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 IAB Ireland PwC Online Adspend Study H1 2013 Suzanne McElligott CEO, IAB Ireland Nov 13th, 2013 In association with:

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Presentation on theme: " IAB Ireland PwC Online Adspend Study H1 2013 Suzanne McElligott CEO, IAB Ireland Nov 13th, 2013 In association with:"— Presentation transcript:

1  IAB Ireland PwC Online Adspend Study H Suzanne McElligott CEO, IAB Ireland Nov 13th, 2013 In association with:

2 Agenda 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Looking ahead… 7. Questions

3 1. Introduction  Census 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.)

4 2. Study Methodology  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 for 29 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 verified or audited by PwC.

5 Publishers & Ad Networks / Sales House  AD2ONE, Adconion, Adforce, Brightroll, BSkyB, Buy and Sell, CarsIreland.ie, communicorp, Crimtan, Digitize New Media Ltd, Distilled Media, DoneDeal, eircom, Electric Media Sales, Empathy Marketing, Entertainment.ie, Facebook*, FCR Media (Goldenpages), Flashpoint, Google*, Gradireland, Homewise, i-Believe, Independent Digital, Irishracing.com, Landmark Media, Linkedin, Media Brokers, Microsoft Advertising, MyHome.ie, O2 Media, OnlineTradesmen.ie, Page7 Media, Rollercoaster.ie, RTÉ**, saongroup, Sheology, Specific Media, The Irish Times, Ticketmaster Ireland, TradeDoubler Ireland Ltd, Trader Media Group, TV3, Twitter*, Yahoo! *Based on data from leading agencies and Industry Reps ** RTÉ Annual Report 2012

6 Study Content  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 and Group M.

7 Digital Adspend Traditional online advertising viewed on a desktop PC or laptop, accessed via the Internet connection –Display advertising –Search –Classified Desktop Advertising that has been specifically tailored and served on a mobile device including tablet, accessed via 3G or wifi –Display advertising (including rich / non-rich formats, SMS, Social Media, in-app advertising etc) –Search Mobile / Tablet

8 3. Market Background  Officially out of Recession!  0.4% GDP Growth 2013 – ESRI predicting growth in both GNP and GDP of approx 2.7% in 2014  Employment growth – ESRI predict 2% growth for year overall (3 consecutive quarters where employment grew)  Out of bailout by end of this year

9 Consumer Sentiment  Irish Consumer Sentiment at highest in six years – on upward trend since April 2013  The Consumer Sentiment Index rose to 76.2 in October, its highest since June  This is an improvement relative to a year ago, however consumer spending power remains under pressure. Sources: KBC / ESRI Consumer Sentiment Index October 2013 and Nielsen Global Online Survey Q  Nielsen Consumer Confidence report backs up this upward trend Nielsen Q16564 Q27064 Remains to be seen how this will affect actual spending

10 Nielsen H Adspend in Other Media Source: Nielsen All Media Spend H % change other media adspend yoy H v H Nielsen Cinema €3m +2.7% Radio €38m -11.5% Outdoor €42m % TV €132.6m +4.9% Press €165.7m -4.3% Grand Total €381.8m -0.4%

11 Which form of advertising is driving growth year on year - Global  Global Advertising expenditure - percentage change year-on-year – YTD  Source: Nielsen Global AdView Pulse Q  Based on net figures estimated with Nielsen Global AdView weighting factors Nielsen Advertising Trends Report October 2013

12 Which form of advertising is driving growth year on year - Ireland  Ireland - Traditional Advertising expenditure - percentage change year-on-year – YTD Source: Nielsen AdDynamix YTD to June 13 – Ireland *Note Magazines have extra coverage in 2013 on 2012 which accounts for high growth figure ** IAB Online FY 2012 Figures NEWSPAPERS -7.2% TV +4.6% OUTDOOR +12.1% RADIO -11.5% CINEMA +2.7% MAGAZINES +43%* ONLINE +12.3%** Total Press -4.3%

13 Online is driving growth in market versus traditional in Ireland  AAI/Nielsen Advertising Barometer Sept 2013 Source: Nielsen, Core Media & IAB % overall -24% Traditional +120% Online Online growth from 6% share to approx 16% share of advertising expenditure

14 What’s driving Online Adspend Audience 98% of households with children have some form of device for online access. This figure is 76% for households with no children. (eircom eHSS Report April 2013) 87% multi-task on other media whilst on their smartphone (Our Mobile Planet 2013) On average, adults have access to 4 potential online devices at home (eircom eHSS Report April 2013)

