BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Ad Ex 2009
Internet advertising spending in
Europe

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Agenda
Topline figures
Methodology
Key trends

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Topline Figures

BRANDING ONLINE: THE TIME IS NOW

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The Results

14.7 billion euros

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Key facts and figures

14.7bn market compared to 16.2bn in the US

Growing +4.5% like-for-like, a slow-down from +20% in 2008
But still outperforming all other media categories
Internet now contributes 18% to all media ad spend

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

A like-for-like growth rate of 4.5%

At constant country sample (19 countries of 2008)
At constant exchange rate
Internet adspend in bn
16
14

14.70
13.06

12

10
8
6
4
2

0
2008

2009

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Europe catches up with the US as the US market

declined in 2009
Total online ad spend Europe vs. USA (bn)
18

16.83

16

14

16.26

14.70
13.06

12
10

Europe
USA

8
6
4
2
0

2008

2009
Source for USA data: IAB/PWC

BRANDING ONLINE: THE TIME IS NOW

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Methodology

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Our European coverage now includes 23 countries

Four new countries added in 2009

Austria
Belgium
Bulgaria*
Croatia
Denmark
Finland
France
Germany
Greece
Hungary
Italy

Netherlands
Norway
Poland
Russia*
Romania
Slovenia
Slovakia*
Spain
Sweden
Switzerland*
Turkey
UK
*New in 2009

BRANDING ONLINE: THE TIME IS NOW

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Comparing apples to apples

GROSS

Revenue Billed

NET

Revenue Billed
No Agency commissions

RATECARD

Campaigns x
Ratecard

BRANDING ONLINE: THE TIME IS NOW

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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

BRANDING ONLINE: THE TIME IS NOW

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Key Trends

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Formats: Search strengthens lead with 46% share

2009 internet adspend by segment
1%

30%
Display
Classifieds/Directories

46%

Paid Search
Other

23%

BRANDING ONLINE: THE TIME IS NOW

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Formats: Search drives growth during recession

Growth of formats in 2009 (like-for-like)
12%

10.8%

10%
8%
6%

4.5%

4%

2%
0.3%
0%
-2%
-4%

Display

Classifieds

Search

Total

-1.4%
Note: Like-for-like growth is calculated excluding the new submissions (Bulgaria, Slovakia,
Switzerland and Russia) for which no data was available in 2008.

BRANDING ONLINE: THE TIME IS NOW

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Formats: Search nears 7bn

Internet adspend in m
8,000
6,733

7,000
6,000
5,000

4,366

4,000

3,420

3,000
2,000
1,000

182

0
2009
Display

Classifieds/Directories

Search

Other

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Markets: The top 6 countries make up 76% of the total

Online ad spend by country 2008 vs. 2009 (m)
4,011
3,834

UK
3,092
2,939

Germany

1,760
1,731

France
849
798

Italy

815
800

Netherlands

2009

683
635

Spain

2008

514

Russia

467
455

Sweden
Norway

401
390

Denmark

384
374
0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

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Markets: contrasting trends among emerging markets

Total growth by country from 2008 to 2009
20%

49%

15%

14%
13%

12%
10%
6%
5%
5%

5%

4%
3%

3%

2%

2%

2%

2%

1%

Norway

Slovenia

Denmark

France

Sweden

UK

Finland

Belgium

Germany

Italy

Hungary

Spain

Turkey

Poland

Netherlands

-5%

Austria

Greece

0%

-3%

-5%
Romania

7%

Croatia

7%

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Markets: contrasting trends among emerging markets

Online adspend growth 2009

+10% and above
+5% to +10%
0% to +5%
-5% to 0%

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Market: Growth and maturity

48%
16%

Greece
Austria
Poland

14%

Year-on-year growth 2009

12%

Turkey

10%

Spain

8%

Netherlands

4%

Slovenia

Belgium

Norway

France
Denmark

0%
-2%
-4%

UK

Sweden

Italy

6%

2%

Finland Germany
Hungary

Online Market Share*

Croatia
Romania

Slovakia

-6%

*Calculated using Screen Digest Advertising Intelligence data which

incorporates TV, print, radio, outdoor and cinema advertising

BRANDING ONLINE: THE TIME IS NOW

2-3 June 2010

Thank you
For more information please contact Catherine Borrel,
research@iabeurope.eu