2009 uk online adspend study
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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

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2009 UK online adspend study

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2009 uk online adspend study

2009 UK online adspend study


Agenda

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

1. Introduction


Background

Background

Census of all major UK online media owners

Official Advertising Association figures since 1997

Information collected each halfyear

Analysis available by

Format

Industry category


2 methodology

2. Methodology


Reported vs estimated survey data

Reported vs estimated survey data

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 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 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 agrossbasis

    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

2009 research participants

Absolute Radio, AcceleratorMedia, 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 WARC

Representing thousandsof UK websites


3 market background trends

3. Market background & trends


Uk gdp dives to 6 yoy in q2 2009

UK GDP dives to – 6% YOY in Q2 2009

GDP GrowthEconomy grows by 0.3% in Q4 2009


Ipa marketers bellwether 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

Industry Forecasts for Online in 2009

Enders Analysis +2.2% (October 2009)


Industry forecasts for online in 20091

Industry Forecasts for Online in 2009

Zenith Optimedia

-2.1% (Oct 2009)


Industry forecasts for online in 20092

Industry Forecasts for Online in 2009

GroupM +2.1% (Dec 2009)


This time last year

This time last year

  • 2008 was a strong year for online

  • Total spend grew from £2.8bn to 3.35bn

  • Online’sshare 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

Active users up 3 million since January 2009

Jan 2010:

Digital Universe 46.4m aged 2+

Active Universe 38.9m aged 2+

Source: UKOM APS Jan 10; Nielsen Netview Jan 09-Dec 09


92 on broadband 63 plus 2mb

92% on broadband (63% plus 2Mb)

Source: UKOM APS Jan 10


Netbook sales rocket

Netbook sales rocket


Online shopping defies the recession

Online shopping defies the recession

14% YOY

growth

in 2009


4 uk adspend headline results

4. UK adspend headline results


3 541 08m market in 2009 an increase of 191 39m year on year

£3,541.08mmarket in 2009Anincreaseof£191.39m year-on-year

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


2009 vs 2008

2009 vs. 2008

4.2% increase

on a like for like basis

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


2009 uk online adspend study

Annual Online AdSpend Growth

2000 - 2009

£3,541.1

£3,349.8m

£2,812.7m

£2,015.8m

£1,366.5m

£825.1m

£465.0m

£165.7m

£196.7m

£153.1m


5 online in context breaking market trends in the uk ad industry

5. Online in ContextBreaking market trends in the UK ad industry


Online s market share for 2009 is 23

% share of revenues for January to December 2009

Online’s market share for 2009 is 23%

Total advertisingmarket

£15,446.7

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.

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


Online s growth continues in downturn

Online’s growth continues in downturn

Year on year growth for 2009

Total advertising market growth = -11.2%

Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.

* NOTE Television includes sponsorship revenues for the first time


Online s market share for 2009 is 231

Online’s market share for 2009 is 23%

Market Share

Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC


Online s quarterly totals show growth

Online’s quarterly totals show growth

Television *

Press - Display

Direct Mail

Press - Classified

Internet

Outdoor

Radio

£ millions

N.B. WARC Recruitment data included from 2003

NOTE * Television includes sponsorship revenues for the first time

Source: PricewaterhouseCoopers / Internet Advertising Bureau / Advertising Association / Radio Advertising Bureau / WARC


Full year adspend revenues across all media

Full year adspend revenues across all media

Full year 2009

£m

Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau.

NOTE * Television includes sponsorship for the first time

Directories are estimated


2009 full year summary

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

6. THE DIGITAL MEDIA MIX


The digital media mix

The digital media mix

% share of revenues for the full year 2009

Full year

total

£3,541.1

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC. Chart above does not include Solus email at 0.2% market share


The digital media mix1

The digital media mix

On a Like-for-Like basis Display and Classifieds

decreased, while Search increased

L for L

+9.5%

£ millions

L for L

-5.3%

L for L

-4.4%

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


The digital media mix2

The digital media mix

Year on year comparison

£ millions

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


H2 2009 search figures up year on year

H2 2009 search figures up year on year

£m

Source: Internet Advertising Bureau / PricewaterhouseCoopers


Classified market is stabilising

Classified market is stabilising

£m

Reported Figures, not like for like comparison

Source: Internet Advertising Bureau / PricewaterhouseCoopers


The display digital media mix

The display digital media mix

% share of display revenues for the full year 2009

Full year

display total

£709.30m

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


Display still dominated by banners video shows exceptional growth

Display: Still dominated by banners, video shows exceptional growth

Video

£m

Reported Figures, not like for like comparison

Source: Internet Advertising Bureau / PricewaterhouseCoopers


Video shows market beating growth

Video shows market beating growth

£28.31m

in 2009

Source: Internet Advertising Bureau / PricewaterhouseCoopers


Display formats showing actual growth in 2009

Display formats showing actual growth in 2009

+2%

£ millions

+44%

+8%

+8%

+22%

+18%

Reported Figures, not like for like comparison

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


7 industry categories

7. INDUSTRY CATEGORIES


H2 2009 industry sector display market shares

H2 2009 Industry Sector display market shares

Based on 63% of total display ad spend

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.

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC


8 looking ahead

8. LOOKING AHEAD


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

9. SUMMARY


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

Coverage so far


Big thank you

Big thank you

and all contributing media owners


10 questions

10. QUESTIONS

For more information

[email protected]

020 7050 6953


Disclaimer

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.


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