OVK ONLINE- REPORT 2014/01. Overview of figures and trends

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1 OVK ONLINE- REPORT 2014/01 Overview of figures and trends OVK Creation study 2013

2 CONTENTS 3 Foreword Method change Comparative study of online advertising Monthly development of net advertising investment Online advertising according to sector Top 10 online advertising formats Trends in online advertising formats Reach of the Internet in Germany Reach of mobile Internet in Germany Reach of the OVK marketers Reach of online media in an average month Reach of online media in an average week Online activities of Internet users Overview of potential customers to reach online by sector Open-mindedness regarding advertising Opinion formers and multipliers Trendsetters OVK Creation study 2013 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 of the OVK advertising statistics Publishing information

3 FOREWORD 5 Paul Mudter, Chairman of the Circle of Online Marketers (OVK) in the BVDW DEAR READERS, Starting with this OVK Online-Report we will be offering you a more transparent picture of the online advertising market by using the PWC (Pricewaterhouse-Coopers) reports extrapolated on to the German market and so presenting for the first time the net spending on digital display advertising (online and mobile). This means we are meeting the demands made for years by market partners to make the OVK online advertising statistics reflect the media and advertising market as realistically as possible. At the same time, these new OVK advertising statistics raise the profile of the Circle of Online Marketers (OVK) in the German Association for the Digital Economy (BVDW), as we are now concentrating exclusively on our original core business of display advertising and have stopped showing search and affiliate sales. In order to maintain the validity of the OVK advertising statistics and obtain a retrospective view of current results, in addition to showing the net advertising investment in 2013 for digital display advertising (online and mobile) we have also calculated the 2012 spending retrospectively on a net basis in exactly the same way as the forecast for the current year 2014 is based on net figures. Only individual trends, such as the 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 (yet) exist on a net data basis. Moreover, when considering the trends the relationship between the individual industries and formats is more relevant than the absolute sales. For 2013 the net advertising spending on online and mobile display ads comes to 1.32 billion. This corresponds to an increase of 9.3 percent compared to the previous year and illustrates the uninterrupted relevance of digital communication. Advertisers value the large bandwidth of online advertising formats and the associated options for interactive dialogue with target groups as a firm component in their communications strategy. In view of the positive market dynamics, the OVK also assumes increasing net investment in digital display advertising for the current year With the assumed growth rate of 8.4 percent, the net advertising volume this year would amount to 1.43 billion, a new record. With the growing spending on display advertising, the demand from advertisers and agencies for comprehensive evidence of the advertising impact obtained and for optimisation approaches has increased at the same time. For this reason, the OVK has as part of its study The Power of Creation addressed a central problem in this connection: What is the significance of creation in advertising success? The investigation is currently the largest German study on awareness and the impact of creation in the online area. The main results of the study are present on pages 25 to 29. We hope you enjoy reading the OVK Online-Report 2014/01. Paul Mudter Chairman of the Circle of Online Marketers (OVK) within the BVDW

4 METHOD CHANGE 7 Showing the net spending on digital display advertising ensures greater transparency. EXPLANATIONS OF NEW METHODOLOGY IN THE OVK ONLINE ADVERTISING STATISTICS The Circle of Online Marketers (OVK) intends to reflect the current media and advertising market in the OVK online advertising statistics. This can only be achieved by continuously adapting the statistics to match changing circumstances in the market. The advertising investment in digital display advertising will therefore be shown on the extrapolated PWC basis (Pricewaterhouse Coopers) with immediate effect. The PWC statistics contain the monthly reports from all OVK marketers on the net advertising expenditure generated from digital display advertising on marketed online and mobile advertisers. This includes the net advertising expenditure for all income that resulted in an accounting transaction with the marketing companies. One consequence of this change is that the new online advertising market figures (net) are no longer comparable with the previous reports (gross). Links and comparisons in any form before-after comparisons, comparisons of increases or decreases in printed adverts on a quarterly or annual basis, etc., are factually incorrect and consequently inadmissible. Only individual trends, such as the ranking of advertising investment by format and industry, will continue to be covered in the OVK Online-Report by the existing Nielsen data, as such net data of this granularity does not (yet) exist in the PWC report. The net figures reported to PWC for digital display advertising (online and mobile) are extrapolated in the next step to represent the entire German market (including agency commissions). The data do not contain any search results or technical sales (e.g. ad servers). They simply state the sales revenue generated in Germany. The portrayal of search and affiliate sales in the OVK online advertising statistics has been dropped as part of the change. The new OVK advertising statistics focussing solely on the overall digital display advertising (online and mobile) also represent a raising of the profile of the OVK.

