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IAB Ireland / PwC Online Adspend Study for H1 2016
Launched 27th October 2016
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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Introduction
• Survey of all major Irish online media owners
• Includes desktop and mobile adspend in the Republic of Ireland
• 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.)
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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Study Methodology
• Internationally, IAB has been working with PwC since 1997 to survey the value of online adspend in Europe and North America.
• Our study includes data from 27 leading publishers, representing multiple websites.
• 10 sales houses and ad networks also participated.
• All data was provided to PwC on a confidential basis. The analysis is prepared by PwC based on the figures provided by participants, which have not been independently verified or audited by PwC.
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Participating Publishers
* Data Source from RTE’s Annual Report 2015
*
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Participating Adnetworks, Agencies & Social Media / Search Companies
* *
*
*Based on actual spend via agency data and consultation with social media and search companies
*
*
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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.
• Data has been included for Google, Facebook, Twitter and other social media platforms based on consultation with advertising agencies and industry representatives.
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Digital Adspend
Desktop: Traditional online advertising viewed on a desktop PC or laptop, accessed via an Internet connection:
• Display advertising (embedded, interruptive, social, VoD, email, display affiliate, native, etc.)
• Search
• Classified
Mobile/Tablet advertising that has been specifically tailored for and served on a mobile/tablet device and accessed via 3G or wifi:
• Display advertising (rich / non-rich formats, SMS, Social Media, in-app advertising, native, VoD, etc.)
• Search
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Explanation of Native
1. Discovery/recommendation units - are integrated into a web page, however, they do not mimic the appearance of editorial content feed; typically link to a page off the publisher's site. e.g. Outbrain and Taboola.
2. ‘In Feed’ publisher controlled - this form of native advertising is written in partnership with the publisher and the content looks like the surrounding editorial.
3. ‘In Feed’ advertiser controlled - this content is produced by the advertiser and it looks like the surrounding editorial in the feed.
4. Customized integration/innovation formats - these advertising units don't fit neatly into the categories above and they may involve custom playlists or may be platform specific.
Types of Native Advertising
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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Market Background
Source: Nielsen Ireland Consumer Confidence Q2 2016 12
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Market Background
Source: Nielsen Ireland Consumer Confidence Q2 2016 13
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The Mobile Opportunity for Brands
* Reuters Institute Digital News Report: Ireland 2016 ** Consumer Barometer 2016 *** Virgin Media Digital Insights Report 2016
WE LOVE
OUR
SMART
PHONES!
80% of Irish use a smartphone - up from 75% in 2015 *
62% have 3 or more connected devices**
65% feel more connected to family through digital communications***
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Smartphones are a Key Influencer on Path to Purchase!
Source: ** Google Consumer Barometer 2016 * Virgin Media Digital Insights Report 2016
50% of people compared products/prices/features online via a smartphone**
27% get ideas / inspiration online on smartphones**
25% looked for opinions, reviews, advice online**
Virgin Media predict that the value of online spending will almost double between now and 2021 from €7.5b to
€14.1b*
About 60% of Irish online shopping still goes abroad*
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Watching Video on Demand has become Mainstream
* Virgin Media Digital Insights Report 2016 ** IAB Ireland report: The Power of VOD 3, conducted by Nielsen June 2016
61% of Irish adults spend more than 4 hours a week consuming video streaming content*
Video advertising delivers hard to reach audiences, 59% of 15-24 year olds watch more VOD than TV**
Video advertising drives brand growth - following seeing a video ad 24% of adults visit the brand’s website and 20% search online for the brand**
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Marketers Increasing Focus on Digital
Digital is the top focus for marketing spend for Irish marketers in 2016
Digital was ranked the top area for marketing spend for Irish marketers in 2016 by 73% of the respondents to the
Alternatives/ MII Sentiment Survey 2016
28% of Irish marketers will dedicate between 21% and 50% of their marketing budget to digital in 2016
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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IAB Ireland Online Adspend
€216.0mGross Online
Adspend
