IAB Europe

1
IAB Europe

• Multimarket European Online AdSpend Figures
• Spring 2004
• IAB Europe Market Statistics Task Force
• For more information
• Robin Jezek
• iab-europe_at_europe-analytica.com
• 32 2 280 0847

2
Summary

• European online advertising spend
• Pan-European comparative analysis
• Comparison to the US
• European online advertising spend
• Country-by-country breakdown
• Future trends
• Annex More details on methodology

3
European online advertising spend
1.

• Comparative data

4
Year-on-year growth in Euro markets 2000-2002
Revenue Comparisons, year-on-year
Euros millions (rounded up to nearest million)
G gross
France net figures 2000 and 2001
34
32
32
29
20
15
Note Exchange rate as of February 25th 2004 from
www.xe.com/ucc/ 1 GBP 1.49414 EUR
5
European Comparison 2003Full year figures
Euros millions (rounded up to nearest million)
6
Quarter-on-quarter growth across countries
Euros millions, gross (Internet)
Revenue Comparisons, quarter-on-quarter
00
01
02
Source PricewaterhouseCoopers / Interactive
Advertising Bureau
7
Year-on-year growth in European markets
Per Capita Revenue Comparisons, year-on-year
Ad spend / total pop. (rounded up)
Source PricewaterhouseCoopers / Interactive
Advertising Bureau
8
Year-on-year growth in European markets
Per Internet User Revenue Comparisons,
year-on-year
Ad spend / total ONLINE pop. (rounded up)
Source PricewaterhouseCoopers / Interactive
Advertising Bureau
9
European Ad Spend 2002Comparison between reach
and percentage of total AdSpend
Source National IABs
Note Exchange rate as of February 25th 2004 from
www.xe.com/ucc/ 1 GBP 1.49414 EUR
10
Market share of internet
Internet advertising forecasts, vs total national
ad spend
Source Forrester Research
11
2002 European online advertising activity
Source Nielsen//NetRatings
12
Comparison to the US
2.

• Both economies have experienced growth
• US more dependant on dot-com ad revenue
• Sector has bottomed out, recovery begun
• US Internet ad market in 2002 was 5.95 billion
  (vs. 2001 -17).

13
US Internet advertising revenues from 1998 From
Q3 to Q4 2002 US Internet advertising increased
by 2.
01
02
98
99
00
millions, gross (Internet)
Source PricewaterhouseCoopers / Interactive
Advertising Bureau,
14
US 2002 Market stabilizes

• US Internet ad market in 2002 was 5.95 billion
  (vs. 2001 -17).
• Q3 to Q4 there was 25 in UK, in the US increased
  by 2.
• US as is experiencing a return to growth.
• Q3/4 2002 reflect a stabilizing online ad market.
• US Internet ad market in Q4 2002 was 1.5 billion
  (vs. Q4 2001 -9.8 - first single-digit
  year-on-year percentage decrease since Q1 2001).
• Quarter-on-quarter growth 2.
• First consecutive quarterly increase since Q2
  2000.
• These figures are for illustration and not
  comparison. Both economies experienced growth.

15
European online advertising spend
3.

• National data

16
Belgium

• Market upturn in first half 2003

17
Methodology notes

• The figures are gross
• The research includes/covers
• Sponsorship
• Email
• Barter
• The research does not include/cover
• Production costs not included
• Wireless
• Interactive television
• Wireless
• E-commerce

18
Online AdSpend trends Belgium
Millions Euros
2003 Q1-Q2 results
12,6m
11,5m
10,9m
9,2m
4,8m
2,1m
19
Finland

• Solid growth in the market

20
Methodology notes

• Figures here are a gross estimation (their
  research is based on net figures)
• The research includes/covers
• Advertising sales
• Classified and search engines
• Electronic directories
• Sponsorship
• Emails
• The research does not include/cover
• Advertising production costs
• Interactive television AdSpend
• E-commerce
• The coverage of the research is 90 of the
  Finnish market

21
Online AdSpend trends Finland
Millions Euros
42,6m
34m
19,5m
14,5m
22
France

• Internet surges forward in 2003 by 50

23
Methodology notes

• Figures in France are gross (pre 2002 they were
  net)
• The research includes/covers
• Advertising production and listing costs
• From 2003, email and promotional links are
  included
• The research does not include/cover
• Sponsorship
• Wireless
• Interactive television AdSpend
• E-commerce

