1. business and industrial
2. advertising and marketing
3. advertising

IAB Ireland PwC
Online Adspend Study Full Year 2012
Suzanne McElligott
CEO, IAB Ireland
April 18th, 2013
In association with:

Agenda
1.
Introduction
2.
Study Methodology
3.
Market Background
4.
Online Adspend Results
5.
Mobile Adspend Results
6.
Looking ahead…
7.
Questions
1. Introduction

Census of all major Irish online media owners

Includes online and mobile

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.)
2. Study Methodology

Internationally, IAB has been working with PwC since 1997
to survey the value of online adspend in Europe and
North America.

In our study, 28 leading publishers participated,
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.
Survey participants
 AD2ONE Ireland, Adconion, Adforce, Brightroll, BSkyB, Buy
and Sell, CarsIreland.ie, communicorp, Crimtan, Digitize New
Media Ltd, Distilled Media, Donedeal.ie, eircom, Electric
Media Sales, Entertainment.ie, Facebook *, FCR Media
(Goldenpages), Flashpoint, Google *, Gradireland,
Homewise, i-Believe, Independent Digital, Irishracing.com,
Linkedin, Media Brokers, Microsoft Advertising, MyHome.ie,
O2 Media, OnlineTradesmen.ie, Page7 Media, Pigsback,
Rollercoaster.ie, RTÉ *, saongroup.com, Specific Media, TCH,
The Irish Times, Ticketmaster Ireland, TradeDoubler Ireland
Ltd, Trader Media Group, TV3, Twitter *, Yahoo!
* Estimates
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

Estimates have been included for Google and Facebook
based on consultation with industry representatives.

IAB’s advisory council is comprised of Aegis Media, Core
Media and Group M.
Digital Adspend
•
Traditional online advertising viewed on a desktop PC or laptop, accessed via the Internet
connection
•
Only media spend reported to ensure fair comparison to other media including
Online
Mobile /
Tablet
–
Display advertising
–
Search
–
Classified
•
Advertising that has been specifically tailored and served on a mobile device including tablet,
accessed via 3G or wifi
•
Only media spend reported to ensure fair comparison to other media including
–
Display advertising (including SMS/MMS)
–
Search
3. Market Background
Annual Growth Rates
GDP
GNP
% Change
2009
2010
2011
2012
GDP
-5.5% -0.8% 1.4%
0.9%
GNP
-8.1%
3.4%
4.0
3.0
0.9% -2.55
2.0
1.0
Exports performed positively in 2012
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
Second successive year of growth of
GDP following 3 years of decline.
Distribution, Transport, Software and
Communications sectors were the
main contributor to growth in 2012
-6.0
-7.0
-8.0
-9.0
2008
2009
2010
Annual Growth Rate Graph 2007 – 2012
( issued Thurs 21.03.13)
2011
2012
Domestic Demand remains very weak –
personal consumption down 0.9%
CSO Quarterly National Accounts
Quarter 4 2012 and Year 2012
(Preliminary)
Consumer Confidence

Nielsen Irish consumer confidence indexed at 65 in Q4 2012, a two-point
decline from Q3 2012, however an increase of five points from Q4 2011
(Nielsen) *

This is an improvement relative to a year ago, however consumer
spending power remains under pressure.

