iab / pwc uk digital adspend study h1 2013 · uk gdp - second quarter of continuous growth...
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IAB / PwC UK Digital Adspend Study
H1 2013
1. MARKET
BACKGROUND
&TRENDS
Confidence in the economy grows
UK GDP - Second quarter of continuous growth G
DP
Qua
rter
on q
ua
rter
gro
wth
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2
Summer of 2013
2013 was the ninth
warmest since records
began in 1910.
Andy Murray wins Wimbledon!
• Andy Murray's victory at
Wimbledon generated
120,000 Tweets per
Minute
• During the match, 8 of
the UK’s 10 trending
topics were Wimbledon-
related
SOURCE: http://digital-stats.blogspot.co.uk/2013/07/andy-murrays-victory-at-wimbledon.html
Royal birth announced on social media first
• Clarence House
tweeted about the royal
birth at 4.24pm, before
the official announcement
• It was retweeted over
15,000 times
• Generated 25,300
tweets sent per minute.
Broadband speeds rose by 64%
Fixed-line residential
broadband speeds
rose by
64% (5.7Mbit/s) since May
2012
4 in 5 UK households
now have a
residential
broadband
connection
0
2
4
6
8
10
12
14
16
Avera
ge s
peed (
Mbit/s
):
SOURCE: OFCOM report: http://media.ofcom.org.uk/2013/08/07/average-uk-broadband-speed-continues-to-rise/
Device ownership – June 2013
69% SMARTPHONE % OF TOTAL
DIGITAL POPULATION
28%
TABLET % OF TOTAL
DIGITAL POPULATION
12% (Jun 2012) 58% (Jun 2012)
SOURCE: UKOM, comScore MMX MP, July 2013
PC still dominating page views, but mobile
and tablets are gaining share.
SOURCE: UKOM, comScore Device Essentials, July 2013
24.5% from
Non-PCs
9.0% from
Non-PCs Feb 2012 July 2013
23% Multi-platform users consume 23%
more content than PC-only users
86% of 25-34s no longer rely on
PC internet access exclusively
SOURCE: UKOM, comScore MMX MP, July 2013
New devices = new digital time
AVERAGE PC MINS /
USER AVERAGE PC MINS /
USER
AVERAGE TOTAL
DIGITAL POPULATION
MINS / USER
July 2013 July 2012
SOURCE: UKOM, comScore MMX MP, July 2013
UK internet use – minute by minute
SOURCE: UKOM, comScore July 2013
2. METHODOLOGY
Background
• Census of major UK media owners
• Digital Adspend – includes online and mobile
• Official Advertising Association figures since 1997
• Information collected each half year
• Data shown by
Category (display, search & classified)
Format (banners, pre-roll / post-roll)
Advertiser sector (consumer goods, finance)
Reported and estimated revenue
Reported Revenue
• Survey includes revenues submitted
by 100+ partipants plus additional
online recruitment sites reported by
WARC
• The figures are drawn up on the
basis of site declaration and have not
been verified
• Google revenues included in total
figures are based on published
financials
Estimated Revenue
• Study includes estimation of Facebook,
Spotify, Millennial, Apple, LinkedIn,
eBay, Weather Channel and Mojiva
revenues by the IAB / PwC Advisory
Board
• Except for above, reported figures have
not been adjusted for organisations that
did not participate in the survey
95% of H1 2013
total Adspend
5% of H1 2013
total Adspend
IAB / PwC Advisory Board
Adjustments and like-for-like growth reporting
Adjustments
• Figures are adjusted for double-counting, based on information provided by survey
participants
• Google display revenues and Google mobile revenues (search and display) are
also estimated by the PwC Advisory Board. This is not incremental spend as already
included in Google total revenues – what we estimate is how this revenue splits
between different formats and platforms.
• Total advertising revenue is reported on a gross basis
Like for like growth reporting
• This study reports like for like growth figures not only for total spend but also for
categories (display, search, classifieds)
• Only companies which submitted in both H1 2012 and H1 2013 have been included in
the like for like growth calculations
• 26 companies’ figures are excluded from the like for like comparisons for both online
and mobile because they did not report in both H1 2012 and H1 2013.
