advertising analysed by area of business (top 10) (gross) Miscellaneous advertising Automotive market Services Trade Finance Telecommunications Media Tourism and catering Personal care Food % % % % % % % % % % Mio % 407 Data in m H H Data as % share of online in the media mix Source: Nielsen Media Research (online advertising, data valid in June 2014), data for the German market in m

9 MAC-ANBIETERÜBERSICHT REACH OF THE INTERNET IN GERMANY 16 MAC-ANBIETERÜBERSICHT REACH OF MOBILE INTERNET IN GERMANY 17 MORE THAN 56 MILLION GERMANS FROM AGE 10 ARE ONLINE ALMOST HALF OF ALL GERMANS ARE MOBILE USERS In Germany, the basic 76.6 percent of the German-speaking resident population in Germany million people aged 14 and above, accessed a mobile-enabled mobile facts population for internet above the age of 10 has used the Internet in the last 12 months, which website or a mobile app during the three-month period covered by provides data on reach facts is the German- equates to million people. The widest group of users (WNK, the AGOF mobile facts survey. They are the basic population and structure for 134 speaking resident popu- i.e. people who used the Internet at least once within the last three for mobile facts and make up 45.2 percent of the German-speaking mobile-enabled web- lation above the age of months) constituted 75.8 percent of the population, equating to resident population aged 14 and over. This strong mobile usage shows sites and 131 applica- 10. This group consists million people. This reach is evidence of the regular Internet use that mobile has now become a wide-reach communication channel tions. of million people. among Germans and emphasises the role the online medium plays as and, therefore, an attractive advertising medium. an equal advertiser in the media mix. Mobile users are still predominantly male, aged up to 49 years, educa- The Internet is now used by all age groups and almost everyone ted and employed, with a relatively high net household income. How- under the age of 50 is online. The percentage of Internet users in each ever, we must assume that these structures will more closely reflect of the age groups between 10 and 39 years is significantly more than the overall population in the foreseeable future, as has happened with 90 percent, and among 40 to 49 year-olds, 90.5 percent are online. the stationary Internet. Of the year-olds, 78.7 percent which is more than three quarters use the Internet. In the over-60s group, four out of ten Smartphones are now a standard accessory in almost every life cir- (39.6 percent) use the Internet. cumstance and the spectrum of functions used reflects this. As well as communication, smartphones are also used for research, obtaining information, banking and shopping. Online penetration according to age group Mobile users in Germany Unique users of mobile Internet in an average month: Total population: million** Mobile phone users: million** million* Jahre Internet users (WNK)/Other Internet users Non-Internet users Example: 96.5 % of 10- to 13-year olds are Internet users (WNK and other users) and 3.5 % of 10- to 13-year olds are non-internet users. / Based on: 106,677 cases (Internet users from the age of 10 in the last three months) / 323 cases (other Internet users) / 10,654 cases (non-internet users) / Data in % // as a percentage / Source: AGOF e.v. / internet facts / Data for the German market Example: million persons from the age of 14 years are mobile users, i.e percent of the German-speaking resident population from the age of 14 has accessed a mobile-enabled website or a mobile app within the three-month period surveyed / Basis: *42,230 cases or **112,184 cases / German-speaking resident population in Germany from 14 years / Data in millions Source: AGOF e.v. / *AGOF mobile facts or ** internet facts / Data for the German market

10 REACH OF THE OVK MARKETERS 18 MAC-ANBIETERÜBERSICHT ONLINE ACTIVITIES OF INTERNET USERS 19 REACH OF THE OVK MARKETERS internet facts internet facts reports the net reach of the marketers operating includes data from a total together in AGOF. The table below shows the net reach of the of 54 marketers for 741 marketers organised in the OVK, based on the advertising media total offers and 3,479 compiled in internet facts A marketer s net reach does not booking units. always include their entire portfolio. Net reach of the OVK online marketers (alphabetical) Average month March-May Reach in % (based on Internet users from the last Net reach in millions Vermarkter three months) of unique users Axel Springer Media Impact BAUER ADVERTISING ebay Advertising Group Germany G+J Electronic Media Sales HiMedia Deutschland InteractiveMedia CCSP IP Deutschland iq digital MAIRDUMONT MEDIA