5 COMPARATIVE STUDY OF ONLINE ADVERTISING 9 In 2013 the net volume for digital display advertising (online and mobile) amounted to a total of 1.32 billion. STABLE GROWTH FOR NET SPENDING IN DIGITAL DISPLAY ADVERTISING With the change in presentation of the advertising investment, the OVK advertising statistics will in future concentrate on digital display advertising, while the portrayal of search and affiliate sales will be dropped. The spending is extrapolated for the entire market in Germany on the basis of the net figures for digital display advertising (online and mobile) reported via PWC. For a better arrangement, the new basis for the data will come into effect not just for the past year 2013, but also for the previous year Further information on the mobile advertising market figures can be found in the latest MAC report 2014/01. The net volume for digital display advertising (online and mobile) last year was 1.32 billion. This figure shows the real sales revenue, and for the first time the OVK statistics show the actual volume of the online advertising market. The net spending on digital display advertising rose by 112 million compared to the previous year, corresponding to growth of 9.3 percent proof of the growing importance of the Internet as an advertising medium. The importance of digital display advertising is due principally to the advantages of digital communication specific to the medium: Target group dialogue can be conducted interactively and without media discontinuity, optimum campaign targeting is ensured by comprehensive planning data and the possibility of optimising campaigns at any time. Transparent tracking tools also facilitate detailed analysis and cost control. Advertising effect research to accompany the campaigns furthermore documents successes and its advertising impact indicators help with rating the campaign and the direction to be taken by future planning. Further optimisation approaches are provided by studies such as the current OVK study The Power of Creation, which gives practical design tips for a sustained boost to the potential of online advertising media further details can be found as from page 25 of this report. OVK advertising statistics for total digital display advertising from 2012 to 2013, with a forecast for (+8.4 %) In view of the uninterrupted strong demand for digital display advertisings, the Circle of Online Marketers is assuming a similarly positive outlook for Taking the starting level into account, the OVK forecasts continued stable growth of 8.4 for the display advertising market in This would bring the net volume of Internet advertising up to 1.43 billion (+9.3 %) OVK statistics for 2012 OVK statistics for 2013 OVK statistics 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

6 MONTHLY DEVELOPMENT OF NET ADVERTISING INVESTMENT 10 ONLINE ADVERTISING ACCORDING TO SECTOR 11 MONTHLY INVESTMENTS IN DIGITAL CONVENTIONAL ONLINE ADVERTISING DISPLAY ADVERTISING CONTINUE TO IS IN DEMAND IN ALL INDUSTRIES In 2013 the monthly net spending broke the 100 million barrier in eight months and was only just below it in the following two months, thereby exceeding the previous year s level in almost every month. INCREASE AT A HIGH LEVEL The chart showing the net advertising investment and consequently the more valid illustration of market conditions shows the high importance of digital display advertising and the high demand for this form of advertising unchanged on a month-by-month basis. Compared to the previous year, the monthly net advertising investment in 2013 was higher in every month with one exception. A new record was set each month in the traditionally strong fourth quarter in particular, until the top monthly value for the whole of the past year was achieved in December at million. As stated at the outset in this report, individual trends, such as the ranking of advertising investment by industry, will continue to be covered by the existing Nielsen data, as data of this granularity does not exist in the PWC report. The following advertising spendings are therefore gross values. The analysis of the gross spending on online advertising in 2013 by industry sector shows that advertisers in all industries value the wide variety of options in conventional online advertising as an important component in their communication mix. At the same time, the target group potential represented on the Web (see also page 21) make the Internet an increasingly-important advertising platform for companies from every branch of industry. Classic online advertising belongs to the media mix in all industries, and the share for the majority of the industrial sectors considered was in double digits. Monthly development of net advertising investment in digital display advertising overall Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. When compared with each other, the different industries show different degrees of strength in their commitment to online advertising. By far the highest online share in the media mix comes in the field of miscellaneous advertising this includes charitable organisations and corporate advertising. With 42.0 percent, more than four out of ten euros are spent on conventional online advertising. In the financial sector, the online share of the media mix with 18.3 percent accounts for almost one fifth of the total. In the automotive industry (14.9 percent), the services sector (14.8 percent), the tourism and catering industry (13.6 percent) and the telecommunications industry (13.5 percent) too, the proportion of online advertising in the media mix is already in the two-figure range as a percentage. Only for four of the top 10 industries namely retailing and mail order, personal care, food and media does the advertising investment in conventional online advertising still remain in the single-figure range as a percentage million million 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

