3. Where is the
big picture
heading?
Global advertising spending growth
18
16
15.9 6.4% CAGR (2012-2016)
for global advertising
% CAGR (2012-2016)
14
11.2
12
10
8
6.6
5.3
6
5
3.8 3.4 3.4
4
2 1.6
0.4
0
Source: PwC’s Global Entertainment and Media Outlook 2012-2016
PwC Romania
5. Representing data from companies that sell
meaningful volumes of online advertising and
media space
The methodology supplied
by IAB asks only for
In USA and many revenues related to the cost
countries of Europe, the PwC does not audit any of the sold media
research is conducted of the information included space, so revenues exclude
independently by PwC on in this report and provides strategy, creation, productio
behalf of the IAB, on an no opinion or other form of n or other development
ongoing basis. assurance. related costs.
The historical data is Only aggregate results Reported figures are not
compiled directly from are published and individual adjusted to account for
information supplied to company information is other organisations that
PwC by the companies held in strict confidence have not participated in the
selling advertising on the with PwC. survey.
Internet.
PwC Romania
6. Romanian Online Advertising
Revenue Study
In 2008, PwC was asked by the IAB
Romania to assess the value of the local
online advertising market.
PwC Romania
7. Net revenues
IAB Romania asked to be
reported by the participants the
net advertising revenues as
amounts billed by the
publishers or by the sales
houses, according to their
invoices charged to their
clients.
All revenues have been reported
in lei and net of VAT.
Results released on
a half-yearly basis.
PwC Romania
12. Where is the
big picture
heading?
Wired & mobile Internet global advertising
CAGR
(2012-2016)
80,000
70,000
Wired - Search 13.8
60,000
50,000
US$ million
Wired -
Banner/Display 13.8
40,000
Wired - Classified 11.8
30,000
Mobile
20,000 36.5
10,000
Wired - Video
33.9
-
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: PwC’s Global Entertainment and Media Outlook 2012-2016
PwC Romania
13. H1-2011 Total Revenue by Type (Advertising Format)
Embedded formats 22.36
Interruptive formats 7.74
Content sponsorships 6.25
Display affiliate ad 2.19
Paid for listings 2.09
Solus email ad 1.20
Contextual ad 1.13
Pre/post roll video 0.93
0 5 10 15 20 25
Revenues (million lei)
PwC Romania
14. These 5 leading types = 87% of Total Revenue
Unclassified
4%
Other
9%
Paid for
listings
4%
Display
Embedded
affiliate ad
formats
5%
48%
Content
sponsorships
13%
Interruptive
formats
17%
PwC Romania
16. H1-2012 Total Revenue - Largest Revenue Industry
(with volumes over the threshold of 1 mil lei)
Telecoms 3.91
Motors 3.34
Finance 2.82
Food 2.14
Drink 2.01
Online retail 1.93
Entertainment & the media 1.73
Cosmetics & toiletries 1.54
Travel & transport 1.44
Pharmaceutical 1.22
Govt, social, political org 1.11
0 1 2 3 4
Revenues (million lei)
PwC Romania
18. Where is the
big picture
heading?
Gaining customer insight requires a shift of
mindset
Customer
ownership
Consumer dialogue
“Pull”
Privacy Creating an
“Push” environment in
which the
customer
believes they are
in control
PwC Romania
23. Based on cumulated volumes 2007-
2012, Embedded formats - strong leading
position, at significant distance from the next
two followers.
Interruptive formats are the only
advertising type in the first tier reporting an
increase (13%) in H1-12 compared to H2-11, to
its new record.
Content sponsorships report a slight
decrease (-0.5%) in H1-12 compared to H2-
11, to their 2nd largest volume.
PwC Romania
24. Where is the
big picture
heading?
The proportion of E&M CEOs who told us
talent constraints have caused them to
cancel or delay a key strategic
initiative in the past year:
35%
Source: PwC’s Global CEO Survey 2012
PwC Romania
26. Based on cumulated revenues 2007-2012,
Telecoms is the leader industry,
seconded at slight distance by Finance.
Motors comes next at some distance behind.
The second tier industries:
Food
Drink
Cosmetics & toiletries
Entertainment & the media
PwC Romania
27. Where is the
big picture
heading?
