Digital Advertising in Europe. Daniel Knapp

Transcription

1 Digital Advertising in Europe Daniel Knapp

2 About the study

3 Data for 27 countries in Europe Austria Belarus Belgium Bulgaria Czech Republic Croatia Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Russia Romania Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey UK

4 Big picture

5 Market size digital advertising in Europe (2017) 48.0bn (+13.2%)

6 41.3bn net addition in 12 years, market doubled in last 5 years Total digital ad spend: historical perspective 41.3 bn ~2x

7 Digital offsets losses of traditional media, establishing a new all-time advertising market high Peak traditional media Historical market high Recessionary market low Flat market Online growth offsets decline New market high (+ 5.5bn) 120 Traditional vs Digital Advertising ( bn) bn Other Media Online 117.2bn

8 Plus ça change, plus c'est la même chose : consistency in growth rates over past six years despite fundamental market restructure 70% 60% 58.6% Historical digital advertising market growth 50% 40% 30% 39.0% Maximum 1.7 ppt variation in growth over the past 6 years 20% 10% 8.9% 18.6% 16.5% 11.5% 11.9% 11.6% 13.1% 12.2% 13.2% 0%

9 Markets

10 Top 5 ranking stable, Sweden moves up, UK maintains lead Top 10 Markets Ranked UK Germany France Russia Italy Sweden Netherlands Switzerland Spain Belgium UK is 2.4x Germany UK as big as next 3 markets combined 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,

11 Growth driven by CEE, Nordics, UK Digital Advertising Growth 2017 (YoY) 40% 35% 33.9% 30% 25% 20% 15% 10% 5% 0% 23.7% 21.9% 18.7% 18.4% 18.4% 16.7% 16.6% 16.1% 15.6% 14.3% 13.2% 12.5% 12.3% 11.7% 11.2% 10.8% 10.7% Belarus 10.6% Serbia 10.4% Russia 10.3% Czech Republic 9.9% Slovenia 9.7% Sweden 9.6% Hungary 8.8% Norway 6.5% Romania 4.4% 0.5% Turkey UK European Average Switzerland Italy Poland Germany France Croatia Finland Bulgaria Ireland Spain Denmark Austria Netherlands Belgium Slovakia Greece

12 A look back at % 35% 30% Romania Slovenia Ireland 25% Bulgaria Slovakia Sweden 20% Hungary Russia Spain Serbia 15% Turkey 10% Greece 5% Poland Italy France Finland Austria Netherlands Belgium Switzerland Denmark Norway UK 0% -5% Germany %

13 ...reveals a 3-tiered Europe in % 35% Belarus 30% Year-on-year growth 25% 20% 15% 10% 5% Serbia Russia Romania Slovenia Turkey Hungary Bulgaria Poland Croatia Spain Slovakia Czech Republic France Germany Italy Ireland Austria Netherlands Finland Belgium Norway Denmark Sweden Switzerland UK 0% -5% - Greece online ad spend per capita European average lines -10%

14 Formats

15 5.5bn added in total 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Digital Advertising Spend by Format ( m)* 19,169 6, % +4.8% +14.9% 21,929 6,712 16,800 19, ,000 20,000 15,000 10,000 5,000 0 Net additions 2017 ( m) 2,511 Display 309 Classifieds & Directories 2,7 Search Display Classifieds & Directories Search net additions

16 40% of digital ad spend is on mobile Display Search 100% 100% 90% 90% 80% 70% 60% 65.7% 58.0% 80% 70% 60% 65.8% 60.7% 50% 50% 40% 40% 30% 30% 20% 10% 0% 34.3% 42.0% % 10% 0% 34.2% 39.3% Mobile Desktop Mobile Desktop

17 Expansion of video drives share gains of total display Video 9.2% Video 11.0% Search 45.2% 42.5bn Non-Video Display 30.4% Total Display: 39.6%* Search 45.7% 48.0bn Non-Video Display 29.3% Total Display: 40.3% Classifieds & Directories 15.1% Classifieds & Directories 14.0% Video Non-Video Display Classifieds & Directories Search Video Non-Video Display Classifieds & Directories Search

18 Video reaches 27% of display, growing 4x non-video display Display by Format ( bn) % 35% 30% 25% 20% 2017 Growth 34.8% Share of Display Total 100% 23.3% 27.3% 80% 60% % 10% 5% 8.9% 40% 20% 76.7% 72.7% Non-Video Display Video 0% Non-Video Display Video 0% Non-Video Display Video

19 Out-Stream (+73.4% YoY) overtakes In-Stream Video (+6.9% YoY) 2016: Share of Digital Video Ad Spend 2017: Share of Digital Video Ad Spend 42.0% 58.0% 54.1% 45.9% In-Stream Out-Stream* In-Stream Out-Stream* *incl. in-feed

20 Video is more than ¼ of digital display advertising 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 38.5% 35.8% 32.3% 31.1% 27.9% 27.7% Video Share of Digital Display 2017 UK Italy Ireland Switzerland France Croatia 27.3% 26.6% 25.5% 24.7% 24.6% 24.1% 23.9% 23.1% 22.6% 21.8% 21.7% 19.4% 18.4% 17.4% 16.2% 14.9% 13.3% 12.8% 9.1% 8.9% European Average 7.1% 3.6% Bulgaria Slovakia Poland Czech Republic Netherlands Belgium Spain Sweden Germany Turkey Greece Belarus Austria Serbia Slovenia Finland Denmark Norway Russia Hungary Romania

21 Social added 7ppt to its share of display in % 41.8% 65.2% 58.2% Social Other Display Social Other Display

22 The trinity of SoMoVi: concentration of growth 2017: Display Growth 45% 40% 35% 34.8% 38.3% 41.1% 30% 25% 20% 15% 10% 8.9% 5% 0% Non-Video Display Video 2.5% Non-Social Display 1.3% Social Desktop Display Mobile Display

23 But what are the broader dynamics impacting future growth?

24 Contact: Alison Fennah Marie-Clare Puffett Daniel Knapp Connect IAB Europe Confidential IHS MarkitTM. All Rights Reserved.