IAB Ireland PwC Online Adspend Study H1 2014

Transcription

1 IAB Ireland PwC Online Adspend Study H Suzanne McElligott CEO, IAB Ireland October 30th, 2014 In association with: 2 1. Introduction Survey of all major Irish online media owners Includes desktop and mobile adspend in 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.) 1

2 2. Study Methodology 3 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 31 leading publishers, representing multiple websites. 13 sales houses and ad networks also participated. All data was provided to PwC on a confidential basis. The data is prepared by PwC based on the figures provided by participants, which have not been independently verified or audited by PwC. Publishers & Ad Networks / Sales House AD2ONE, Adconion, Adforce, Associated Mail, Brightroll, communicorp, Crimtan, Digitize New Media Ltd, Distilled Media, DoneDeal, eircom, Electric Media Sales, Empathy Marketing, Entertainment.ie, EU Mom, Facebook*, FCR Media (Goldenpages), Flashpoint, Google*, Gradireland, Homewise, i-believe, Independent Digital, Irishracing.com, Landmark Media, Linkedin*, Maximum Media, Media Brokers, Microsoft Advertising, Mirror Media, MyHome.ie, O2 Media, OnlineTradesmen.ie, Page7 Media, Rollercoaster.ie, RTÉ**, saongroup, Sheology, Sky Media, Specific Media, The Irish Times, The Journal, Ticketmaster Ireland, TradeDoubler Ireland Ltd, Trader Media Group, TV3, Twitter*, Yahoo! *Based on data from leading agencies and Industry Reps ** RTÉ Annual Report

3 Study Content 5 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 and Twitter spend based on consultation with advertising agencies and industry representatives. IAB s Advisory Council is comprised of Aegis Media, Core Media, Group M & Omnicom Media Group. Digital Adspend 6 Desktop Traditional online advertising viewed on a desktop PC or laptop, accessed via an Internet connection: Display advertising (embedded, interruptive, social, VoD, , display affiliate, etc.) Search Classified Mobile / Tablet Advertising that has been specifically tailored and served on a mobile device including tablet, accessed via 3G or wifi: Display advertising (rich / non-rich formats, SMS, Social Media, in-app advertising, etc.) Search 3

4 3. Market Background 7 ESRI predict growth 4.95% in % in 2015 Employment growth ESRI predicts approx. 2% growth for year overall. Growth driven by better performance in the net trade sector, a pick up in investment levels and strong budgetary receipts. ESRI Quarterly Economic Commentary, Autumn Consumer Sentiment Irish Consumer Sentiment increased in September 2014 to 92.8 highest level since January This is driven by improving expectations for the year ahead and improving perceptions of the current economic environment (Ciara Morley, ESRI). Sources: KBC / ESRI Consumer Sentiment Index September

5 Nielsen H Adspend in Other Media % change other media adspend yoy H v H Nielsen 9 Grand Total 381.6m +0.7% Cinema 4m +37.2% Radio 37m -3. Outdoor 45m + 7% TV 134.5m +1.4% Press 160.7m Source: Nielsen All Media Spend H What s driving Online Adspend On the go devices 10 85% have access to an on the go online device - this figure is up from 79% last year. 64% have a smartphone Half of year olds watch live or catchup TV on portable devices. Tablet ownership has almost doubled in the past 12 months from 25% to 4. Source: eircom ehss Report Sept

6 What s driving Online Adspend Audience 11 Ireland s Internet usage has soared by 75% due to an explosion in smartphone and tablet computers as well as digital content consumption (Inex Feb 2014) Tablet sales outsell PC s by 2 to 1 in Ireland Source: INEX Irish Internet Industry Exchange March 2014 Online traffic peaks show huge increase from 40GB per second in Feb 2013 to 70GB per second in Feb Fibre broadband now reaches over half of all homes in the country. Mobile will increase its share within Internet Access Segment in Ireland 12 Source: PwC Global Entertainment & Media Outlook

7 What s driving online adspend - Technology and Innovation 13 More choice for Brands / Publishers Richer Ad Formats Video on Demand Mobile Opportunities Creative tools making creativity online easier Programmatic Buying 4. IAB Ireland Online Adspend H Gross Online Adspend (Desktop & Mobile) m 7

8 Online Adspend Growth H to H Desktop & Mobile 15 M m 130m H H Record Online Adspend Growth of 40% 20 0 Including Mobile Adspend *Includes estimated Mobile adspend for H at 50% of full year 2012 ( 9.9) = 4.9m Online Desktop Adspend H (like for like, excluding mobile) 16 M % growth yoy H to H H1 Full year m 97.2m m 110m m 132m m 148m m 163m m H H Full Year Source: IAB PwC Adspend Studies: H

9 Digital Media Mix (Desktop & Mobile) H m 35% 45m 54% 71m Search Display Classified The breakdown represents 100% of the overall total. Digital Media Mix (Desktop & Mobile) H % 14m 36% 34m 4 45m Search Display Classified The breakdown represents 100% of the overall total. 9

10 Social Media Display Advertising in H (Desktop & Mobile) m 67% growth yoy from 6.4m H *Based on actual spend figures submitted by social media sites, leading ad agencies and industry reps. Pre/Post roll H (Desktop & Mobile) 20 7m 75% growth yoy from 4m in H