Outlook on Job prospects and personal finances in Ireland is behind global
average - The latest Q4 2012 survey revealed there is still a recessionary
mind-set (95 percent).
‘Caution is expected in the first quarter of 2013. However if things
improve, consumer confidence could rebound later on in the year. There
are signs 2013 could be a turning point for the irish domestic economy,
and on the back of that we may see some strong consumer spending
resume.‘ Karen Mooney, Nielsen
* Source: Nielsen Global Consumer Confidence Survey Q4 2012 – Ireland Results
Nielsen 2012 Adspend in Other
Media
% change other media adspend yoy - Nielsen
Grand Total
Press
TV
-6.2
€794m
-6.5
€355m
-6.8
€273m
Radio
Outdoor
-4.4
€82.5m
-5.2
Cinema
Source: Nielsen All Media Spend Full year 2012
€77m
0.9
€5.9m
Business Performance 2012 vs
2010 and 2011
60
50
55% of senior marketers
40
say their business has
improved in 2012
Dec-10
30
Dec-11
Dec-12
20
A further
10
31% said it remained
the same as in 2011
0
Business Improved
Source: Alternatives Marketing Watch Survey December 2012
What’s driving online Adspend?
Marketing Strategies 2013
80% of medium / large businesses say they are
increasing spend on Digital
Where Marketing Spend was
increased
% respondents increasing spend
Digital
80%
DM / Email Marketing
39%
CRM
38%
PR
33%
Research
31%
Source: Alternatives Marketing Watch Survey December 2012
What’s driving Online Adspend?
Audience
2.6m total unique visitors in Ireland.
Growth of 10% over past year. (comScore)
Ireland is joint third fastest growing Market in Europe (after Italy, Russia and joint with Portugal)
Smartphone penetration in Ireland:
19.5 average
hours spent online per
person
per week in
Total adult Ireland population
of 3.7 million
Ireland (comScore)
61% access the Internet every day on
their smartphone
43%
(2012 Our Mobile Planet Smartphone Research)
Device Share of Page Views Across
Europe
Ireland, UK and Russia skewing above average for Internet access via Mobile and Tablet
Source: comscore Europe Digital Future In focus 2013
What’s driving online adspend?
Technology and Innovation

Broadband penetration in Ireland is stable at 65% EU
27: 72% (comreg key data report q4 2012)

Enthusiasm for all things Digital



44% of adults say Internet has made family life
better (UPC Report)
50% of householders expect to own a tablet / iPad
(UPC Report)
More choice for Brands / Innovation