Microsoft Advertising netpoint media OMS SevenOne Media SPIEGEL QC TOMORROW FOCUS MEDIA Unister Media INTERNET USERS EXHIBIT VARIED USAGE INTERESTS AND ACTIVITIES ON THE INTERNET The ranking of services used at least occasionally is topped at over 80 percent by the use of search engines and sending and receiving personal s. These were followed by international news, online shopping, weather services and regional or local news and online banking. The other top-ranking main areas of use are useful topics such as test results, sites relating to eating, drinking and leisure or communication services such as communities and forums. The main areas of use vary depending on age. Among 14- to 19-yearolds, for instance, services in the areas of flirting and contacts, chat forums or Messenger and weblogs/blogs is disproportionately high. Topics relating to family and children, job markets and online banking are most popular among 30 to 49-year-olds. And the over-50s make above-average use on the Internet of services relating to sports results, test results and weather pages. Key usage areas top 10 Search engines Sending and receiving personal s International news Online purchases or shopping Weather Regional or local news Online banking Test results Eating, drinking and leisure Communities and forums As part of internet facts, Internet users from the age of 14 were asked questions about a total of 22 topics and main areas of use United Internet Media Yahoo! Germany Number of unique users (in millions) and percentage for an average month in the period under investigation March to May 2014 / Basis: 106,677 cases (Internet users from the age of 10 in the last three months) / Source: AGOF e.v. / internet facts / Data for the German market Values in % Example: 86.6 % of all Internet users from the age of 14 (WNK) use search engines at least occasionally. / Based on: 101,330 cases (Internet users from the age of 14 in the last three months) / How often do you use the following sources of information or offers: occasionally, rarely or never? / illustration of the top two box: Frequent or occasional usage/values in % / The top 10 from a total of 22 subjects are shown / Source: AGOF e.v. / internet facts / Data for the German market

11 DIGITAL CUSTOMER POTENTIAL BY SECTOR 21 The basis for the industry analyses are unique users (UU) from age 14 in the last 3 months from internet facts or mobile facts DIGITAL CUSTOMER POTENTIAL FOR DEFINED INDUSTRIES Stationary and mobile Internet offer attractive customer potential. While online potential is the frontrunner in absolute terms, in regard to product interest, mobile potential claims a higher percentage almost across the board. Stationary or mobile access to the Internet has become a matter of course for consumers when searching for detailed product information, interactive advice, or individual services. Given the wide variety of devices available to them, they simply choose the means of access best suited to their usage situation. Whether used on a stationary or mobile device, the Internet plays an important role for many people when it comes to obtaining information. Online and mobile industry potential: Product interest Basis: Persons from age 14/online: million UU or mobile: million UU Online and mobile industry potential: Information searching on the Internet based on: Persons from age 14/online: million UU or mobile: million UU Internet users in % Unique users in millions Internet users in % Unique users in millions Online Mobile Online Mobile Entertainment Fashion and footwear Perfume and cosmetics FM CG: Food and beverages Travel and tourism books Entertainment electronics Telecommunications Furniture and homeware Health Computers Automotive Sport and fitness Insurance Toys and baby goods Finance Travel and tourism Entertainment Fashion and footwear Books Telecommunications Furniture and homeware Entertainment electronics Automotive Perfume and cosmetics Computers Health Toys and baby goods Sport and fitness FMCG: Food and beverages Insurance Finance % % Online potential Mobile potential Online potential Mobile potential Example: 76.7 % of Internet users from age 14, i.e million unique users, are interested in products from the entertainment industry. / Based on: 101,330 cases (Internet users from age 14 in last three months) or 42,230 cases (mobile Internet users in last three months) / In which of the following products are you (very) interested? / Data expressed as a percentage and in millions of unique users / Source: AGOF e.v. / internet facts and mobile facts / Data for the German market Example: 82.1 % of Internet users from the age of 14, which equates to million unique users, have gone online at least once in the past to find information on travel products. / Based on: 101,330 cases (Internet users from age 14 in last three months) or 42,230 cases (mobile Internet users in last three months) / For which of the following products have you searched for information on the Internet? / Source: AGOF e.v. / internet facts and mobile facts / Data for the German market

