IAB Europe AdEx Benchmark 2013 study shows a meta-analysis of online ad spend in Europe with submissions of over 20 European countries.

1. IAB Europe AdEx Benchmark 2013
July 2014

2. 2
ABOUT THE STUDY

3. 3
A meta-analysis of online ad spend in Europe
RATECARD
Campaigns x
Ratecard
GROSS
Revenue Billed
NET
Revenue Billed
No Agency commissions

4. 4
Submissions from 26 European countries
• Austria
• Belgium
• Bulgaria
• Czech Republic
• Croatia
• Denmark
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Netherlands
• Norway
• Poland
• Russia
• Romania
• Serbia
• Slovakia
• Slovenia
• Spain
• Sweden
• Switzerland
• Turkey
• UK

5. 5
BIG PICTURE & CONTEXT

6. 6
The value of online advertising in 2013
€27.3bn

7. 7
Eurozone economy is coming out of a double-dip recession
-8
-6
-4
-2
0
2
4
6
2004Q1
2004Q2
2004Q3
2004Q4
2005Q1
2005Q2
2005Q3
2005Q4
2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
2007Q4
2008Q1
2008Q2
2008Q3
2008Q4
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
GDP Growth in Europe (%)
Eurozone GDP Growth France GDP Growth Italy GDP Growth Germany GDP Growth

8. 8
In a volatile market, online advertising is up double-digit
€ 24.4
€ 27.3
0
5
10
15
20
25
30
35
2012 2013
Total online advertising (€bn)
11.9% like-for-like

9. 9
Online ad spend in Europe increased 4-fold since 2006
€ 6.6
€ 9.2
€ 14.5
€ 15.8
€ 18.8
€ 21.9
€ 24.4
€ 27.3
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012 2013
Total online advertising spend in Europe (€bn)*
* Source: IAB Europe for 2011-2013; 2006-2011 retropolated based on IHS growth rates

10. 10
Online lifted overall ad spend as other media succumbed to economy and
structural challenges
-7.8%
-2.5%
-6.7%
10.8%
21.2%
11.5%
-2.5%
1.8%
-1.7%
-10%
-5%
0%
5%
10%
15%
20%
25%
WE CEE Total Europe
2013: advertising year-on-year growth
Total excl. online Online Total

11. 11
Due to weak 2013 for all other media, online strengthened its position as it
approaches TV
0.7
5.2
7.6
9.1
20.0
27.3
32.3
0 5 10 15 20 25 30 35
Cinema
Radio
OOH
Magazines
Newspapers
Online
TV
Ad spend by category in Europe in 2013 (€bn)

12. 12
Over half of all European ad spend comes from three markets
57.3%
69.4%
77.9%
86.6%
56.9%
69.9%
78.2%
86.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Top 3 Top 5 Top 7 Top 10
Share of European online revenue by market
2012 2013

13. 13
After a tough year, Sweden increases in rank, helped by economic crisis in Spain
6,383
4,253
3,343
1,454
1,503
1,199
859
911
618
589
7,381
4,676
3,494
1,843
1,703
1,312
955
901
709
628
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
UK Germany France Russia Italy Netherlands Sweden Spain Norway Denmark
Total online ad spend (€m)
2012 2013

14. 14
Growth drivers
Social media
Video
Rich media
Mobile internet penetration increasing across all of Europe
Programmatic and RTB come into the mainstream
E-commerce driving C&D growth

15. 15
Growth hurdles
Attracting brand spend online
Measurement
Mobile
Video inventory – still very limited
TV dominance in some European markets
Data literacy
Regulation

16. 16
Mix of CEE and WE markets above European average; Russia and Turkey only 2
markets above 20%
26.8%
24.3%
17.3%
16.2%
16.0%
15.7%
14.7%
13.4%
13.3%
13.0%
12.9%
11.9%
11.4%
11.1%
10.9%
10.7%
10.0%
9.8%
9.4%
6.9%
6.6%
6.2%
4.5%
4.3%
3.0%
-1.1%
-2.0%
-5%
0%
5%
10%
15%
20%
25%
30%
Online ad growth like-for-like (yoy)

17. 17
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Romania
Russia
Serbia
Slovenia
Spain
Austria
Belgium
Sweden
Switzerland
Turkey
UK
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 20 40 60 80 100 120
Slovakia
Onlineadmarketgrowth
Online ad spend per capita (€)
Bubble size: market value in €m

18. 18
Uniform growth patterns in 2013
-20%
-10%
0%
10%
20%
30%
40%
50%
0 5 10 15 20 25 30
Online advertising growth year-on-year (%)
2012 2013

