2009 uk online adspend study
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
2009 UK online adspend study
Agenda
1. Introduction
2. Study methodology
3. Market background and trends
4. UK online adspend – headline results
5. The digital media mix
6. Industry categories
7. Summary
8. Looking ahead…
9. Questions
1. INTRODUCTION
Background
• Census of all major UK online media owners
• Official Advertising Association figures since 1997• Information collected each half year
• Analysis available by
→ Format
→ Industry category
2. METHODOLOGY
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 vs estimated survey data
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
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 a gross basis
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
2009 research participants
Absolute Radio, Accelerator Media, 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 WARCRepresenting thousands of UK websites
3. MARKET BACKGROUND & TRENDS
UK GDP dives to – 6% YOY in Q2 2009
GDP GrowthEconomy grows by 0.3% in Q4 2009
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
Industry Forecasts for Online in 2009
Enders Analysis +2.2% (October 2009)
Industry Forecasts for Online in 2009
Zenith Optimedia -2.1% (Oct 2009)
Industry Forecasts for Online in 2009
GroupM +2.1% (Dec 2009)
This time last year
• 2008 was a strong year for online• Total spend grew from £2.8bn to 3.35bn• Online’s share of media grew to 19.2%• However total revenues in Q4 were
marginally down as the recession kicked in
Active users up 3 million since January 2009
Source: UKOM APS Jan 10; Nielsen Netview Jan 09-Dec 09
Jan 2010:Digital Universe 46.4m aged 2+Active Universe 38.9m aged 2+
92% on broadband (63% plus 2Mb)
Source: UKOM APS Jan 10
Netbook sales rocket
Online shopping defies the recession
14% YOY growthin 2009
4. UK ADSPEND HEADLINE RESULTS
£3,541.08mmarket in 2009
An increase of £191.39m year-on-year
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
2009 vs. 2008
4.2% increase
on a like for like basis
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
£153.1m
Annual Online AdSpend Growth2000 - 2009
£165.7m£196.7m£465.0m
£825.1m
£1,366.5m
£2,015.8m
£2,812.7m
£3,349.8m£3,541.1
5. Online in ContextBreaking market trends in the UK ad industry
% share of revenues for January to December 2009
24.0%
22.9%
18.5%
10.9%
5.1%4.1%
3.3%1.2%
10.1%Television *InternetPress DisplayDirect MailPress ClassifiedOutdoorDirectoriesRadioCinema
Total advertisingmarket
£15,446.7
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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.
Online’s market share for 2009 is 23%
-21.8%
-9.8%
-2.8%
4.2%7.6%
-32.2%
-16.4%-16.7%-17.4%
PressClassified
Directories Direct Mail Outdoor PressDisplay
Radio TV * Internet Cinema
Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.
* NOTE Television includes sponsorship revenues for the first time
Total advertising market growth = -11.2%
Year on year growth for 2009
Online’s growth continues in downturn
Mar
ket S
hare
Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC
Online’s market share for 2009 is 23%
0
200
400
600
800
1000
1200
Q198
Q398
Q199
Q399
Q100
Q300
Q101
Q301
Q102
Q302
Q103
Q303
Q104
Q304
Q105
Q305
Q106
Q306
Q107
Q307
Q108
Q308
Q109
Q309
£ m
illio
ns
Source: PricewaterhouseCoopers / Internet Advertising Bureau / Advertising Association / Radio Advertising Bureau / WARC
N.B. WARC Recruitment data included from 2003NOTE * Television includes sponsorship revenues for the first time
Radio
Outdoor
Internet
Press - Display
Television *
Press - Classified
Direct Mail
Online’s quarterly totals show growth
180.8505.6 552.4 594.7 633
782.2
1542.7 1552.6 1685.9 1708.3
2852.7
3541.13712.9
Cinema BusinessMagazines
Directories NationalNewspapers
Direct Mail PressDisplay Total
Television *
£m
Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau.
NOTE * Television includes sponsorship for the first time
Full year 2009
Directories are estimated
Full year adspend revenues across all media
• 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
6. THE DIGITAL MEDIA MIX
The digital media mix
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC. Chart above does not include Solus email at 0.2% market share
% share of revenues for the full year 2009
Full year total
£3,541.1
The digital media mix£
mill
ions
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
On a Like-for-Like basis Display and Classifiedsdecreased, while Search increased
L for L-4.4%
L for L-5.3%
L for L+9.5%
The digital media mix£
mill
ions
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
Year on year comparison
H2 2009 search figures up year on year
£m
Source: Internet Advertising Bureau / PricewaterhouseCoopers
Classified market is stabilising
£m
Reported Figures, not like for like comparisonSource: Internet Advertising Bureau / PricewaterhouseCoopers
The display digital media mix
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Full year display total£709.30m
% share of display revenues for the full year 2009
Display: Still dominated by banners, video shows exceptional growth
£m
Reported Figures, not like for like comparisonSource: Internet Advertising Bureau / PricewaterhouseCoopers
Video
Video shows market beating growth
Source: Internet Advertising Bureau / PricewaterhouseCoopers
£28.31min 2009
£ m
illio
nsDisplay formats showing actual
growth in 2009
Reported Figures, not like for like comparison
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
+18% +8%+8% +22%+44%
+2%
7. INDUSTRY CATEGORIES
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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.
H2 2009 Industry Sector display market shares
Based on 63% of total display ad spend
8. LOOKING AHEAD
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
9. SUMMARY
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
Coverage so far
Big thank you
and all contributing media owners
10. QUESTIONS
For more [email protected] 020 7050 6953
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.