Richer Ad Formats – home page takeovers,
carousel, billboard, slider
Video on Demand
Mobile Opportunities
4. IAB Ireland Online Adspend Full
Year 2012
Gross Online Adspend
(like for like growth excluding Mobile)
Online Revenue: 2011 vs 2012
150
145
140
12.3%
Increase
135
130
On a like for like basis
(Excluding Mobile)
125
120
Full year like for like adspend
2011
2012
€ million
Online Adspend 2009-2012
(like for like, excluding mobile)
+ 13.5% yoy
2009 to 2010
150
+ 19.6% yoy
2010 to 2011
+ 12.3% yoy
2011 to 2012
100
H1
Full year
2009
€48m
€97.2m
2010
€53.9m
€110m
2011
€64.9m
€132m
2012
€73.2m
€148m
50
Full Year
0
2009
2010
Sources: IAB PwC Adspend Studies 2009-2012
H1
2011
2012
H1
Full Year
Digital Media Mix Full Year 2012
1%, (€2m)
20%
(€28.9m)
45%
(€66.6m)
34%
(€50.6m)
Breakdown by advertising
format based on figures
provided - based on
98.7% of the overall total.
Search
45%
Display
34%
Classified
20%
Other (not allocated) 1%
€ million
Digital Media Mix Full Year 2011
4%
(€4.7m)
19%
(€25.6m)
41%
(€53.9m)
36%
(€47.8m)
Breakdown by
advertising format
based on figures
provided – based on
93% of overall total.
€ million
Search
41%
Display
36%
Classified
19%
Not Allocated
4%
Social Media Display Advertising in
2012
€ 6.3m*
9% Increase
from €5.8m* in 2011
*Based on figures submitted for Boards.ie, Linkedin
Facebook, Twitter, Youtube and Industry estimates.
Prepared in consultation with industry representatives.
Display Breakdown 2012
2% 2%
4%
Embedded formats
72%
Pre/Post roll video
10%
10%
10%
72%
Breakdown by
advertising format
based on figures
provided - 100% of
display.
€ million
Sponsorships and
tenancy
Display affiliate
advertising
Interruptive formats
10%
Email advertising
2%
4%
2%
Display Breakdown 2011
2%
1% 2%
10%
9%
76%
Embedded formats
76%
Pre/Post roll video
9%
Sponsorships and
tenancy
10%
Display affiliate
advertising
Interruptive
formats
Breakdown by
advertising format
based on figures
provided - 100% of
display.
Email advertising
€ million
2%
1%
2%
Industry Categories - Display
 Top Performers in Display 2012
 FMCG (15%)
 Finance (12%)
 Telecomms (11%)
 Automobile(10%)
 Retail (9%)
Industry Categories - Display
 Top Performers in Display 2011
 Telecomms (15%)
 FMCG (11%)
 Entertainment & Media (11%)
 Finance (10%)
 Auto (10%)
 Retail (10%)
Industry Breakdown for Display 2012
2% 2%
2.5%
3% 3%
15%
3%
4%
4%
12%
6%
7%
11%
9%
Breakdown by
advertising format
based on figures
provided – 76% of
display.
9%
10%
FMCG
15%
Finance
12%
Telecomms
11%
Automobile
10%
Retail
9%
Entertainment & Media
9%
Travel
7%
Alcohol
6%
Other
4%
Government/Public Service
4%
Technology
3%
Utilities
3%
Gambling
2.5%
Education and Training
2%
Recruitment/Property
2%
Industry Breakdown for Display 2011
2% 2%
3%
3%
3%
12%
4%
11%
6%
7%
11%
7%
10%
10%
Breakdown by
advertising format
based on figures
provided – 81% of
display.
10%
Telco.
12%
FMCG
11%
Entertainment and Media
11%
Finance
10%
Auto.
10%
Retail
10%
Other
7%
Travel
7%
Alcohol
6%
Gov/Public Sector
4%
Recruitment
3%
Technology
3%
Utilities
3%
Education and Training
2%
Gambling
2%
Industry Categories – Classified 2012
 Top Performers in Classified 2012
 Automobile (36%)
 Recruitment and Property (34%)
Industry Categories – Classified 2011
 Top Performers in Classified 2011
 Recruitment and Property (35%)
 Automobile (29%)
5. IAB Ireland Mobile Adspend Full
Year 2012
Gross Mobile Adspend
Mobile Adspend by type 2012
18%
€1.8m
82%
€8.1m
Display/SMS/MMS
82%
Search
18%
Industry Categories Mobile
Display / SMS / MMS Adspend
 Top Performers in Mobile Display / SMS /
MMS 2012
 FMCG (28%)
 Retail (20%)
 Alcohol (16%)
 Travel (12%)
 Entertainment & Media (11%)
Mobile Adspend by Industry
Category 2012
Mobile Display / SMS / MMS
1%
2%
3%
1%
0.5% 0.4% 0.3%
1%
0.2%
4%
28%
11%
12%
20%
16%
FMCG
28%
Retail
20%
Alcohol
16%
Travel
12%
Entertainment & Media
11%
Automobile
4%
Other
3%
Finance
2%
Telecomms
1%
Education & Training
1%
Recruitment/Property
1%
Gambling
0.5%
Government/Public Service
0.4%
Technology
0.3%
Utilities
0.2%
IAB PwC Online Adspend 2012
Gross Online Adspend
including Mobile
Adspend for 2012:
6. Looking Ahead
Sector growth potential over next 6 months
3%
16%
54%
predict growth
or strong growth
Strong growth
Growth
51%
30%
Stable
Decline
Strong Decline
Drivers of growth in adspend
Q. What do you see as being the most important in driving your company's revenue
growth?
 Mobile
 Richer Ad formats
 Video
 Real time bidding
Barriers to growth
Respondents’ view of the most
significant barriers to growth
 Economic Climate
 Digital strategy not prioritised in
companies
 Need for further training/knowledge
 Insufficient data in the Irish market
 Cost to the advertiser
Next Study
Next IAB PwC Study H1 2013
November 2013
Questions?
Many thanks to:
 All of our Adspend participants
 Nuala Nic Ghearailt, PwC
For More go to www.iabireland.ie or email
[email protected]