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2009 UK online adspend study

2009 UK online adspend study. Agenda. Introduction Study methodology Market background and trends UK online adspend – headline results The digital media mix Industry categories Summary Looking ahead… Questions. 1. Introduction. Background. Census of all major UK online media owners

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2009 UK online adspend study

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  1. 2009 UK online adspend study

  2. Agenda Introduction Study methodology Market background and trends UK online adspend – headline results The digital media mix Industry categories Summary Looking ahead… Questions

  3. 1. Introduction

  4. Background Census of all major UK online media owners Official Advertising Association figures since 1997 Information collected each halfyear Analysis available by Format Industry category

  5. 2. Methodology

  6. Reported vs estimated survey data Estimated data • Study includes estimation of data for other half year where data was submitted only for either H1 09 or H2 09, assuming 0% growth between both half years • Study includes estimation of Facebook revenues, based on views from Enders Analysis, GroupM, Isobar, IAB, PwC • Except for above, reported figures have not been adjusted for organisations that did not participate in survey Reported data • Survey includes revenues submitted by 83 participants • The figures are drawn up on the basis of site declaration and have not been not verified • Online recruitment sites reported by WARC • Google revenues included in total figures are based on published financials 98% of 2009 total recorded adspend 2% of 2009 total recorded adspend

  7. Adjustments and like-for-like growth reporting Adjustments • Figures are adjusted for double-counting, based on information provided by survey participants • YouTube revenues have been estimated based on the same expert views as Facebook. This is not incremental spend as already included in Google total revenues but it is display rather than search spend and we have shifted revenues accordingly from search into display • Total advertising revenue is reported on agrossbasis Like for like growth reporting • This study reports for the first time like-for-like growth figures not only for total spend but also main formats (display, search, classifieds) • Only companies which submitted in both 2008 and 2009 have been included in the YOY growth calculations • A total of 23 companies’ figures are not included in the like-for-like comparisons • In addition, the estimates for Facebook and YouTube have also been excluded

  8. 2009 research participants Absolute Radio, AcceleratorMedia, Adconion, AD2-One, Adify, Affiliate Window, AND, AOL, AOL Networks, Bauer, BBC Worldwide, Bloomberg, BMJ Publishing, BSkyB, BuyAssociation, Channel4, Chinwag, Commission Junction, CNet, Conde Nast, Dennis Interactive, DGM, DPG, Ecircle, Emap, eType, Fish4, Fox Networks, Friends Reunited, Financial Times, Future Publishing, Glam Media, Global Radio Interactive, Goallover, Gumtree, Guardian, Handbag (NatMag), Haymarket Business Solutions, Haymarket Motoring, Hachette, Hello, HiMedia, Independent News, IDS, The Institute of Engineering and Technology, IPC, Interactive Prospect Targeting, is4profit, ITV, iVillage, Jobsite, Last.fm, MySpace, Microsoft, Net Communities, News International, Online Media Group, Orange, Oridian, Propertyfinder, Reed Business Information, Real Media, Reuters, Rightmove, Specific Media, Skupe, Tesco, Telegraph, Tiscali, TradeDoubler, Trader Media, Trinity Mirror, UKTV, Unanimis, Upmystreet, Value Click, Viacom Brand Solutions, Virgin Media, WebTV Enterprise, Webgains, Wallpaper, Yell, Yahoo! …Plus further recruitment sites, courtesy of WARC Representing thousandsof UK websites

  9. 3. Market background & trends

  10. UK GDP dives to – 6% YOY in Q2 2009 GDP GrowthEconomy grows by 0.3% in Q4 2009

  11. IPA Marketers’ Bellwether Q4 2009 • Total budgets revised down for the 9th quarter in succession • But internet budgets were revised up for the 2nd quarter running

  12. Industry Forecasts for Online in 2009 Enders Analysis +2.2% (October 2009)

  13. Industry Forecasts for Online in 2009 Zenith Optimedia -2.1% (Oct 2009)

  14. Industry Forecasts for Online in 2009 GroupM +2.1% (Dec 2009)

  15. This time last year • 2008 was a strong year for online • Total spend grew from £2.8bn to 3.35bn • Online’sshare of media grew to 19.2% • However total revenues in Q4 were marginally down as the recession kicked in

  16. Active users up 3 million since January 2009 Jan 2010: Digital Universe 46.4m aged 2+ Active Universe 38.9m aged 2+ Source: UKOM APS Jan 10; Nielsen Netview Jan 09-Dec 09