7 ONLINE ADVERTISING ACCORDING TO SECTOR 12 MAC-ANBIETERÜBERSICHT TOP 10 ONLINE ADVERTISING FORMATS 13 In terms of absolute online advertising investment, the miscellaneous advertising sector takes first place with 602 million gross. The automotive industry ( 330 million) and the services sector ( 321 million) both spend more than 300 million online. The retail and mail order industry ( 242 million) and the financial sector ( 240 million) both break the 200 million barrier. The gross advertising investments in online advertising by the media, telecommunications, personal care, and tourism and catering industries are still in the three-figure range. Only the food industry with its online investments of 99 million is slightly below this level. Overall both absolute spending and its share of the respective media mix shows that advertisers from all industries are using the Internet as an advertising platform as a matter of course, and the digitisation of communication has arrived in every branch of industry. Advertising investment in online advertising analysed by area of business for 2013 (top 10) WALLPAPER IS BY FAR AND AWAY THE MOST POPULAR ONLINE ADVERTISING FORMAT The ranking of the top 10 online advertising formats for 2013 remains based on gross advertising investment. Generously-sized presentation areas are in demand: With 393 million, wallpaper holds first place among the top 10 advertising formats in 2013 by a wide margin, having attracted more than 34 million than in the previous year. Next comes the banner with 276 million, which is 104 million more than in 2012 and the highest-ranking absolute growth. The ad bundle in third place showed the second largest growth with an increase of 82 million, totalling 263 million last year. Overall, only three of the top 10 advertising formats last year were below the 100 million mark, and six formats the pre-roll, rectangle and halfpage ad in addition to the three mentioned already recorded real growth. Advertisers value generously-sized presentation areas with enough space for complicated advertising messages. Miscellaneous advertising Automotive market Services Retail and mail order Finance Media Telecommunications Personal care Tourism and catering Food % 4.5 % 5.1 % % 7.8 % % 14.8 % m Values in millions of euro % % % Values as a percentage of online share of the media mix 42.0 % Source: Nielsen Media Research (Online Advertising, data valid as of January 2014). Data for the German market in millions of euro Top 10 online advertising formats Wallpaper Banner Ad bundle Pre-roll Medium rectangle Skyscraper Rectangle Microsite Leaderboard Halfpage Ad in millions of euros m Source: Nielsen Media Research (Online Advertising, data valid as of January 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 millions of euro

8 TRENDS IN ONLINE ADVERTISING FORMATS 14 MAC-ANBIETERÜBERSICHT REACH OF THE INTERNET IN GERMANY 15 SPENDING ON ONLINE MOVING IMAGE ADVERTISING STOOD AT 305 MILLION EUROS IN 2013 The gross investment The top 3 online moving image advertising formats are pre-roll, in moving image formats increased by 28 spending in 2013 with 234 million, an increase of 35.3 percent or mid-roll and post-roll. Pre-roll accounted for the majority of gross percent compared to 61 million compared to the previous year. The gross investment the previous year, an for mid-roll almost doubled between 2012 and 2013, and now indication of its growing amounts to 52 million. The picture is similar for post-roll, albeit importance amongst at a lower level, which accounted for 7 million gross last year, an advertisers. increase of 75 percent. Top 3 online moving image advertising formats (in millions of euros) OVER 55 MILLION GERMANS ARE INTERNET USERS Since autumn last year, internet facts has included teenagers between 10 and 13, and expanding the basic population taken into consideration to the resident German-speaking population over 10 years of age. This group consists of million people. 76 percent of this basic population, some million people, used the Net in the reporting period of internet facts. The widest group of users (WNK, people who used the Internet within the last three months) covered 75.1% of the population, equating to million people. The expansion of the basic population shows how teenagers today grow up with the Internet as a matter of course. The 10 to 19-year olds are virtually fully represented in the Web. The percentage of non-users amongst 20- to 39-year olds is also in the low single-figure range. Among 40 to 49-year olds, nine out of ten are on the Internet; while among 50 to 59-year olds the figure is three-quarters. Even among the over 60s, around four out of ten are online, although this group still registers the highest share of non-users compared to the other age groups. The basic population of internet facts now covers over 73 million persons after the expansion to include teenagers between 10 and 13. Pre-Roll Online penetration by age group Mid-Roll Post-Roll in millions of euros m years old Internet users (WNK)/Other Internet users Non-Internet users Source: Nielsen Media Research (Online Advertising, data valid as of January 2014). As the marketers SONSTIGE, HI-MEDIA and EBAY (in part) do not provide data at advertising slot level, they have not been taken into account. Data for the German market in millions of euro Example: 95.9% of 10 to 13-year olds are Internet users (WNK and other users) and 4.1% of 10 to 13-year olds are non-internet users. / Based on: 106,770 cases (Internet users from the age of 10 in the last three months)/387 cases (other Internet users)/10,435 cases (non-internet users) / Data in %//as a percentage / Source: AGOF e.v./ internet facts / Data for the German market

