IAB Report on Online Advertising Spend The Netherlands Q July 2015 DRAFT

Transcription

1 IAB Report on Online Advertising Spend The Netherlands Q July 2015 DRAFT

2 Introduction Since 2010, IAB and Deloitte are publishing the Online Ad Spend Report for the Netherlands. The content of this report is driven by data and information gathered directly from the online community, including publishers, advertisers and media planners. Due to a great number of participating key industry players we are able to gain extensive insight in the online advertising market. Realization of this study: Collection Aggregation Conversation Validation Publication Deloitte collects data covering the majority of the market Participants data is processed based on desk research and expert opinions Initial findings are verified with industry experts and media buyers Findings are cross-referenced and validated with selected respondents Final findings are presented to the IAB and industry participants Survey methodology Our current report covers the total net online advertising spend in the Netherlands during Q and is based on information supplied by 33 participating companies. Figures are adjusted for double counting, based on information provided by the survey participants The figures are drawn up on the basis of company input and have not been verified by Deloitte Only aggregated results are published, individual company information is held in strict confidence with Deloitte 2

3 Executive summary Online advertising spend the Netherlands Q Online ad spend +8,9% Mobile +49% Social +43% Programmatic +40% Online Video +26% Spend on online advertising increased with +8,9% in revenues during Q1 2015, mainly due to good performance of classifieds, directories and listings (+12,1%) and display advertising (+9,7%). Within the Netherlands the net spend on online advertising currently totals 377m for the 1 st quarter of % of display advertising is spent on mobile devices and showed an increase of +49% in revenues in respect to the first quarter of last year. Mobile devices are currently the only source of revenue growth within display advertising, while spend on desktop/laptop devices stagnates. Advertising spend on Social platforms (e.g. advertising on Facebook, Twitter or LinkedIn) grows with an estimated +43% during Q to 28m in revenues. In m was the estimated spend on advertising on Social platforms. Spend on display advertising through programmatic channels gains more traction and increased with 40% in Q Main contributors are the shift of Interruptive (e.g. rich media) and the overall increase of inventory towards the exchange (from both settled and recently joined publishers). Since 2013 spend on Online Video advertising is growing steadily and realized +26% in revenues during Q Online video accounts for 15% of the overall display advertising spend and shows a traditionally low (but increasing) share during the start of the year. 3

4 Online advertising quarterly spend Revenue per online advertising category 4 Online quarterly market (m ) Note: The Internet figures we report are net/net figures, meaning that the figures are reported after agency discount that in some cases may apply; Search and classifieds, directories & listings are based on a limited number of data points; Growth rate and/or additions may not equal presented numbers due to rounding; Source: Annual reports, Survey respondents, Deloitte analysis +8,9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Y/Y Revenue Growth 2014 Q Classifieds +8% +12,1% Display +13% +9,7% Search +11% +6,8% Online advertising market Revenue spend on online advertising has grown with +8,9% in Q in respect to the same period of previous year. Publishers indicate less growth than the double digits achieved in 2014, mainly due to stabilization of the market after the economic recession that ended fall Classifieds, directories and listings The best performing category in online advertising in Q is classifieds, directories and listing. Revenues in this category increased with +12,1%. The main drivers behind this growth are the strong development of e-commerce (products and services) and the increased number of open vacancies. Display advertising Online advertising through display advertising increased with +9,7%. The main drivers in the display market are video and social through in-app and mobile advertising as the budget spent by advertisers is following consumer time spend in these segments. Paid search advertising We estimate that spend on search engine advertising increased with +6,8% in Q The majority of the revenue is generated by Google. However the search engine competitors of Google are starting to monetize more per usage share as buyers want to diversify and are willing to invest in more than one search engine.

5 Display advertising spend Trending topics Video Social Online video advertising (m ) / Y/Y advertising spend growth (%) 13 Advertising on social websites (m ) / Y/Y advertising spend growth (%) 12 18% 15 17% 22% 14 24% 17 48% 15 36% % 39% 20 62% 62% 60% % 23% % 30 37% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q % % 26% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q % 80% 60% 40% 20% 0% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Trending in online display advertising One of the trending topics in online advertising for several years is the spend on social and the spend on online video due to the large reported revenue growth in annual reports of market players active in this segment. This year we will start to report our estimation on social spend. Our Social estimations are similar to our Google revenue spend estimate, largely based on media buyers data combined with publicly available information. Online video Advertising spend on online video increased with +26% in respect to the same period last year. First quarter spending is traditionally low and totals 23m in spend on pre- /mid- / post rolls during Q Social We estimate that ad spend on social platforms (incl. Facebook, Twitter, LinkedIn) reached 28m in Q1 2015, a market share of 19% of the display advertising spend. The realized share in the Netherlands is little behind UK/US markets where social (mainly Facebook) approximates 24% of the total display spend. Looking back, we estimate that the total social ad spend realized 95m during 2014 in the Netherlands, a 16% market share within online display advertising. Source: IAB UK/US, Survey respondents, Deloitte analysis 5

6 Trend of spend per format Share of display advertising revenue per format % Allocation of display revenue per format Note: Text links and other formats are consolidated in this figure. Source: Survey respondents, Deloitte analysis 6 19% 18% 18% 18% 17% 16% 16% 17% 16% 11% 12% 14% 15% 57% 56% 15% 16% 15% 53% 17% 49% 13% 13% 13% 14% 57% 57% 17% 13% 53% 18% 16% 49% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 15% 10% 59% Text links/ Other Y/Y Revenue Growth 2014 Q % -3,2% Video +30% +26% Interruptive +1% -9% Embedded +13% +15% Online display advertising formats Within display we measure 4 distinct formats (video, embedded, interruptive and text links) Online video Online video grows with +26%, and is from last year onwards the fastest growing format in terms of ad spend. Embedded formats Embedded (e.g. banners) is the most mature format within display. Lifting on the increased consumption of content via mobile devices, the advertising spend on embedded formats increased with +15% in revenue, a stable growth in respect to the +13% result of Interruptive formats The advertising spend on interruptive formats (incl. rich media, over the page and page takeover) declined with -9%. Interruptive shows a strong negative trend in performance when compared to 2013 when it was the strongest performing format. This could be the effect of large migration of interruptive formats towards the exchange, where overall prices are lower especially during low demand seasons. Text links/ Other formats Text links/ other formats is a combination of text links and promoted- / branded content and shows similar advertising spend as in Unlike the interruptive formats, these formats are generally fully integrated within the look and feel of the publisher platform.