15 What’s driving Online Adspend Always On Culture Smartphone penetration in Ireland = 57% 67% access the Internet every day on their smartphone Smartphones have transformed Consumer Behaviour 48% are spending more time online with Smartphone in last six months Smartphone users are frequent Social Networkers – 86% visit SN sites on smartphones, 60% at least once a day (2013 Our Mobile Planet Smartphone Research) 83% researched a product / service on smartphone

16 What’s driving online adspend - Technology and Innovation  More choice for Brands / Publishers  Richer Ad Formats – home page takeovers, carousel, billboard, slider  Video on Demand  Mobile Opportunities  Creative tools making creativity online easier  Programmatic Buying

17 4. IAB Ireland Online Adspend H Gross Online Adspend (Desktop & Mobile) Excluding Mobile = €77m

18 Digital Media Mix (Desktop & Mobile) H The breakdown represents 99.8% of the overall total.

19 Online Adspend Growth H to H – Desktop & Mobile Online Adspend Growth of 24% Including Mobile *Includes estimated Mobile adspend for H at 50% of full year 2012 (€9.9) = €4.9m Million €97m €78.1m*

20 Social Media Display Advertising in H (Desktop & Mobile) € 6.4m* * Based on actual spend figures submitted by SM sites, leading Ad Agencies and Industry Reps.

21 Online Desktop Adspend H (like for like, excluding mobile) Sources: IAB PwC Adspend Studies 2009-H H1Full year 2009€48m€97.2m 2010€53.9m€110m 2011€64.9m€132m 2012€73.2m€148m 2013€76.7m

22 Desktop Digital Media Mix H – Excluding Mobile Breakdown by advertising format based on figures provided - based on 100% of the overall total.

23 Desktop Digital Media Mix H – Excluding Mobile € million Breakdown by advertising format based on figures provided - based on 99% of the overall total.

24 Display Breakdown (Desktop) H € million Breakdown by advertising format based on figures provided - 100% of display. %’s are rounded. 52% 14% 10% 9% 8% 3% 1% 3%

25 Display Breakdown (Desktop) H € million Breakdown by advertising format based on figures provided - 100% of display. %’s are rounded. Note: Social Media was included in Embedded Formats H (€2.9m) 70% 11% 10% 5% 2%

26 Industry Categories – Desktop Display H  Top Performers in Display H  Finance (14%)  Retail (13%)  FMCG (13%)  Telecoms (11%)  Auto (9%)

27 Industry Categories –Desktop Display H  Top Performers in Display H  FMCG (16%)  Finance (11.6%)  Telecoms (10%)  Entertainment & Media (9.6%)

28 Industry Breakdown Desktop Display H % 13% 11% 9% 8% 7% 5% 3% 2% 1% 4% Breakdown represents 97% of total for Desktop Display

29 Industry Category Desktop Display H % 12% 10% 9% 8% 6% 4% 3% 2% 1% 6% Breakdown represents 82% of total for Desktop Display

30 Industry Categories – Desktop Classified H  Top Performers in Classified H  Automobile 36%  Recruitment and Property 35.4%  Other (including professional services and individuals selling items online) 13%

31 Industry Categories – Desktop Classified H  Top Performers in Classified H  Recruitment and Property 33.3%  Automobile 32.8%  Other (including professional services and individuals selling items online) 13%

32 5. IAB Ireland Mobile Adspend H Gross Mobile Adspend

33 Mobile Display Adspend by type H % 44% Note: Display % includes SMS spend and Social Media on Mobile Breakdown represents 99% of total for Mobile Display

34 Industry Categories Mobile Display Adspend H  Top Performers in Mobile Display H  FMCG (25%)  Travel (14%)  Retail (13%)  Entertainment & Media (8%)  Automobile (7%)  Utilities (7%)

35 Mobile Adspend by Industry Category H Mobile Display / SMS 25% 14% 13% 8% 7% 3% 1% 3.5% Breakdown represents 72% of total for mobile display.

36 6. Looking Ahead 63% predict growth or strong growth Looking ahead 6 months

37 % of website traffic from mobile devices 47% Of respondents say 41-50% of traffic is via mobile devices

38 Next Study Next IAB PwC Study – Full Year 2013 April 2014 Upcoming Event: IAB Mobile Connect 2013 – Wednesday 20 th November

39 Questions? Many thanks to:  All of our Adspend participants  Nuala Nic Ghearailt, PwC For More go to or


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