9 MAC-ANBIETERÜBERSICHT REACH OF MOBILE INTERNET IN GERMANY 16 REACH OF THE OVK MARKETERS 17 mobile facts 2013-II provides data on the reach and structure for 89 mobile-enabled websites and 105 applications from 18 marketers. Internet-enabled smartphones are used for a variety of purposes, including communications, searches and information, banking transactions and purchases. ALMOST FOUR OUT OF TEN GERMANS ARE MOBILE USERS According to AGOF mobile facts 2013-II, million adults from the age of 14 years are Mobile Users. This means that 37.9 percent of the German-speaking resident population from the age of 14 have accessed a mobile-enabled website or a mobile app in the onemonth survey period. The mobile Internet therefore continues its advance unabated. It has become indispensable for over 38 percent of users, whether they use it as intensively as the landline Internet or even more frequently. This user behaviour simultaneously underlines the growing importance of the mobile as a communication and advertising platform. At present, the mobile Internet is still being used predominantly by men and relatively young target audiences: 55.3 percent of mobile users are men, and 68.4 percent are aged between 20 and 49 years. The level of education of mobile users is also above-average, with 38.1 percent having passed school-leaving exams. And with 68.9 percent, the broad majority of mobile users are in full employment, with 36.3 percent of users having a monthly net household income of 3,000. REACH OF THE OVK MARKETERS internet facts reports the net reach of the marketers operating together in AGOF. The table below shows the net reach of the marketers organised in OVK based on the advertising media compiled internet facts includes data from a total of 58 marketers. in internet facts A marketer s net reach does not always include their entire portfolio. Net reach of OVK online marketers (alphabetical) Average month September November Reach in % (based on Internet users from the last Net reach in millions Marketer three months) of unique users Axel Springer Media Impact BAUER MEDIA ebay Advertising Group Germany G+J Electronic Media Sales Hi-Media Deutschland InteractiveMedia CCSP IP Deutschland Mobile users in Germany iq digital MAIRDUMONT MEDIA Unique Mobile Users and app users in the last 30 days: Microsoft Advertising netpoint media OMS Total population: million** Mobile phone users: million** million* SevenOne Media SPIEGEL QC TOMORROW FOCUS MEDIA Unister Media United Internet Media Example: million persons from the age of 14 years are mobile users, that is, 37.9 percent of the German-speaking resident population from the age of 14 has accessed a mobile-enabled website or a mobile app within the last 30 days. Based on: * 34,892 cases or ** 112,028 cases / German-speaking resident population in Germany from 14 years / Data in millions Source: AGOF e.v. / * AGOF mobile facts 2013-II or ** internet facts / Data for the German market Yahoo! Germany Number of Unique Users (in millions) and percentage for an average month in the period under investigation September to November 2013 / Based on: 106,770 cases (Internet users from the age of 10 in the last three months) / Source: AGOF e.v./ internet facts / Data for the German market

10 MAC-ANBIETERÜBERSICHT REACH OF ONLINE MEDIA IN AN AVERAGE MONTH 18 REACH OF ONLINE MEDIA IN AN AVERAGE WEEK 19 AVERAGE MONTHLY REACH OF THE TOP 20 ONLINE ADVERTISERS AVERAGE WEEKLY REACH OF THE TOP 20 ONLINE ADVERTISING MEDIA Apart from data on reach and structure, internet facts also contains key data about Internet use, target audiences and e-commerce. internet facts provides data on reach and structure for 772 online advertisers and 3,888 advertising slots. The league table of websites according to their reach in an average month is headed by T-Online with million Unique Users (47.6 percent), followed by ebay.de (25.65 million or 46.6%) and gutefrage. net (17.99 million unique users or 32.7%). Fourth and fifth places are occupied by WEB.DE.de (14.34 million or 26.0%) and BILD.de (13.99 million or 25.4%). Amongst the online sites by reach in an average week, ebay.de is in first place with million Unique Users (25.1 percent), followed by T-Online (13.55 million or 24.6 percent) and WEB.DE (8.16 million or 14.8 percent); gutefrage.net (7.07 million or 12.8 percent) and GMX (6.68 million or 12.1 percent) occupy fourth and fifth places respectively. In addition to data on the average month and the average week, internet facts also provides data about individual months and individual days in the reporting period. AGOF ranking of the top 20 online advertisers in Germany in an average month AGOF ranking of the top 20 online media offerings in Germany in an average week T-Online ebay.de gutefrage.net WEB.DE BILD.de CHIP Online computerbild.de GMX CHEFKOCH.de SPIEGEL ONLINE Yahoo! Germany DasTelefonbuch.de FOCUS Online RTL.de DIE WELT DasÖrtliche wetter.com meinestadt.de Süddeutsche.de Glam Vertical ebay.de T-Online WEB.DE gutefrage.net GMX BILD.de SPIEGEL ONLINE CHIP Online Yahoo! Germany computerbild.de CHEFKOCH.de MSN wetter.com RTL.de FOCUS Online DasTelefonbuch.de DIE WELT DasÖrtliche mobile.de Süddeutsche.de Unique users in millions Number of Unique Users (in millions) for an average month in the period under investigation September to November 2013 / Based on: 106,770 cases (Internet users from the age of 10 in the last three months) / Source: AGOF e.v./ internet facts / Data for the German market Unique users in millions Number of Unique Users (in millions) for an average week in the period under investigation September to November 2013 / Based on: 106,770 cases (Internet users from the age of 10 in the last three months) / Source: AGOF e.v./ internet facts / Data for the German market