12 DIGITAL CUSTOMER POTENTIAL BY SECTOR 22 RECEPTIVENESS TO ADVERTISING 23 DIGITAL CUSTOMER POTENTIAL FOR DEFINED INDUSTRIES ONLINE ADVERTISING HITS THE MARK The high percentage of approval among respondents is proof that More than 23 million The AGOF facts & figures are currently available for 16 industries and are published at regular intervals. The publications are available to download at What the online and mobile customer potential clearly shows is that a digital presence and advertising activities on the stationary and mobile Internet are potentially very lucrative for companies in all industries, because they intensify dialogue with existing customers while at the same time giving access to new target groups. Given that consumers live in an ever more digitalised world, this interactive customer communication and a multi-platform strategy have now become a vital component of contemporary marketing. online advertising hits the mark: 44.3 percent of Internet users from age 14, i.e million people, admit to frequently being made aware of interesting products or new ideas through advertising. Young users, in particular aged between 14 and 29 (51.0 percent) and women (46.6 percent), demonstrate above-average susceptibility to Internet advertising messages. At 45.7 percent, the 30 to 49 age group is slightly above the figure for Internet users as a whole, while men come in just below at 42.2 percent of Internet users. Just under four out of ten Internet users over 50 (37.2 percent) are motivated Internet users are receptive to advertising, and their attention is drawn to products through advertising. by online advertising. The products studied in the context of the respective sector analysis can be subdivided as follows This high acceptance of advertising allows advertisers to exploit the direct interaction potential offered by the Internet in order to build a close dialogue with interested parties or potential buyers. Automotive: Books: Computers: Entertainment: Used cars, new cars, hire cars Books Computer hardware or accessories, computer software excluding games Computer and video games, tickets, films/series on DVDs/Bluray, music CDs, chargeable music/films/ series to download from the Internet Receptiveness to advertising Finance: Investments, shares, securities, funds; credit FMCG food & beverages: Non-alcoholic drinks, beer, other alcoholic drinks and spirits, frozen products and ready meals, dairy products, confectionery and savoury snacks Health: Healthcare products or medicines, wellness products Advertising has more frequently drawn my attention to interesting products or new ideas. Widest group of Internet users (WNK) 44.3 % Fashion and footwear: Ladies or gents clothing, footwear Men 42.2 % Furniture and homeware Furniture or home accessories, large domestic appliances such as fridges, washing machines, cookers Perfume and cosmetics Cosmetics for women/men, perfume for women/men, bodycare, haircare or dental care products Travel and tourism Rail tickets, flight tickets, hotels, hire cars, holidays/last-minute trips Women Aged 14 to % 51.0 % Toys and baby goods Toys, baby goods Sport and fitness Sports goods and equipment Telecommunications: Mobile phones or smartphones, landline phones or fax machines (only in mobile facts), mobile tariffs/contracts, packages for telephone, TV and Internet from one provider, DSL or other broadband Internet connection Entertainment electronics: Flat-screen TVs, DVD or Bluray players/recorders and/or hard-disk recorders, home cinema/surroundsound systems, digital cameras, navigation systems Insurance: Health insurance, life assurance and private pension schemes, other insurance such as car, household or indemnity insurance Aged 30 to 49 Aged 50 and over 37.2 % 45.7 % % Example: 44.3 % of all Internet users from the age of 14 (WNK) have more frequently become aware of interesting products or new ideas through advertising / Based on: 101,330 cases (Internet users from the age of 14 over the last three months) / The top-two box is absolutely or predominantly correct. / Values in % / Source: AGOF e.v./ internet facts / Data for the German market