7 Online advertising spend per medium Share of display advertising revenue per medium Share of display revenue Q % 4% 24% Web browser Y/Y Revenue Growth Q % Mobile +49% -11% Revenue per device This year the used definition for mobile has been changed. In previous studies the share of mobile was based on the advertiser allocation of mobile budget. However due to the introduction of technical cross device solutions such as responsive websites there is a rising share of budget that is device independent (from the advertisers perspective). We discussed this trend with the taskforce mobile of IAB Netherlands, and agreed that mobile revenue is now based on revenue generated by impressions delivered onto the actual device of the consumer. Mobile 24% of display revenue is spend on mobile devices (incl. phone, tablet and in-app). Compared to previous mobile share of 18% in Q4 2014, the extra 6% is partially generated by device independent budget that is delivered to mobile. Web browser The majority of display revenue is generated through desktop and laptop devices however the growth of this revenue stream is starting to evaporate. advertising traditionally shows the least share within display advertising during Q1 and accounts for 4% of the revenue in 2015, showing a decline compared to the 5% market share of Q1 last year. Note: Mobile is ad revenue by impressions delivered to phone, tablet or in-app. Source: Survey respondents, Deloitte analysis 7

8 Trend of programmatic spend Programmatic display advertising spend per format Programmatic market Display advertising through programmatic channels (m ) / Y/Y Revenue growth (%) Programmatic % 26% % 43% 44% 40% 36% 35% 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q % 80% 60% 40% 20% 0% The online display advertising spend through programmatic channels increased with 40% in Q1 2015, totaling 37m in revenues. Catalyzer for this revenue growth is the strong shift of interruptive (e.g. rich media) formats finding their way to the exchange originating from traditional sales channels. Currently interruptive accounts for 14% revenue share within the programmatic exchange. Programmatic video still accounts for a small portion of the revenue stream within the exchange with a 5% market share, however programmatic video is likely to more than double in revenues this year due to its high momentum. Programmatic display formats growth breakdown Y/Y Growth 2014 Embedded +35% +29% Interruptive / rich media Y/Y Growth Q % +130% Video +126% +138% Note: Programmatic market includes estimates of the size of FBX and GDN. Source: IAB programmatic study, Survey respondents, Deloitte analysis 8

9 Methodology: Estimation For each report Deloitte tries to include as many companies as possible to ensure an accurate representation of the online advertising market, however due to various reasons we cannot collect figures from all companies active in the online advertising market. Non-participating companies Baseline revenue of non - participating companies is initially estimated by IAB Taskforces/ Deloitte research / Media buyers Company X Company B Estimated growth New revenue numbers Company X Company B Estimated revenue Growth of medium to small non participating companies 1. Trend in growth from previous submissions 2. Known growth of similar companies (proxy) Growth of large non participating companies 1. Trend in growth from previous submissions 2. Results from annual reports 3. Known growth of similar companies (proxy) Google and Facebook related revenue: 1. Quarterly earnings 2. Google and Facebook media buyers feedback 3. Public datasets Participating companies Company A Known growth Company A Known revenue Realized net/net revenue is disclosed to Deloitte Period 1 Period 2 9

10 Participating companies 1. addurance 2. Adfactor 3. Autotrack 4. BrandDeli 5. Cadreon 6. Daisycon 7. Funda 8. Mannenmedia 9. Marktplaats 10. Massarius 11. MediaScience 12. Microsoft 13. MobPro 14. Nakko Media 15. Nochii Online Marketing 16. NRC Media 17. Perform Group NL 18. Persgroep 19. RTL Nederland 20. Sanoma 21. SBS Broadcasting 22. Semilo 23. Smartclip 24. SpotXchange Benelux 25. Ster 26. Telegraaf Media Groep 27. The Online Company 28. To Tweakers 30. Voetbal International 31. Widespace 32. Yonego 33. Zoover 10

11 Contact For questions concerning this research feel free to contact: Nathalie La Verge Deloitte Deloitte Digital Tel: +31 (0) Nathalie La Verge is a manager with the Risk Services practice from Deloitte with more than 10 years of experience in risk consulting for companies in the Technology, Media & Telecommunications (TMT) industry. Nathalie leads all Deloitte projects commissioned by IAB Netherlands. Jorrit Sloot Deloitte Data Analytics Tel: +31 (0) jsloot@deloitte.nl Jorrit Sloot is a consultant within the Deloitte Risk Services practice and specialized in risk analytics, data modeling, mathematical and quantitative data analyses for the digital industry. Jorrit supported the research of all IAB Ad Spend/ Programmatic and Search studies for the Netherlands since Govaert Plesman IAB Nederland Tel: +31 (0) govaert@iab.nl Dutch IAB research includes the IAB Netherlands/ Deloitte Ad Spend Study, all IAB commissioned research, and assisting Dutch IAB members with their research projects. Also responsible for shaping the IAB knowledge base so that it meets members' needs moving forward. 11

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