11 MAC-ANBIETERÜBERSICHT ONLINE ACTIVITIES OF INTERNET USERS 20 OVERVIEW OF POTENTIAL CUSTOMERS TO REACH ONLINE BY SECTOR 21 Communication, information and transactions the wide variety of main areas of use is evidence of how firmly the Internet has become established in people s daily lives. THE WIDE RANGE OF INTERNET USES REFLECTS THE DIVERSITY OF THE DIGITAL WORLD As part of internet facts, Internet users from the age of 14 were asked about a total of 22 topics and main areas of use. Sending and receiving private s and using search engines came top with over 80 percent of the list of services used at least occasionally. They were followed by online advertising offers, online shopping, international news, regional or local news, and online banking. Other main areas of use focused on useful areas such as product test results or communication services such as communities and fora. A look at the user structures within the individual areas of emphasis reveals certain gender-specific preferences: the great majority of users of sports results/reports, flirting and dating, test results, blogs and international news is male, whereas users of services such as horoscopes, celebrities, families and children, food, drink, leisure and employment sites are predominantly female. LATEST POTENTIAL VIEWED BY SECTOR BASED ON INTERNET FACTS The AGOF sector analyses make potential customers from the age of 14 (WNK) to be found on the Internet for specific sectors visible. Sector potentials for prospective customers looking for information online and for online purchasers; based on widest group of online users (WNK): million Unique Users from the age of 14 Travel sector Entertainment sector Fashion sector Entertainment electronics sector Automotive sector Cosmetics sector Computer sector FMCG food and beverages sector Insurance sector Finance sector Online information gathering Online purchases Internet users in % Unique users in millions Information Shopping % m Main areas of use top 10 Sending and receiving personal s Search engines Weather Online shopping International news Regional or local news Online banking Test results Communities and fora Eating, drinking and leisure Example: 85.6% of all Internet users from the age of 14 (WNK) use search engines at least occasionally. / Based on: 101,343 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: frequently, occasionally, rarely or never? / Top-two box shows frequent or occasional usage / Data in percent / Top 10 shown from a total of 22 subjects / Source: AGOF e.v./ internet facts / Data for the German market Values in % Example: 81.3% 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: 101,343 cases (Internet from the age of 14 users over the last three months) / For which of the following products have you ever used the Internet to look for information? / Have you bought any of the following products over the Internet in the past twelve months? / Data expressed as a percentage and in millions of Unique Users / Source: AGOF e.v./ internet facts / Data for the German market The products studied in the context of the relevant sector analysis can be subdivided as follows: Travel: Entertainment: Rail tickets, flight tickets, hotels, hire cars, holidays/last-minute trips Computer and video games, tickets, films on DVDs/videos/Bluray, music CDs, chargeable music/films to from the Internet Entertainment electronics: flat-screen TVs, DVD or Bluray players/recorders and/or hard-disk recorders, home cinema/surround-sound systems, digital cameras, navigation systems Fashion: ladies or gents clothing, footwear Automotive: Used cars, new cars, hire cars Computers: Computer hardware or accessories, computer software excluding games Cosmetics: cosmetics for women/men, perfume for women/men, body care, haircare or dental care products Insurance: Health insurance, life assurance and private pension schemes, other insurance such as car, household or indemnity insurance FMCG food and beverages: non-alcoholic drinks, beer, other alcoholic drinks and spirits, frozen products and ready meals, dairy products, confectionery and savoury snacks Finance: investments, shares, securities, funds, loans