Digital Adspend
Digital includes online, mobile and tablet advertising:
Online • 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
• Display advertising
• Search
• Classified
• Other (e.g. Lead Generation, Email, Audio)
Mobile
Tablet
• Advertising that has been specifically tailored and served on a mobile device, accessed
via 3G or wifi
• Only media spend reported to ensure fair comparison to other media including
• Display advertising (including SMS/MMS)
• Classified
• Search
• Advertising that has been specifically tailored and served on a tablet device, accessed
via 3G or wifi
• Only media spend reported to ensure fair comparison to other media including
• Display advertising
H1 2013 Research participants
247 Real Media, 4th Screen, 7th Chamber, Absolute Radio, AD2One, Adconion,
Addvantage Media, Adfonic, Admaxim, Adpepper, Affili.net, Affiliate Window, AN
Media, AOL, Archant, Bauer, Be On, Blis Mobile, BMJ Publishing, BSkyB, CBS,
Channel 4, Commission Junction, Conde Nast, Crimtan, Cscreens, Dennis
Interactive, Digivibe, Disney, eBuzzing, EE, ESPN, Expedia, Exponential, Fiksu,
Flurry, Fox Networks, Freemax Media, FT, FuturePublishing, Guardian, Global
Radio, Gumtree, Haymarket, Hearst, Hibu, The Institution of Engineering and
Technology, IGN, Immediate Media, Incisive Media, The Independent, Inskin,
Intela, IPC, Interactive Prospect Targeting, Inmobi, ITV, Jobsite, Johnston Press,
Linkshare, Madvertise, Magnetise, Maximiles, Microsoft, Linking Mobile, Mobsta,
MTV/Beviacom, Net Communities Ltd, News International, OMG, Performance
Horizon, Perform Group, Quidco, Racing Post, Reed, Reuters, Rightmove,
R.O.Eye, Savoo, Shortlist, Specific Media, Strikead, The Student Room,
Supersonic, Three, Telegraph, TradeDoubler, Trader Media Group, Trinity Mirror,
Unanimis, Unruly Media, Value Click, Vevo, Vibrant Media, Virgin Media,
Webgains, WeRInteractive, Weve, w00t!, Yahoo, Yoc, Yume, Zoopla and online
recruitment sites through WARC
• Digital advertising reaches £2.606 billion in H1
2012
• Up 12.6% on a Like for Like basis
→ Display up 10.6% on a Like for Like basis - £601 million
→ Classified up 7.2% on a Like for Like basis - £428 million
→ Search up 15.9% on a Like for Like basis - £1,532 million
This time last year… (H1 2012)
3. UK ADSPEND
HEADLINE RESULTS
SOURCE: IAB / PwC Digital Adspend H1 2013
SOURCE: IAB / PwC Digital Adspend H1 2013
4. THE DIGITAL
MEDIA MIX
Which formats go where?
Format Category
Banners / Embedded* Display
Sponsorships* Display
Interruptive formats Display
Email display advertising Display
Tenancies* Display
Pre roll / Post roll video* Display
Social Video Display
Video other Display
Tablet advertising Display
Dynamic in-game advertising Display
Display other* Display
Format Category
Paid for search* Search
Recruitment classified Classified
Consumer classified* Classified
B2B classified Classified
Solus email Other
Audio advertising Other
Lead generation Other
Search affiliate Other
Mobile SMS/MMS* Other
* Includes mobile
The digital media mix % share of revenues H1 2013
NB: Other includes Lead Generation, Search Affiliate, Solus Email, Mobile SMS/MMS and Audio
SOURCE: IAB / PwC Digital Adspend H1 2013
Category H1 2012 Share
Search 59%
Display 23%
Classified 17%
All categories show a
like for like increase for H1 2013
SOURCE: IAB / PwC Digital Adspend H1 2013
Search nears £2 billion for half year
SOURCE: IAB / PwC Digital Adspend H1 2013
Recovering economy boosts classifeds
SOURCE: IAB / PwC Digital Adspend H1 2013
Banners & Embedded formats continue to
dominate display (followed by video)
SOURCE: IAB / PwC Digital Adspend H1 2013
* See www.iabuk.net/OPM for more details
Social media display up dramatically
year on year
SOURCE: IAB / PwC Digital Adspend H1 2013
0
50000000
100000000
150000000
200000000
250000000
300000000
H1 2009 H1 2010 H1 2011 H1 2012 H1 2013
£50m
£0m
£100m
£300m
£250m
£200m
£150m
Social Media Advertising
Video returns to near 100% growth
NB: Social video and other video included for the first time in H1 2011
SOURCE: IAB / PwC Digital Adspend H1 2013
Online Performance Marketing
is 70% of ‘Other’
