•Introduction and methodology •Top-line figures •Key trends

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Adex 2010
Internet advertising spending in
Europe (5th edition)
Key findings

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Adex 2010: key findings
Agenda
• Introduction and methodology
• Top-line figures
• Key trends
Speakers
• Catherine Borrel, IAB Europe
• Vincent Létang & Daniel Knapp, IHS Screen Digest

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Methodology

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Comparing “apples to apples”
NET RATECARD
GROSS
Revenue Billed Campaigns x
Revenue Billed No Agency commissions Ratecard

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Key challenges to ensure comparability
• Fair Gross value
• Category representation
• Display
• Search
• Classifieds & Directories
• Other
• Exchange rate adjustments at a constant rate
• Introduction of mobile display and mobile search

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Our coverage now includes 25 countries
• Austria • Italy
• Belgium • Netherlands
• Bulgaria • Norway
• Czech Republic • Poland
• Croatia • Russia
• Denmark • Romania
• Finland • Slovenia
• France • Slovakia
• Germany • Spain
• Greece • Sweden
• Hungary • Switzerland
• Ireland • Turkey
• UK

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Topline Figures

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Overall growth: 15.3%
• At constant country sample (25 countries of 2009 and 2010)
• At constant exchange rate
Total online advertising (€bn)
20
18
16
14
12
10
2009 2010

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Key facts and figures
• A €17.7bn market
• Internet advertising back to double-digit growth
– Re-accelerating to +15.3% in 2010
– 2009: +4.5%, 2008: +20%
• Internet now contributes 18% to all-media adspend
• Online Display showing the strongest growth: + 21.3%

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Europe continues to chase the US
Total online advertising (€bn)
25
20
15
10
5
0
2009 2010
Europe US
Constant exchange rate: average 2010: 1 EUR = 1.3279 USD

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Display drivers
• New formats/platforms: video, social, mobile
• Innovation in targeting, audience measurement and banner
formats
• General renaissance of branding campaigns and display
media

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Key Trends
(segments, markets)

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Segments: display beats search growth in 2010…
25%
21,3%
20%
16,1%
15,3%
15%
10%
7,4%
5%
0%
Display Search Classifieds & Grand total
directories
-5%
2009 2010

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…but search remains the larger segment
9
€8,0bn
8
7
6 €5,8bn
5
€3,9bn
4
3
2
1
0
Display Search Classifieds & directories
2009 2010

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…however, display increased its share to 33%
Segment market shares (%)
100%
90% 21
23
80%
70%
60%
46 45
50%
40%
30%
20%
30 33
10%
0%
2009 2010
Display Search Classifieds/Directories Other

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Markets: The top 6 make 74% of total adspend
Total online adspend in €m
€ 6 000
€ 5 000 € 4 770
€ 4 000 € 3 630
€ 3 000
€ 2 000 € 1 883
€ 1 004 € 1 007
€ 1 000 € 687 € 814
€ 435 € 521 € 565
€0
Denmark Norway Sweden Russia Spain Italy Netherlands France Germany UK

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Comparing Markets (1): CEE is catching up
Total online advertising growth 2009 – 2010 (%)
40%
35%
30%
25%
20%
15%
10%
5%
0%

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Comparing Markets (2): Display surges in East & West
Online display advertising growth 2009 – 2010 (%)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

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Mobile display enters the mainstream
Mobile display adspend in proportion of total display (%)
12% 11,4%
10%
8%
6%
4% 3,5%
3,1% 2,8% 2,8%
2%
0,7%
0%
Finland Italy Spain Norway UK Hungary

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Market: Growth and maturity
45%
40%
Russia
Year-on-year growth 2009-2010
35%
30% Turkey
Romania
Slovenia
Switzerland
25% Greece Bulgaria Czech Republic
Spain
Italy Germany
20% Norway
Austria Finland
Croatia Hungary Denmark
15%
Belgium Poland UK
Netherlands
Ireland
10% Slovakia Sweden
France
5%
0%
0% 5% 10% 15% 20% 25% 30% 35%
Online advertising market share
*Calculated using WARC & IHS Screen Digest data

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Panel discussion
• Vincent Létang, IHS Screen Digest
• Tim Elkington, IAB UK
• Andrey Sebrant, Yandex
• Björn Kaspring, OVK (IAB partner, Germany)

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Thank you
Questions?