11 Desktop Digital Media Mix H Excluding Mobile 21 15% 14m 40% 37m 45% 42m Search Display Classified The breakdown represents 100% of the desktop total. Desktop Digital Media Mix H Excluding Mobile 22 19% 14.5m 37% 28.8m 44% 33.6m Search Display Classified The breakdown represents 100% of the desktop total. 11

12 23 Display Breakdown (Desktop) H % 1m 2% 1m 0.2m 1 4m 9% 3m 5 19m Embedded formats 5 Social Media Display (excluding VoD) 10% Pre/Post roll video (including social VoD) 15% Sponsorships and tenancy 1 15% 5m The breakdown represents 100% of the desktop display total. 10% 4m million Interruptive formats 9% Display affiliate advertising 2% advertising 2% Other 24 Display Breakdown (Desktop) H1 2013, 0.3m 4%, 1.1m, 0.9m Embedded formats 5 9% 2.7m 12% 3.4m 2.2m 12% 3.5m m Social Media Display (excluding VoD) Pre/Post roll video (including social VoD) Sponsorships and tenancy Interruptive formats Display affiliate advertising advertising 12% 12% 9% million Other 4% The breakdown represents 100% of the desktop display total. 12

13 Industry Categories Desktop Display H v H H Finance (15%) Retail (1) FMCG (1) Telecoms (10%) Auto (9%) Finance (14%) Retail (1) FMCG (1) Telecoms (1) Auto (9%) H Industry Category Desktop Display H % 4% 2% 2% 9% 4% Finance 15% 10% 15% 1 1 Retail 1 FMCG 1 Telecoms 10% Auto 9% Entertainment/Media Travel Utilities 4% Government/Public Service 4% Alcohol Technology Education/Training Recruitment/Property 2% Gambling 2% Other 4% Breakdown represents 79% of Desktop Display Total. 13

14 Industry Breakdown Desktop Display H % 2% 4% 14% Finance Retail FMCG Telecoms 14% % 1 Auto Travel Entertainment/Media 9% 7% 7% Utilities Technology 5% Alcohol 1 Government/Public Service Education/Training 2% 9% 1 Gambling Recruitment/Property 2% Breakdown represents 77% of Desktop Display Total. Other 4% 28 Industry Categories Desktop Classified H v H H Recruitment and Property 37% Auto 35% H Auto 36% Recruitment and Property 35.4% 14

15 29 5. IAB Ireland Mobile Adspend H Gross Mobile Adspend 37m 132% Growth yoy from 16m* H *Adjusted figure for Mobile Adspend H IAB Ireland Mobile Adspend H Search 77% 29m Display 2 8m Gross Mobile Adspend 37m 15

16 IAB Ireland Mobile Adspend H Search 70% 11m Display 30% 5m Gross Mobile Adspend 16m 32 Mobile Display Adspend by type H m 0.1m 0.1m 0.1m Social Media Display including SMS/MMS 1m Mobile Content - Video/TV (including Social VoD) Standard display non-rich format 5 20% 14% 1m Standard display rich format 9% 4m Mobile Content - advertising around music/games Content sponsorship 2m Tenancy deals (long term strategic partnerships) Dedicated tablet and 'on device' advertising million Breakdown represents 100% of Mobile Display Total. 16

17 Industry Categories Mobile Display Adspend H v H Mobile Display H FMCG (15%) Entertainment & Media (15%) Finance (12%) Retail (12%) Telecoms () Mobile Display H FMCG (25%) Travel (14%) Retail (1) Entertainment & Media () Automobile (7%) Utilities (7%) Industry Breakdown Mobile Display H % 2% 0.7% FMCG 15% Entertainment & Media 15% Finance 12% 15% 6% 7% 4% Breakdown represents 100% of total for mobile display as provided by publishers and ad networks.. 12% 12% 15% Retail 12% Telecomms Other Alcohol 7% Automobile 6% Travel 4% Government/Public Service Technology Utilities 2% Recruitment/Property 2% Education & Training Gambling 0.7% 17

18 Industry Breakdown Mobile Display H % 1.0% % FMCG % % 7.2% Breakdown represents 100% of total for mobile display as provided by publishers and ad networks % 14% Travel Retail Entertainment & Media Automobile Utilities Alcohol Finance Telecomms Gambling Education & Training Government/Public Service Recruitment/Property Technology Other 25% 14% 1 7% 7% 7% 7% 3.5% YOY growth selected digital formats H % 120% 100% 80% 60% 40% 20% 0% Year on Year Growth rates for selected digital formats 132% 75% 67% 5 Mobile VOD Social Media Paid Search Note: Formats are not mutually exclusive there is some overlap 18

19 37 Ireland vs Global Trends in E&M Spend % -5% Internet Ad Internet Access V Games TV Ad OOH ad -2% Filmed Ent B2B TV Subs/Licenses Radio Music -2% Book Pub - Mag Pub News Pub Ireland Global 2% 0% 0% 6% 6% 5% 6% 5% 5% 9% 12% 1 Source: PwC GlobalEntertainmentand MediaReport, Growth in Ireland s internet advertising will lead all E&M segments by Slide Internet advertising ( m): Total % CAGR Total Segment (weighted) 12.2% Mobile Internet Advertising Wired Internet Advertising 20. Source: PwC GlobalEntertainmentand MediaReport,

20 Next Study 39 Next IAB PwC Study Full Year 2014 March Questions? Many thanks to: All of our Adspend participants Nuala Nic Ghearailt, PwC For More go to or 20