13 MAC-ANBIETERÜBERSICHT BRAND AWARENESS 24 MAC-ANBIETERÜBERSICHT STATUS SYMBOLS 25 BRANDED GOODS ARE VERY POPULAR STATUS SYMBOLS ARE IMPORTANT Internet users show themselves to be highly brand and quality-aware, so are particularly receptive to high-priced products and services. Because brand awareness is so pronounced among Internet users, the Internet is the ideal platform for branding campaigns. More than half (56.1 percent, million) of Internet users feel that branded goods are generally of a higher quality, and four in ten (40.4 percent, million) say that brands give them a sense of security when purchasing. The majority are also willing to pay more for quality: 78.1 percent, which is more than three quarters of users, agree with this statement. At 33.0 percent, more than a third of Internet users (17.39 million people) consider branded products important. At 36.4 percent, people who spend freely from households with a monthly net income exceeding 3,000 euros are particularly brand aware, whereas the lower income levels are below the level of the online WNK. When comparing genders, brand awareness is significantly more prevalent among men (37.2 percent) than women (28.4 percent), who have the lowest value of the target groups covered. TO WELL OVER SIX MILLION INTERNET USERS Given their high brand awareness, it is no surprise that 12.4 percent of Internet users from age 14 (6.55 million people) say that they are drawn to products that are considered a status symbol. Status symbols are clearly valued most by teens and twenty-somethings: at 20.2 percent, a disproportionately high percentage of these age groups admit that status symbols are important to them. However, men are also disproportionately susceptible to status symbols (14.6 percent) whereas women (10.1 percent) attach less importance to them. This is also true of 30 to 49-year-olds and is most pronounced among the over-50s. A look at the spending power of status symbol-oriented Internet users shows that a disproportionately high percentage of them are from a household with a monthly net income of 3,000 euros or more so can afford luxury goods. Manufacturers of luxury goods find attractive target group potential with high spending power online. Brand awareness Receptiveness to status symbols Branded products are important to me. I am drawn to products that are considered a status symbol. Widest group of Internet users (WNK) 33.0 % Widest group of Internet users (WNK) 12.4 % Men 37.2 % Men 14.6 % Women 28.4 % Women 10.1 % Household net income of up to 1,000 euros 28.9 % Aged 14 to % Household net income of up to 3,000 euros 31.8 % Aged 30 to % Household net income of 3,000 euros and over 36.4 % Aged 50 and over 7.7 % % % Example: 33.0 % of all Internet users from the age of 14 (WNK) consider branded products important / Basis: 101,330 cases (Internet users from the age of 14 over the last three months) / The top-two box is absolutely or predominantly correct. / Values in % / Source: AGOF e.v./ internet facts / Data for the German market Example: 12.4 % of all Internet users from age 14 (WNK) like products that are considered a status symbol. / Based on: 101,330 cases (Internet users from the age of 14 over the last three months) / The top-two box is absolutely or predominantly correct. / Values in % / Source: AGOF e.v. / internet facts / Data for the German market

14 EUROPEAN ONLINE ADVERTISING MARKET 27 ONLINE ADVERTISING MARKET DISPLAY ADVERTISING ACHIEVES IN EUROPE GROWS BY ALMOST STRONGEST MARKET GROWTH IN PERCENT IN 2013 All the online segments in Europe being monitored recorded a positive The development of Last year, the European online advertising market had a volume of 27.3 billion euros. From 2012 to 2013, the European online advertising market s volume increased by 2.9 billion euros to 27.3 billion euros, which corresponds to an 11.9 percent growth rate. In the same period, the American advertising market grew by 17.1 percent and now has a volume of 32.2 billion euros. trend in 2013 obviously advertisers across Europe value the various facets of online communication for managing their campaigns in a targeted manner. The frontrunner in terms of market growth in Europe is display marketing. In 2013, it achieved growth of 14.9 percent compared with the online advertising market in Europe was driven chiefly by display advertising and keyword marketing last year. In general terms, the positive trends in both markets show that online advertising has secured a firm footing in target group communication in North America and Europe. The lead of the US where the market volume is currently 4.9 billion higher also points to the potential dynamics of the European market in the future. Based on experience, the European markets reflect the US trends with a slight time lag. The the previous year, accounting for a market volume of 9.2 billion, or a good third. Keyword marketing came next, with positive growth of 13.0 percent, thus reaching 13.4 billion