12 OPEN-MINDEDNESS REGARDING ADVERTISING 22 MAC-ANBIETERÜBERSICHT OPINION FORMERS AND MULTIPLIERS 23 INTERNET USERS VALUE ADVERTISING ALMOST 17 MILLION INTERNET USERS SEE AND BRANDED GOODS THEMSELVES AS LEADERS IN DISCUSSIONS More than four in every ten Internet users consider themselves to be open-minded towards advertising and are very interested in its content million people, which equates to 44.1 percent of Internet users from the age of 14, have more frequently become aware of interesting products or new ideas through advertising. This means that young users in particular aged between 14 and 29 with 51.4 percent, and women with 45.9 percent, demonstrate above-average susceptibility to Internet advertising messages. At 44.7 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 42.6 percent of Internet users. Just under four out of ten Internet users over 50 (37.3 percent) are stimulated by online advertising. As well as the open-mindedness for advertising and branded goods, many Internet users have another characteristic that makes them valuable for advertisers as opinion formers and multipliers: Almost every third Internet user (32.1 percent) from the age of 14 claims usually to take the lead in discussions which equates to million people. This means that these users frequently influence the opinions of their friends and acquaintances and make recommendations to them about buying or using products an effect that can be of long-term benefit to branded companies. About one-third of Internet users from the age of 14 take the lead in discussions. The overall high level of open-mindedness regarding advertising, together with the pronounced brand consciousness of Internet users, underlines the high branding potential of online campaigns. For example, more than half (56.8 percent) of Internet users are convinced that branded goods are generally of a higher quality and four out of ten (40.8 percent) voluntarily mention brands where purchasing security is concerned. 14 to 29-year olds are the group most likely to take the lead with 40.9 percent, followed by men with 34.2 percent. The 30 to 49-year olds, with 31.7 percent, are slightly below the level of Internet users overall, while women and the over-50s are somewhat more reserved in discussions, with 29.7 and 25.1 percent respectively. Open-mindedness regarding advertising Advertising has more frequently drawn my attention to interesting products or new ideas. Discussion leadership I usually take the lead in discussions. Widest group of Internet users (WNK) 44.1 % Widest group of Internet users (WNK) 32.1 % Men 42.6 % Men 34.2 % Women 45.9 % Women 29.7 % Aged 14 to % Aged 14 to % Aged 30 to % Aged 30 to % Aged 50 and over 37.3 % Aged 50 and over 25.1 % % % Example: 44.1% 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: 101,343 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: 32.1% of all Internet users from the age of 14 (WNK) are usually the leaders in discussions. Based on: 101,343 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 TRENDSETTERS 24 OVK CREATION STUDY ALMOST 12 MILLION INTERNET USERS THE POWER OF CREATION Roughly a quarter of Internet users from the age of 14 are what are called first movers when it comes to using new technology. LIKE TRYING OUT NEW TECHNOLOGY Another characteristic of Internet users from the age of 14 is their interest in new things with 22.8 percent, almost a quarter of them are known amongst their acquaintances as being the first to try out new technology. This means that million can be regarded as first movers when it comes to using new technological developments. This applies particularly to the 14 to 29-year olds and to men, who with 30.6 and 29.4 percent respectively are well above the general level for Internet users. The 30 to 49-year olds and the 50- year olds, with 20.2 and 19.4 percent respectively, are slightly below the level of all Internet users, while women with 15.1 percent turn out to be clearly below average as technical trailblazers. The low level of anxiety regarding new technologies on the part of many Internet users makes them particularly open-minded to new products or unusual development a factor that advertisers in completely disparate industries can turn to their advantage in their online communication. How must online advertising be created to have the optimum effect? The OVK study The Power of Creation of the Circle of Online Marketers (OVK) addresses this central problem. This is currently the largest and most comprehensive study to examine the awareness and impact of online display creations in the German market. The study shows the objective and numerical significance of creation of standard advertising material in the online field, and within the examined attributes provides a design corridor to effectively boost the potential of online marketing activities. Creation here is defined as that aspect of an advertising medium that relates to the degree of freedom with respect to design and content that can be utilised regardless of technical or legal restrictions. In other words it deals with the design flexibility that exists regardless of the product, price and media plan. In concrete terms it comprises the layout, placement, size, colour and use of individual elements, as well as the length and prevailing mood applied to an advertising medium. The OVK study The Power of Creation underlines the importance of creation for successful advertising and is currently the largest German study to examine awareness and the impact of creation in the online area. Open-minded to new technologies I am often one of the first in my circle of acquaintances to try out new technologies. Widest group of Internet users (WNK) 22.8 % Men 29.4 % Women 15.5 % Aged 14 to % The study is divided into two parts methodologically: The first part consists of the results of a live study with 100 Internet users between 25 and 45 years old to measure the awareness components of four different standard display advertisements on nine premium websites by means of eye tracking. Eye contact with the advertising medium and its duration were recorded. This part of the study focussed on 1,850 live advertising contacts with 365 creations from 334 brands. Aged 30 to 49 Aged 50 and over 20.2 % 19.4 % % The data from the second part of the study came from a benchmark analysis of over 270 studies and 40,000 interviewees on the advertising impact of standard display advertising media as regards rating, creativity, memory, image, incentive to buy, message and attraction. Example: 22.8% of all Internet users from the age of 14 (WNK) are often the first among their acquaintances to try out new technologies. / Based on: 101,343 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 OVK CREATION STUDY THE QUALITY OF THE CREATION IS OFTEN CRITICAL FOR ITS SUCCESS CREATION QUALITY HAS A POSITIVE IMPACT ON CENTRAL ADVERTISING IMPACT INDICATORS 47.3 percent of the awareness of digital campaigns is due to the creation factor. The central results of the study for the first time provide concrete figures showing the immense importance of creation for the success of online advertising. The study analysed the role of creation in standard advertising media with respect to two central elements of awareness eye contact and length of viewing. In order to analyse the effect of attentiveness without the risk of confounding variables, formal conditions such as the form of advertising (standard display advertising medium) and environment (premium websites) were kept constant and statistically controlled. Just under half (47.3 percent) of the likelihood of digital campaigns being perceived in premium advertising environments is due to the creation factor. Individual characteristics of the viewer play a subordinate role with only 10.7 percent. This means that the design of the advertising medium plays a critical part in determining whether eye contact is made with the advertising medium or not. The length of time for which a standard display advertising medium is viewed is also almost one-third (30.1 percent) determined by the creation factor. The result of the study show that a high-quality creation can increase the duration of the user s eye contact by a factor of up to six (5.8 times). This extended viewing time is critical for awareness of online display format advertisements and therefore for campaign success, as the consumer spends significantly longer on the advertising medium and therefore absorbs the message for longer. As well as the quality of the creation of an advertising medium, individual personal characteristics of the viewer are also important during the viewing time, as the figure of 32.8 percent shows. A well-made creation not only holds the user s attention on it for longer, but also has positive effects on the central advertising impact indicators. Overall, an increase in the total impact of 62 percent was found, which is reflected above all in the impact dimensions of rating (+54 percent), image (+56 percent) and incentive to buy (+93 percent). The length of time a standard display advertising medium is viewed is 30-per cent dependent on the quality of the creation and can be increased up to sixfold by the use of a high-quality approach, and a consumer s inclination to buy can be doubled by a highquality creation. Whether an advertising medium will be viewed at all depends very much on its creation. Share of explanations in % How long an advertising medium was viewed was one-third dependent on the creation itself. Share of explanations in % Creation 47.3 % Eye contact with the Creation 30.1 % Length of viewing of advertising medium the advertising medium (in %) (in ms) Person 10.7 % Person 32.8 % Basis for data: 1,850 advertising contacts, 365 creations, 9 domains, 4 formats; controlled for influence of format and environment Source: Circle of Online Marketers (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) e.v.: Power of Creation Study 2013 Basis for data: 1,850 advertising contacts, 365 creations, 9 domains, 4 formats; controlled for influence of format and environment Source: Circle of Online Marketers (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) e.v.: Power of Creation Study 2013