  17. 92% on broadband (63% plus 2Mb) Source: UKOM APS Jan 10

  18. Netbook sales rocket

  19. Online shopping defies the recession 14% YOY growth in 2009

  20. 4. UK adspend headline results

  21. £3,541.08mmarket in 2009Anincreaseof£191.39m year-on-year Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  22. 2009 vs. 2008 4.2% increase on a like for like basis Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  23. Annual Online AdSpend Growth 2000 - 2009 £3,541.1 £3,349.8m £2,812.7m £2,015.8m £1,366.5m £825.1m £465.0m £165.7m £196.7m £153.1m

  24. 5. Online in ContextBreaking market trends in the UK ad industry

  25. % share of revenues for January to December 2009 Online’s market share for 2009 is 23% Total advertisingmarket £15,446.7 NOTE * Television includes sponsorship revenues for the first time IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  26. Online’s growth continues in downturn Year on year growth for 2009 Total advertising market growth = -11.2% Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories. * NOTE Television includes sponsorship revenues for the first time

  27. Online’s market share for 2009 is 23% Market Share Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC

  28. Online’s quarterly totals show growth Television * Press - Display Direct Mail Press - Classified Internet Outdoor Radio £ millions N.B. WARC Recruitment data included from 2003 NOTE * Television includes sponsorship revenues for the first time Source: PricewaterhouseCoopers / Internet Advertising Bureau / Advertising Association / Radio Advertising Bureau / WARC

  29. Full year adspend revenues across all media Full year 2009 £m Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau. NOTE * Television includes sponsorship for the first time Directories are estimated

  30. Online advertising is still showing growth in 2009 Internet advertising reaches £3.54bn In 2009 Online achieved a share of 23%, up 4 Points on 2008 (19%) The market grew on a like for like basis by 4.2% year on year Online and Television continue to dominate 2009 – full year summary

  31. 6. THE DIGITAL MEDIA MIX

  32. The digital media mix % share of revenues for the full year 2009 Full year total £3,541.1 Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC. Chart above does not include Solus email at 0.2% market share

  33. The digital media mix On a Like-for-Like basis Display and Classifieds decreased, while Search increased L for L +9.5% £ millions L for L -5.3% L for L -4.4% Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  34. The digital media mix Year on year comparison £ millions IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Reported Figures, not like for like comparison Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  35. H2 2009 search figures up year on year £m Source: Internet Advertising Bureau / PricewaterhouseCoopers

  36. Classified market is stabilising £m Reported Figures, not like for like comparison Source: Internet Advertising Bureau / PricewaterhouseCoopers

  37. The display digital media mix % share of display revenues for the full year 2009 Full year display total £709.30m Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  38. Display: Still dominated by banners, video shows exceptional growth Video £m Reported Figures, not like for like comparison Source: Internet Advertising Bureau / PricewaterhouseCoopers

  39. Video shows market beating growth £28.31m in 2009 Source: Internet Advertising Bureau / PricewaterhouseCoopers

  40. Display formats showing actual growth in 2009 +2% £ millions +44% +8% +8% +22% +18% Reported Figures, not like for like comparison Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  41. 7. INDUSTRY CATEGORIES

  42. H2 2009 Industry Sector display market shares Based on 63% of total display ad spend IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser and misc figures and covers 63% of online display revenues in H2 2009. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

  43. 8. LOOKING AHEAD

  44. Looking ahead Audience still growing (and buying more devices) Users on 2MB+ broadband rising Time online -especially on social sites - rising Digital share predicted to grow Improved audience measurement and video appealing to brand advertisers All point to higher growth in 2010

  45. 9. SUMMARY

  46. Summary Online ad spend grows to £3.54 billion in 2009 Up 4.2% on a Like for Like basis Display down 4.4% on a Like for Like basis - £709 million Classified down 5.3% on a Like for Like basis - £677 million Search up 9.5% on a Like for Like basis - £2,148 million Online pre & post roll grows dramatically Telecomms, Entertainment & Media, Retail, Finance and Consumer Good are best performing sectors

  47. Coverage so far

  48. Big thank you and all contributing media owners

  49. 10. QUESTIONS For more information info@iabuk.net 020 7050 6953

  50. Disclaimer The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online adspend figures collected by the IAB from its members in July 2009 through March 2010 and to deliver to the IAB the topline figures collated from this review; PwC has not verified the information which it received from the IAB, and provides no opinion or other form of assurance with respect to such information. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, neither the Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s contributors/subcontractors accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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