euros, which equates to a market volume of just under half. Online classifieds/small ads posted growth of 3.6 percent last year, which equates to a market volume of 4.6 billion euros or just under one fifth. growing relevance of the Internet in follower markets such as Turkey illustrates the further expansion potential of the medium in Europe. Market development of digital advertising in Europe Annual comparison of the online advertising market in Europe versus the USA (in bn) In % 0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 % 40 % Classifieds & directories 3.6 % Display 14.9 % Paid-for-Search 13.0 % In Mrd. Euro EU USA Market volume 2013 in bn Market growth 2013 compared with 2012 in % Source: IAB Europe AdEx Benchmark 2013 Source: IAB Europe AdEx Benchmark 2013

15 EUROPEAN ONLINE ADVERTISING MARKET 29 Half of advertising investment in display advertising in Europe is attributable to Germany, Great Britain and France. GERMANY IS THE SECOND BIGGEST MARKET FOR DISPLAY ADVERTISING IN EUROPE Half of advertising investment in display advertising in Europe is attributable to Germany, Great Britain and France. Online advertising investment in Europe reached a new high in 2013, with a total volume of 27.3 billion euros. Combined with further two-figure growth, this shows that Europe s digital advertising market has successfully maintained its significance and resilience despite economic uncertainties in some regions of Europe, and this is no doubt due in part to the large number of innovative advertising formats and the increasing monetisation of mobile platforms. The strongest growth for display advertising in 2013 was seen on the advertising markets in Turkey (32.3 percent), Austria (28.3 percent) and Ireland (28.0 percent). These high growth rates are due in part to the still moderate size of the market in these countries in absolute terms. In contrast, as one of the biggest markets, Germany achieved growth of 9.3 percent in display advertising last year. This moderate growth in relation to the European average is due in part to the fact that, in absolute terms, the German display market already has a relevant scale as is also apparent from net advertising customers and these lower growth margins are a natural consequence of the fact that it has already exhausted much of the potential. European comparison of the growth and size of online advertising markets Of the 9.2 million euros in advertising investment in display advertising, Europe s three biggest online advertising markets alone (the UK, Germany and France) account for 49.2 percent of the investment, or 4.53 billion euros. If we then include Italy and the Netherlands, with a total of around 6 billion euros, these top 5 online advertising markets make up almost two thirds (64.9 percent) of the European market volume. The study gathered figures for 26 European countries in total. With its market volume of 1.32 billion euros, Germany along with the UK (2.19 billion euros) and France (1.02 billion euros) is one of Europe s strongest online advertising markets in terms of display advertising. Keyword marketing achieved a growth rate of 12.0 percent last year in Germany, which equates to a market volume of 2.56 billion euros, whilst online classifieds/small ads play a more subordinate role with growth of 4.9 percent and a market volume of 0.8 billion euros. Online ad market growth 40 % 35 % Russia 30 % 25 % Turkey 20 % Slovakia Austria 15 % Serbia Hungary Italy Czech Republic Switzerland Romania 10 % Greece Poland Ireland Germany 5 % Finland Croatia Netherlands France Bulgaria Spain Belgium 0 % Slovenia -5 % Online ad spend per capita ( ) Source: IAB Europe AdEx Benchmark 2013 Bubble size: market value in m Norway UK Sweden Denmark

16 CIRCLE OF ONLINE MARKETERS (OVK) IN THE BVDW 31 ONLINE-VERMARKTERKREIS (OVK) UNITS AND LABS IN THE OVK The OVK creates standards and transparency. The Circle of Online Marketers (OVK) is the central body of online marketers in Germany. Nineteen of the largest German online marketers have come together under the umbrella of the BVDW (Bundesverband Digitale Wirtschaft e.v. or German Association for the Digital Economy) to steadily raise the profile of online advertising. The Association s primary aims are to increase market transparency and planning reliability, as well as to draw up standardisation and quality assurance measures for the online marketing sector as a whole. To this end, the OVK works continuously to standardise advertising formats and the processes which can help to make the production, delivery and monitoring of online campaigns easier. These standards are constantly being extended in due consideration of changing market requirements. Four units make up the