15 OVK CREATION STUDY SUCCESS FACTORS FOR WELL-MADE CREATIVITY IN DISPLAY ADVERTISING IS CREATIONS WORTH IT Clear tips for designing well-made creations can be drawn from these findings. They cannot provide a 100-percent set of instructions for a perfect online creation, however, as this always involves the new, the unique and the surprising. The second part of the study uses benchmark analysis to determine the most important creation elements for a positive overall impact of display advertising. The OVK study therefore provides important insights into the design corridor for a lasting creation optimisation in order to increase ad awareness and impact in online campaigns. One central aspect for a positive impact is a clear storyline that quickly and succinctly conveys the advertising message with highquality visuals. Other factors contributing to success are well-matched animation effects and a properly-explained product presentation with the right key visuals, including the use of surprise effects and actors. For example, drawn or animated figures increase the overall rating enormously. Showing friends leads to the best impact overall, while pictures of couples generate the strongest attraction and communicate the campaign message best. The overall rating of an advertisement increases as the number of brand elements increases, with the impact dimensions of impact, rating and attention most strongly associated with the number of brand elements used. However, this does not mean simply displaying the logo frequently, but rather integrating the various brand elements into the story of the creation by means of products and good slogans. However, stills used online in the same way as in print ads, the use of too many colours, long and elaborate rotations and a text information overload were all found to be counterproductive to the advertising impact. The use of teasers resulted in a poorer rating in most cases as well. Only the use of prizes had a positive effect at all levels. Deadlines also showed a positive effect sometimes in particular, they increased attentiveness due to the underlying psychological principle of scarcity. In order to make the greatest possible use of the potential impact of online advertising, greater emphasis must be placed in future on focusing on the creation quality of the advertising medium. Which attributes have the most influence? SUMMARY The results of the OVK study The Power of Creation show that Storyline Animation Product presentation Surprise Actors High quality General tone Number of brand elements Originality Key visuals Branding Teasers Colour Text/picture Relationship between actors Product placement Logo placement and logo size Length Product Visuals Claim Degree of elaboration Use of humour far too little attention is being paid at the moment to the design of the content and form of online advertising. The study shows unequivocally that creation is a key element for the success of online campaigns. However, it also shows that advertisers must focus far more on well-made digital creation in conjunction with other factors, such as the importance, form and environment of individual advertisements in order to achieve a high degree of attentiveness and impact with online advertising. Strength of influence on the performance of a creation Source: Circle of Online Marketers (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) e.v.: Power of Creation Study 2013