SOURCE: IAB / PwC Digital Adspend H1 2013
* See www.iabuk.net/OPM for more details
5. INDUSTRY
CATEGORIES
Top 20 online display advertisers
SOURCE: Nielsen Media Research Jan – Dec 2012
Consumer goods extends its lead
SOURCE: IAB / PwC Digital Adspend H1 2013 based on 43% of total digital display revenues for H1
6. MOBILE
59 Submissions up from 47 in H1 2012
SOURCE: IAB / PwC Digital Adspend H1 2013
Strong like for like growth H1 2012 to H1 2013
SOURCE: IAB / PwC Digital Adspend H1 2013
The mobile media mix % share of revenues H1 2013
Category H1 2012 Share
Search 71%
Display 27%
Classified 0%
SMS & Other 2%
SOURCE: IAB / PwC Digital Adspend H1 2013
Mobile like for like growth
SOURCE: IAB / PwC Digital Adspend H1 2013
Mobile display breakdown
SOURCE: IAB / PwC Digital Adspend H1 2013
Mobile display absolute growth
SOURCE: IAB / PwC Digital Adspend H1 2013
H1 2013 mobile display in app vs browser
*Note: Based on a sample of 40 participants and 2 estimated companies, accounting together for c.60% of total standard
display revenue SOURCE: IAB / PwC Digital Adspend H1 2013
Social embedded on mobile
SOURCE: IAB / PwC Digital Adspend H1 2013
Mobile revenue models
Digital - based on 34% of total revenue; Mobile - based on 6.5% of total revenue only
SOURCE: IAB / PwC Digital Adspend H1 2013
H1 2013 industry sector mobile display market
shares
*Note: Based on participants who submitted breakdown of the total Entertainment & Media spend into above sub-categories,
together accounting for c 100% of the Entertainment & the Media category spend SOURCE: IAB / PwC Digital Adspend H1 2013
Change in industry sector mobile display
market shares H1 2012 to H1 2013
Based on 26% of total mobile display revenues
SOURCE: IAB / PwC Digital Adspend H1 2013
1%
3%
1%
4%
10%
7%
12%
11%
13%
23%
14%
1%
2%
2%
4%
7%
8%
8%
9%
9%
23%
27%
Leisure Equipment
Business & Industrial
Government, Social, Political Organisations
Travel & Transport
Motors
Technology
Finance
Telecomms
Retail
Entertainment & The Media
Consumer Goods
H1 2013
H1 2012
Mobile is now 14% of digital
0.8% 1.1% 2.0%
4.2%
9.7%
14.1%
2008 2009 2010 2011 2012 H1 2013
15% of total search
20% of total display
0.4% of total classifieds
SOURCE: IAB / PwC Digital Adspend H1 2013
H1 2013
7. TABLET
27 Tablet submissions up from 8 in H1 2012
Tablet display Adspend
*Note: This figure relates to tablet
specific advertising only (i.e. not
including internet advertising
displayed on a tablet by default).
It is based on revenues reported
by companies participating in the
online and mobile surveys who
were able to report this figure
separately, and can thus
underestimate the overall size of
the tablet dedicated advertising
spend
£10.5m*
H1 2012 £2.4m SOURCE: IAB / PwC Digital Adspend H1 2013
7. ADDITIONAL DATA
Brand advertising online is 15% of total
SOURCE: IAB estimate based on IAB / PwC Digital Adspend H1 2013
H1 2013 showed a shift in revenue models
Estimate only – based on 33% of measured revenue
SOURCE: IAB / PwC Digital Adspend H1 2013
8. LOOKING AHEAD AND
SUMMARY
GroupM forecasts for 2013 & 2014
Group M forecast 2013 2014
Advertising Market +3.3% +3.5%
Online +11.6% +10.6%
Display +10% +11%
Search +14% +11%
Source: This Year Next Year Summer 2013 (GroupM)
Summary for H1 2013
• Digital Adspend grows to £3.041 billion in H1 2013
• Up 17.5% on a like for like basis
• Display up 23.0% on a like for like basis - £737.9 million
• Classified up 6.6% on a like for like basis - £452.7 million
• Search up 18.9% on a like for like basis - £1,807.5 million
• Video, Social and Mobile continue to power display
• Consumer Goods and Finance are the top spending display
sectors, Entertainment and the Media now third
• Mobile spend soars by 127% to reach £429.2m
SOURCE: IAB / PwC Digital Adspend H1 2013
Big thank you
and all contributing media owners
Disclaimer
The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online Adspend figures
collected by the IAB from its members in H1 2013 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.
The 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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