OVK: the Ad Technology Standards unit, the Market Figures unit, the Mobile Advertising (MAC) Unit and the Advertising Impact and Market Research unit. The units have experts from the relevant specialist areas working with them. The Ad Technology Standards unit is the main body for developing the standards for promotional products. These standards are to be enforced by all members of the OVK and serve as a guide for the whole online advertising sector. The aim is to make the production and delivery of online campaigns easier and to make the going-live process run smoothly. These standards are constantly being extended and adapted to the needs of the market. The Unit works on the best solution for the German market while working closely with international bodies and associations. Continuous optimisation of market development The OVK also implements key projects such as conferences, studies and development measures. The organisation is involved with national and international bodies for the further development of the sector. The primary tasks of the Market Statistics unit include gathering and analysing market data. The data can be used for orientation purposes and also indicates trends and areas with potential. This unit works very closely with companies and organisations such as Nielsen Media Research, AGOF and PWC. The Advertising Impact and Market Research unit was conceived in order to develop and jointly analyse wider studies relating to more than just an individual marketer. The experts in this circle also work on models for qualitative performance indicators and on ideas for standards in cross-marketer studies. The Mobile Advertising Unit (MAC) is the successor to the Mobile Advertising Circle (MAC). This project group was set up to take account of the specific interests of network operators, mobile marketers, operators of mobile platforms and online marketers with mobile units. The fine Arts of digital Media

17 BUNDESVERBAND DIGITALE WIRTSCHAFT (BVDW) e.v. 32 THE WORKING GROUP FOR ONLINE MEDIA RESEARCH (AGOF) E.V. 33 BUNDESVERBAND DIGITALE WIRTSCHAFT (BVDW) e.v. The German Association for the Digital Economy (Bundesverband Digitale Wirtschaft (BVDW) e.v.) is the central body representing the interests of companies that pursue digital business models and are active in the sphere of digital value added. With member companies from many different segments of the Internet industry, the BVDW has interdisciplinary roots, and therefore has a comprehensive overview of the issues facing the digital industry. The BVDW has taken on the task of making the efficiency and the benefits of digital offerings, content, services and technologies transparent, thus promoting their use in the economy as a whole, in society, and in government. The association is also an expert point of contact for the latest topics and developments in the digital industry in Germany and, by providing statistics, data and facts, is a valuable source of information on one of the key future fields of the German economy. BVDW is engaged in continuous dialogue with politicians, the media and other national and international interest groups, and supports the dynamic development of the sector in a results-oriented, practical and effective way. Founded on the pillars of market trends, market intelligence and market regulation, the BVDW pools first-rate digital know-how to help shape the positive development of the leading growth industry in the German economy, in a sustainable way. At the same time, as the central organ for the Digital Economy, by issuing standards and binding directives for industry players, the BVDW ensures market transparency and high-quality offerings for users and the general public. We are the Internet. WITH INTERNET FACTS AND MOBILE FACTS, AGOF DELIVERS DIGITAL CURRENCY FOR THE GERMAN MARKET The role of the Working Group on Online Research (AGOF) is to ensure transparency and practical standards in the research of online media offerings, remaining independent of the interests of individuals. It does this by compiling the requisite performance indicators in collaboration with the market and makes these indicators available in relevant studies; it performs this role not only for the conventional Internet, but also for other digital media segments. The leading German marketers represented in AGOF are organised into sections for this purpose and together with their market partners, they forge ahead in their respective segments with the planning, provision and further development of market reach research and planning parameters. With its market media study internet facts and the unique user The AGOF market media (UU) performance indicator contained therein, AGOF has established the currency