16 CIRCLE OF ONLINE MARKETERS (OVK) IN THE BVDW 31 CIRCLE OF ONLINE MARKETERS (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 profi le 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. One of the main jobs of the Market Figures Unit is the collection and evaluation of market fi gures. 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 and the AGOF. 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 specifi c 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 BVDW is the organisation that represents the interests of companies in the field of interactive marketing, digital content and interactive added value. The BVDW has interdisciplinary roots, and therefore has a comprehensive overview of the issues facing the digital industry. It has taken on the task of making the efficiency and the benefits of digital media transparent, thereby promoting their use in the economy as a whole, in society, and in government. BVDW is engaged in continuous dialogue with politicians, the media and other interest groups, and supports the dynamic development of the sector in a results-oriented, practical and effective way. The BVDW sees its role as being to bring together the skills of all its members, and combine them with the defined values and principles of the Association. 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 and 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 (UU) performance indicator contained therein, AGOF has established media studies enable the currency of consistent Internet reach as the basis for Internet media planning in the market by transferring the reach section and sub- of digital media based on market-oriented planning mitting it to the methodological authority of agma (Arbeitsgemeinschaft Media-Analyse e.v.). The study itself, of which the section conventional standards. 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 media offerings used by participants in the internet facts 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 STRUCTURE DATA RANGE OF ONLINE MEDIA PLANNING THANKS TO MULTI-METHOD APPROACH As well as its marketmedia studies and the TOP planning tool, AGOF provides the connect Web service for the automation and standardisation of online booking processes in conjunction with the OVK. The AGOF Academy is a logical extension of AGOF s marketoriented activities. The aim is to provide the knowledge associated with the use of TOP, AGOF s market media studies and online media planning to all market partners. AND ONLINE MARKETING SERVICES The connect Web service is an IT solution suitable for industries and media and intended to simplify communication and data transfer between marketers and agencies. Information required for booking online advertising can be interrogated, exchanged and integrated directly in the agency systems over a central interface. The interdisciplinary Web service is complemented by a database which keeps price lists, discount modalities, bookable advertising media and advertising slots ready. connect was designed and developed by AGOF and the Circle of Online Marketers (OVK) in the BVDW. Further information and a registration facility for marketers and agencies can be found at The AGOF Academy is a logical extension of AGOF s market-oriented activities. The aim is to provide the knowledge associated with the use of TOP, AGOF s market media studies and online media planning to all market partners. The continuous and further training programme was relaunched for 2014 and considerably expanded. The well-liked seminars on the use of the TOP evaluation and planning tool will now be offered at three different levels (basic, advanced, professional) with the emphasis on Digital media planning or Marketing digital media services, with immediate effect. Completely new further training courses on the advertising market, media management and marketing will be offered. Other highlights are the training courses available for the fi rst 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 fi gures of the online advertising media comparable and therefore provide a valid planning basis. All the performance indicators for the websites participating in the AGOF measurement and its subcategories, known as the advertising slots, are available and enable online advertising to be planning using comparable standards to conventional advertising. 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. This methodological model delivers taking into account methodological requirements and economic restrictions 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 data base 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 GROSS DEFINITION OF THE SEGMENTS PWC reports and Nielsen data as the data basis ADVERTISING SPENDING The advertising investment in digital display advertising will from 2014 be shown on an extrapolated PWC basis (as is the case for the MAC 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 report by the existing Nielsen data, as such 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 i.e. the data are not based on so-called crawler statistics, so 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 a provider recognition for mobile access 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 gross 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 2014/01 Place and date of publication Düsseldorf, April 2014 Publisher Bundesverband Digitale Wirtschaft (BVDW) e.v. Berliner Allee Düsseldorf Telefon: Telefax: Internet: Directors Christoph N. v. Dellingshausen Tanja Feller President Matthias Ehrlich Vice-Presidents Harald R. Fortmann, Achim Himmelreich, Ulrich Kramer, Burkhard Leimbrock Contact Online-Vermarkterkreis (OVK) im BVDW Katharina Brandt, Leiterin Digital Marketing Registration 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).

21 Published by In co-operation with Bundesverband Digitale Wirtschaft (BVDW) e.v. Berliner Allee Düsseldorf Tel Fax