19. 19
FORMATS

20. 20
Acceleration in Display growth, Display and Search drove online ad spend in 2013
9.1%
6.3%
15.5%
11.5%
14.9%
3.6%
13.0%
11.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Display Classifieds & Directories Paid-for-search Total
Year-on-year growth (%)
2012 2013

21. 21
Search and Display grow their share at the expense of Classifieds & Directories
47.5% 48.2%
43.8%
32.2% 31.0% 32.7% 32.4% 33.8%
18.3% 14.9%
18.9%
19.8% 20.7% 19.6% 18.5% 16.8%
34.1% 36.6% 36.6%
47.3% 48.0% 47.1% 48.8% 49.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013
Format shares of total online
Display Classifieds & Directories Paid-for-search Other

22. 22
A renaissance of Display advertising as even mature markets post high growth
32.3%
28.3%
28.0%
25.9%
24.9%
24.7%
18.7%
15.9%
14.9%
13.4%
13.4%
12.4%
12.3%
11.4%
9.3%
9.3%
8.7%
8.1%
5.2%
4.9%
4.8%
2.7%
-0.2%
-0.7%
-2.0%
-3.1%
-5.4%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Display advertising growth year-on-year (%)

23. 23
Online video is now a significant part of Display advertising
29.0%
20.5%
20.5%
19.1%
16.2%
16.2%
15.3%
15.2%
15.0%
14.4%
13.5%
13.1%
12.7%
11.7%
11.0%
10.3%
8.8%
8.1%
5.4%
4.5%
2.9%
2.9%
2.2%
0%
5%
10%
15%
20%
25%
30%
35%
Video share of Display

24. 24
Video ad spend mirrors total online ad spend ranking
356.6
153.0
139.0
132.3
85.6
80.7
43.9
34.8
29.4
28.2
25.1
16.8
12.7
10.9
9.6
9.1
8.8
4.0
3.3
1.7
0.8
0
50
100
150
200
250
300
350
400
Online video ad spend (€m)

25. 25
Mobile now has a double-digit share of online display
25.1%
16.4%
13.5%
11.5%
9.5%
9.2%
9.2%
9.0%
8.7%
6.7%
5.4%
5.0%
4.9%
4.6%
3.4%
3.1%
2.8%
2.2%
2.1%
1.4%
1.2%
0.7%
0%
5%
10%
15%
20%
25%
30%
Mobile display as a share of total Display
2012 2013

26. 26
This is more evident…
32.3%
28.3%
25.9%
24.7%
18.7%
15.9%
13.4%
13.4%
12.4%
11.4%
9.3%
9.3%
5.2%
4.8%
2.7%
-0.2%
-2.0%
-3.1%
-5.4%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Display year-on-year growth (%)
Display including mobile

27. 27
…when we remove Mobile from Display
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Display year-on-year growth (%)
Display including mobile Display without mobile

28. 28
Mobile is most important growth engine for online display
European
Display with
mobile: +14.9%
European
Display without
mobile: +1.1%

29. 29
Classifieds & Directories struggled in 2013 with 11 countries experiencing decline
30.3%
26.1%
24.8%
20.0%
11.5%
9.4%
8.4%
6.8%
5.6%
4.9%
4.3%
3.6%
3.6%
3.3%
2.0%
-0.2%
-0.6%
-1.7%
-1.7%
-2.0%
-2.1%
-3.4%
-7.3%
-16.2%
-18.7%
-20.5%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Classifieds & Directories year-on-year growth (%)

30. 30
Continued growth in Paid-for-search shows the success of the format
34.4%
26.6%
26.1%
22.3%
20.9%
20.8%
19.0%
18.9%
18.5%
18.2%
15.0%
14.3%
13.6%
13.5%
13.0%
12.0%
9.7%
6.0%
6.0%
5.5%
5.2%
4.7%
3.7%
3.7%
1.1%
-2.0%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Paid-for-search year-on-year growth (%)

31. 31
Like in Display, Mobile is now a significant driver of Paid-for-search
25.3%
20.0%
16.8%
12.6% 12.4%
9.8%
9.0%
4.5%
2.4%
0%
5%
10%
15%
20%
25%
30%
Ireland Austria UK Europe Sweden Germany France Hungary Spain
Mobile search as a share of Paid-for-search (%)

32. Contact:
Alison Fennah, IAB Europe – fennah@iabeurope.eu
Daniel Knapp, IHS – daniel.knapp@ihs.com
To request the full report please contact
adex@iabeurope.eu