of consistent Internet reach as the basis for Interoriented planning of digital studies enable marketnet media planning in the market by transferring the reach section media based on conventional standards. and submitting it to the methodological authority of agma. The study itself, of which the section on reach also appears as ma Online on agma, is published by the Internet section of AGOF. internet facts shows data on structure and reach for over 750 Internet advertising media used by participants in the study. The Mobile section of AGOF takes responsibility for the market media study mobile facts and publishes it. The study publishes planning data about mobile reach and the structure of mobile products, thereby supporting the further establishment of the mobile reach currency. In this way mobile facts has already reached the level of a standard for mobile reach, comparable in significance and quality to internet facts in the online field.

18 ONLINE MEDIA PLANNING AND MORE WITH AGOF 34 NOTES ON THE AGOF METHOD 35 THE AGOF BRAND FAMILY OFFERS A WIDE VALID REACH AND STRUCTURAL DATA, RANGE OF ONLINE MEDIA PLANNING THANKS TO MULTI-METHOD APPROACH In addition to its established market media studies, internet facts and mobile facts, AGOF will also soon be publishing digital facts. The AGOF Academy is a logical extension of AGOF s market-oriented activities. AND ONLINE MARKETING SERVICES In the autumn of 2014, the first-ever prototype of AGOF digital facts will be published, which brings together the existing market media studies internet facts and mobile facts. As a comprehensive digital reach study, it will provide a valid planning base for cross-digital online and mobile campaigns. In this new and practical format, digital facts will support routine digital planning and booking activities in the future. The AGOF Academy is a logical extension of AGOF s market-oriented activities. The aim is to supply all interested market partners with the requisite knowledge associated with the use of TOP and AGOF s market media studies in online media planning and marketing, and thus to ensure effective and successful use of the Internet as an advertising platform. The training and development programme will also be continually and significantly expanded. As well as various seminars on the use of the TOP analysis and planning programme with different levels and emphases such as Digital Media Planning or Marketing Digital Media Offerings the AGOF Academy will also offer advanced training on the advertising market, media industry, marketing and word of mouth. Other highlights are the training courses available for the first time this year on basic selling, self and stress management, and sales approaches to customers. The complete seminar matrix can be found at AGOF supply data and performance indicators on various sectors within the digital economy as a basis for high-quality online media planning, e.g. for the (conventional) Internet and for mobiles. The AGOF studies make a decisive contribution in establishing the respective digital advertising media in the media mix, as they make the performance figures of the online advertising media comparable and therefore provide a valid planning basis. The methodological basis of internet facts is a three-pillar model, with technical measurement of usage (grass-roots survey) at its centre, supplemented by an on-site questionnaire and a telephone survey amongst a representative sample of the population hence the term three-pillar model. Only when all three pillars interact is it possible to determine data on reach and structure of online advertisers. The three pillars are linked together in an innovative way for this. A detailed description of the method can be found at: The methodological basis of mobile facts for a measurement suitable for media combines three survey approaches: a technical measurement, a panel survey, and preset elements from AGOF internet facts representative of the population. Taking into account methodological requirements and economic restrictions, this methodological model delivers the greatest possible data depth at the present time, and meets the high validity requirements of reliable mobile media planning. In so doing, it combines the advantages of (incorruptible) technical measurement and fruitful personal data collection (panel survey) with the modern analysis methods of market research. A detailed description of the method can be found at: With its market media studies, internet facts and mobile facts, AGOF provides a comprehensive database for all market partners in the digital advertising market. The data records of internet facts and mobile facts are available within AGOF s TOP evaluation and planning tool.

