1.  IAB Ireland PwC Online Adspend Study H1 2013 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 2007.  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 Q3 2013  Nielsen Consumer Confidence report backs up this upward trend Nielsen20132012 Q16564 Q27064 Remains to be seen how this will affect actual spending

10. Nielsen H1 2013 Adspend in Other Media Source: Nielsen All Media Spend H1 2013 % change other media adspend yoy H1 2013 v H1 2012 - Nielsen Cinema €3m +2.7% Radio €38m -11.5% Outdoor €42m + 12.1% 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 Q2 2013  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 2013 2007-2012 -15% 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 H1 2013 Gross Online Adspend (Desktop & Mobile) Excluding Mobile = €77m

18. Digital Media Mix (Desktop & Mobile) H1 2013 The breakdown represents 99.8% of the overall total.

19. Online Adspend Growth H1 2012 to H1 2013 – Desktop & Mobile Online Adspend Growth of 24% Including Mobile *Includes estimated Mobile adspend for H1 2012 at 50% of full year 2012 (€9.9) = €4.9m Million €97m €78.1m*

20. Social Media Display Advertising in H1 2013 (Desktop & Mobile) € 6.4m* * Based on actual spend figures submitted by SM sites, leading Ad Agencies and Industry Reps.

21. Online Desktop Adspend 2009 - H1 2013 (like for like, excluding mobile) Sources: IAB PwC Adspend Studies 2009-H1 2013 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 H1 2013 – Excluding Mobile Breakdown by advertising format based on figures provided - based on 100% of the overall total.

23. Desktop Digital Media Mix H1 2012 – Excluding Mobile € million Breakdown by advertising format based on figures provided - based on 99% of the overall total.

24. Display Breakdown (Desktop) H1 2013 € 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) H1 2012 € million Breakdown by advertising format based on figures provided - 100% of display. %’s are rounded. Note: Social Media was included in Embedded Formats H1 2012 (€2.9m) 70% 11% 10% 5% 2%

26. Industry Categories – Desktop Display H1 2013  Top Performers in Display H1 2013  Finance (14%)  Retail (13%)  FMCG (13%)  Telecoms (11%)  Auto (9%)

27. Industry Categories –Desktop Display H1 2012  Top Performers in Display H1 2012  FMCG (16%)  Finance (11.6%)  Telecoms (10%)  Entertainment & Media (9.6%)

28. Industry Breakdown Desktop Display H1 2013 14% 13% 11% 9% 8% 7% 5% 3% 2% 1% 4% Breakdown represents 97% of total for Desktop Display

29. Industry Category Desktop Display H1 2012 16% 12% 10% 9% 8% 6% 4% 3% 2% 1% 6% Breakdown represents 82% of total for Desktop Display

30. Industry Categories – Desktop Classified H1 2013  Top Performers in Classified H1 2013  Automobile 36%  Recruitment and Property 35.4%  Other (including professional services and individuals selling items online) 13%

31. Industry Categories – Desktop Classified H1 2012  Top Performers in Classified H1 2012  Recruitment and Property 33.3%  Automobile 32.8%  Other (including professional services and individuals selling items online) 13%

32. 5. IAB Ireland Mobile Adspend H1 2013 Gross Mobile Adspend

33. Mobile Display Adspend by type H1 2013 56% 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 H1 2013  Top Performers in Mobile Display H1 2013  FMCG (25%)  Travel (14%)  Retail (13%)  Entertainment & Media (8%)  Automobile (7%)  Utilities (7%)

35. Mobile Adspend by Industry Category H1 2013 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 www.iabireland.ie or email info@iabireland.iewww.iabireland.ie info@iabireland.ie