Millennials challenge: powered by technology
41% • would rather communicate electronically than face-
to-face or over the phone
59% • say their employer’s provision of state-of-the art
technology is important when considering a job
50% • routinely use their own technology at work
78% • say that access to their favourite technology at work
makes them work more efficient
40% • feel that their use of technology isn’t always
understood
And... • some feel held back by employers’ outdated and
rigid work styles
PwC Romania Source: PwC’s survey “Millennials at work: reshaping the workplace”
28. Where is the
big picture
heading?
Eight principles for recruiting and retaining
the best Millennial talent
1. Understand this generation. Use metrics and benchmarking to segment the workforce and to
understand how Millennial employees’ motivations differ.
2. Get the deal right. Explain clearly what you are offering a potential employee and also what you
expect in return. Think creatively about reward strategies.
3. Help Millennials grow. Understand their personal and professional goals, put them on special
rotational assignments to gain a variety of experiences, and challenge them to exercise creativity and
come up with new ways of streamlining processes.
4. Give honest feedback in real time. Millennials want to know much more regularly how they’re
doing.
5. Set them free. Millennials want flexibility: if you know what you want done and by when, why does
it matter where and how they complete the task? Give them flexible work schedules.
6. Encourage learning. Millennials want as much training as possible. Build and measure the
effectiveness of mentoring programs alongside other learning. Let them connect, collaborate, build
their networks — and, most of all, innovate.
7. Allow faster advancement. Historically, career advancement was built on seniority and time of
service. Millennials value results more than tenure and expect fast career advancement.
8. Expect Millennials to leave. Rates of churn among Millennials will be higher than among other
generations, and this should be built into your plans.
PwC Romania Source: PwC’s survey “Millennials at work: reshaping the workplace”
Over the several years we’ve now been putting together this snapshot, we’re really getting a sense of how the consumer landscape is building and shifting.By re-testing annually, we’re able to pick out the very subtle but important changes that illustrate how the mass experience of consumption is changing.You can see that consumers are feeling an increasing need to be connected all the time, with a focus on content and consumption, rather than pleasure in the device for its own sake.
So let’s start with the big picture. Where’s the industry heading at a global level?
The segments still dominated by traditional distribution (especially print) will see slower growth than the digital ones. Despite the negative short term economic outlook, we’re looking at 5.6% growth for global advertising in 2012, as one-off events such as the Olympics and political advertising in a number of markets drive spending.
Paid search and banner/display will still hold the lion’s share of the market in 2016.These two formats continue to dominate and grow rapidly, but mobile is the fastest growing internet advertising segment at 37% CAGR. The explosion in mobile will affect the entire Internet advertising market.
One of the biggest is consumer concerns over privacy.Overcoming these will require a shift of industry mindset away from ‘customer ownership’, towards facilitating a position where the customer is ‘in control’. This echoes the industry journey from: marketing via a ‘push’ strategy (watch what we want when we tell you to) through ‘pull’ (anytime, anywhere) to targeting an ongoing one-to-one dialogue with the customer. Giving consumers more control over their personal data will benefit companies, by encouraging consumers to volunteer even more information, and by providing better value for advertisers and higher rewards for media owners. The ultimate aim is a win-win model in which the medium, the advertiser and the consumer all collaborate and benefit. Ultimately, the only person who ‘owns’ the customer – and the customer’s data – is the customer him or herself.
Paid for listings is the leading format of the second tier,seconded at some distance by Display affiliate advertising.
The technology to deliver the digitally integrated enterprise exists today. But the main hurdle involves finding and leading the talent and the innovative culture needed to make it a reality.According to PwC’s Annual Global CEO Survey, E&M CEOs believe a lack of key skills is negatively impacting the industry’s growth and profitability. Some 35% of E&M CEOs (compared with 24% across all sectors) say talent constraints have caused them to cancel or delay a key strategic initiative in the past year! And what’s more, talent is changing…To find and retain the talent they need, the companies will have to meet the distinctive priorities and demands of the Millennial generation.
A PwC survey (2011) of Millennial employees worldwide shows they’re “loyalty”, with only 18% planning to stay in their current roles long-term. But they want more than money, regarding training and development and work/life balance as more important than financial rewards.Fundamentally, the millennial generation have grown up in is digital world and this has shaped the way they communicate.They have specific preconceptions about how technology should be used in the workplace. Millennials questioned in our study expect the same technologies that empower their personal lives to also drive communication and innovation in the workplace. Engaging and retain these workers will be critical to each business’s bottom line. This means providing workplace technology that includes social networking, instant messaging, video-on-demand, blogs and wikis. These social tools will enable this generation to connect, engage, and collaborate in ways that are natural to them, driving higher productivity across the enterprise.