19 NOTES ON THE METHODOLOGY OF THE OVK ADVERTISING STATISTICS 37 CALCULATIONS OF NET AND DEFINITION OF THE SEGMENTS PWC reports and Nielsen data as the data basis GROSS ADVERTISING SPENDING From 2014, the advertising investment in digital display advertising will be shown on an extrapolated PWC basis (as is the case for the MAC mobile report as well). For this, the net figures reported via PWC for digital display advertising (online and mobile) are extrapolated for the overall German market (including commissions). The presentation of search and affiliate sales will be dropped for Individual trends (ranking of advertising investment by format and industry) will continue to be covered in the OVK online report by the existing Nielsen data, as data of this granularity does not exist in the PWC report. The OVK advertising revenues are based on an extrapolation of the net figures for digital display advertising (online and mobile) reported via PWC for the entire market (including commissions). The data do not contain any search results or technical sales (e.g. ad servers). The data only state the sales revenue generated in Germany. Display advertising is a form on online advertising in which an advertiser s campaign is displayed on a website using graphical advertising formats (display ads). Display ads can contain text, graphics, video and audio information. All advertising revenues (by the definition given above) that are not allocated to the mobile category are counted as part of this category. Advertising revenues, online display advertising, mobile display advertising The calculation of gross advertising volume in conventional online advertising is based on the online advertising statistics from Nielsen. This in turn is currently based on reports from 23 marketers who every month register the gross advertising spending recorded in the accounting systems and ad servers. The data are not based on so-called crawler statistics, which means that qualitative attributes, in particular of online advertising campaigns such as targeting, CPC business or advertising in password-protected areas, can be illustrated more accurately. Advertising revenues are allocated to the mobile category if provider recognition for mobile is present (e.g. mobile-enabled websites, mobile apps). Recognition is effected by including a mobile tag, sensor or library. In addition, at least one of the following criteria must be met: potential mobile advertising media present according to the MMA and IAB definition, mobile domain, e.g. m, mobile, wap, and separate preparation of the content for display on mobile end devices. All the data is evaluated with reference to the applicable price lists and the media performances achieved. This approach enables direct comparisons to be made with printed adverts in other types of media that are covered by the Nielsen advertising statistics; the printed adverts are likewise evaluated gross.

20 PUBLISHING INFORMATION 38 OVK ONLINE-REPORT 2014/02 Place and date of publication Düsseldorf, 10 September 2014 Publisher The Bundesverband Digitale Wirtschaft e.v. German Association for the Digital Economy (BVDW) Berliner Allee Düsseldorf Tel: Fax: Internet: Director Christoph N. v. Dellingshausen President Matthias Ehrlich Vice-Presidents Harald R. Fortmann, Achim Himmelreich, Ulrich Kramer, Burkhard Leimbrock Contakt Circle of Online Marketers (OVK) within the BVDW Katharina Brandt, Head of Online Marketing Register of Associations number Register of Associations Düsseldorf VR 8358 Legal information All data and information in this publication has been carefully researched and checked by the Bundesverband Digitale Wirtschaft (BVDW) e.v. This information is a service provided by BVDW. Neither the Bundesverband Digitale Wirtschaft (BVDW) e.v. nor the companies involved in the production and publication of this document can accept any liability for whether the information is accurate, complete or up-to-date. The contents of this publication and/or any references to material belonging to third parties are copyright protected. Any duplication of information or data, particularly the use of documents, parts of documents, images or other types of content, requires prior consent from BVDW or the relevant copyright owner (third party).