€107.5mDesktop
€108.5mMobile
+ 33%versus H1 2015
Source: IAB / PwC Digital Adspend H1 2016 19
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Source: IAB / PwC Digital Adspend H1 2016
67%Increase in mobileon a like for like basis
11%Increase in desktopon a like for like basis
Online Adspend, H1 2015 vs H1 2016
IAB Ireland Online Adspend
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7793 97 108
16
37
65
109
92.9
129.8
162.0
216.0
2013 H1 2014 H1 2015 H1 2016 H1
Desktop Mobile
Adspend by Format (Desktop & Mobile)
Source: IAB / PwC Digital Adspend H1 2016
Historic online Adspend by Format (€m), H1 2013 – H1 2016
+ 33%
+ 67%
+ 11%
+ 25%
+ 72%
+ 5%
+ 40%
+ 132%
+ 20%
+ 19%
+ 236%
+ 5%
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107.8
93.8
14.4
Digital Media Mix (Desktop & Mobile)
Total online Adspend by Digital Media Mix (€m), H1 2016
50%Search
43%Display
7%Classified
€216.0mTotal
Source: IAB / PwC Digital Adspend H1 2016 22
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4571
89108
34
45
59
94
14
14
14
14
92.9
129.8
162.0
216.0
2013 H1 2014 H1 2015 H1 2016 H1
Search Display Classified
Digital Media Mix (Desktop & Mobile)
Source: IAB / PwC Digital Adspend H1 2016
Historic online Adspend by Digital Media Mix (€m), H1 2013 – H1 2016
+ 33%
+ 59%
+ 21%
+ 25%
+ 30%
+ 25%
+ 40%
+ 34%
+ 58%
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5%
2%
2%
3%
3%
4%
4%
7%
8%
10%
11%
12%
13%
15%
Other
Property & Recruitment
Education & Training
Gambling
Technology
Government/Public Service
Alcohol
Travel
Entertainment & Media
Auto
FMCG
Telecoms & Utilities
Retail
Finance
Spend by Industry (Desktop & Mobile)
Note: (1) Figures based on 43% of reported display revenue for H1 2016; excludes social mediaSource: IAB / PwC Digital Adspend H1 2016
Display Adspend by Industry, H1 2016(1)
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6 7 5 53 3 3 6
47 11
2121
28 24
2616
37
34
45
59
94
2013 H1 2014 H1 2015 H1 2016 H1
Native (incl. social in-feed)
Embedded, social display and GDN
Pre/post roll video (incl. social VoD)
Interruptive
Other
Display Spend Type (Desktop & Mobile)
Note: (1) Other includes: tenancy, email, display affiliate, SMS, fixed in-game and dynamic in-gameSource: IAB / PwC Digital Adspend H1 2016
Historic online Adspend by Spend Type (€m), H1 2013 – H1 2016+ 59%
+ 128%
+ 9%
+ 89%
+ 59%+ 4%
(1)
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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62.8
45.2
0.5
58%Search
42%Display
Digital Media Mix (Mobile)
Mobile online Adspend by Digital Media Mix (€m), H1 2016
€108.5mTotal
(1) c. €0.5 classified spend on mobile. Remaining c.€13.9m classified spend is on DesktopSource: IAB / PwC Digital Adspend H1 2016 27
(1)
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1129
4663
5
8
20
45
16.0
37.2
65.0
108.5
2013 H1 2014 H1 2015 H1 2016 H1
Search Display
Digital Media Mix (Mobile)
Source: IAB / PwC Digital Adspend H1 2016
Historic online Adspend by Digital Media Mix (€m), H1 2013 – H1 2016
+ 67%
+ 132%
+ 38%
+ 73%
+ 138%
+ 55%
+ 132%
+ 163%
+ 60%
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1 1 1 10 0 1 21 24
11
35
5
68
25
5
8
20
45
2013 H1 2014 H1 2015 H1 2016 H1
Native (incl. social in-feed)
Embedded, social display and GDN
Pre/post roll video (incl. social VoD)
Interruptive
Other
Display Spend Type (Mobile)
Note: (1) Other includes: tenancy, email, tablet, mobile content and SMSSource: IAB / PwC Digital Adspend H1 2016
Historic online Adspend by Spend Type (€m), H1 2013 – H1 2016
+ 136%
+ 197%
+ 33%
+ 150%
+ 167%- 4%
(1)
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Contents
1. Introduction
2. Study Methodology
3. Market Background
4. Online Adspend Results
5. Mobile Adspend Results
6. Growth Drivers
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Social Media (Desktop & Mobile)
*Social media display includes social media VoD. Data is based on actual spend figures submitted by Ad Agencies and consultations with social media companies.Source: IAB / PwC Digital Adspend H1 2016
€50.8m*
Up 130% on €22.1m* in H1 2015
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Pre/Post Roll Video (Desktop & Mobile)
*Includes Social Media VoDSource: IAB / PwC Digital Adspend H1 2016
€20.8m*
Up 89% on €11m* in H1 2015
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Native Advertising (Desktop & Mobile)
€36.6m*
This represents 39% of total digital display advertising
revenue up 129% on €16.0m in H1 2015
*Native advertising includes: ‘in-feed’ publisher controlled content, ‘in-feed’ advertiser controlled content, discovery/recommendation units and customised / innovation formatsSource: IAB / PwC Digital Adspend H1 2016 33
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Digital Formats (Desktop & Mobile)
Note: all formats are not mutually exclusive – there is some overlap. All growth figures are cross platform *Includes Social VoD, ** Includes Social and VoDSource: IAB / PwC Digital Adspend H1 2016
130%
89%
67%59%
21%
Social Media* Video on Demand(VOD)*
Mobile All Display** Paid Search
YoY Growth Rates H1 2016
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Questions?
Many thanks to:
• All of our Adspend Participants.
• Richard Phelan, Ross Moylan and Nuala Nic Ghearailt, PwC.
For More go to www.iabireland.ie or email [email protected]
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