24
Online AdSpend trends France
Millions Euros
Up by 50 from 2002 to 2003
463,3m
309m
1999 is a gross figure
184m
153m
2002 and 2003 are gross figures
79m
2000 and 2001 are net figures
25
Germany

• Consistent growth in the market

26
Methodology notes

• Figures in Germany are gross
• The research includes/covers
• Sponsorship
• Wireless
• Interactive television
• Email
• Search (estimation)
• The coverage of the research is between 70-80

27
Online Adspend trends Germany
Millions Euros
416m
These figures include an estimate for search
and have been adjusted to 100 coverage see
annex for notes
367m
293m
28
Greece

• Annualised growth for 2003
• predicted at 50

29
Methodology notes

• Figures in Greece are gross
• The research includes/covers
• Sponsorship
• The research does not include/cover
• Advertising production costs
• Interactive televisions
• Wireless
• Email
• E-commerce
• The coverage of the research is between 90-95

30
Online AdSpend trends Greece
Millions Euros
2003 Q1 results
4,6m
2,97m
3,14m
1,7m
31
Ireland

• Solid consistent growth

32
Methodology notes

• Figures for Ireland have been provided by IAB
  Europes research partner, Forrester Research
• They are estimates and cover online advertising
  as a whole and therefore include search and
  classifieds

33
Online AdSpend trends Ireland
Millions Euros
2003 estimate from Forrester research
includes web advertising as a whole
4m
3m
34
Italy

• Levelling out of the market with return to
  growth...

35
Methodology notes

• Figures in Italy are gross
• The research includes/covers
• Sponsorship
• Wireless
• Interactive television
• Classified
• E-commerce (but figures are not declared to the
  market)
• The research does not include/cover
• Advertising production costs
• The coverage of the research is 90

36
Online AdSpend trends Italy
Millions Euros
138,6m
106,8m
99,4m
103,4m
29,5m
Note Exchange rate as of February 25th 2004 from
www.xe.com/ucc/ 1 ITL 0.000516457 EUR
37
Netherlands

• Steady growth with positive future
• forecasts

38
Methodology notes

• Figures for Netherlands have been provided by IAB
  Netherlands together with its largest publishers
  (over 200 portals, directories and search
  engines) and its research partner
• BBC de Media en Reclame Bank
• The figures are net figures
• They are facts and cover online advertising as a
  whole and therefore include search, classifieds
  and e-mail.
• In 2004 IAB NL and BBC de Media en Reclame Bank
  will start measuring the gross ad spend figures.

39
Online AdSpendtrends Netherlands
Millions Euros
2003 facts by IAB BBC de Media en Reclame
Bank. 2003 growth 25 compared to 2002
40m
32m
32m
29m
22m
40
Online AdSpendtrends Netherlands
Millions Euros
90m
Forecast delivered by IAB Holland, based at 5
years experience
70m
55m
41
Poland

• Consistent growth in the market

42
Methodology notes

• Figures in Poland are gross
• The research includes/covers
• Sponsorship
• Search engines
• Email
• The research does not include/cover
• E-Commerce
• Affiliate programmes
• Classified
• The coverage of the research is 90

43
Online AdSpendtrends Poland
Millions Euros
32,2m
23,6m
18,9m
15,9m
10,9m
7,9m
5,3m
44
Slovenia

• Good basis for future growth

45
Methodology notes

• Figures in Slovenia are gross
• The research includes/covers
• Embedded formats
• Sponsorships
• Interruptive formats
• Display ad on email
• Recruitment
• Classified
• Search
• The research does not include/cover
• Advertising production costs
• Interactive televisions
• Mobile phone advertising
• E-commerce
• E-mail
• The research is done by Mediana Research Company
  and is based

46
Online AdSpend trends Slovenia
Millions Euros
2,7m
47
Spain

• Detailed breakdown of 2003 figures show market
  upturn at the end of the year with positive
  outlook expected

48
Methodology notes

• Figures here are a gross estimation (their
  research is based on net figures)
• The research includes/covers
• Online advertising as a whole, including
  classified, interactive television, wireless and
  search engines
• Breakdowns on barter
• Sponsorship
• The research does not include/cover
• Advertising production costs
• The coverage of the research is estimated at 95

49
Online AdSpend trends Spain
Millions Euros
71,5m
72,5m
50
UK

• The UK online media market hit 399m Euros for the
  period covering second half 2002 and first half
  2003

Note Exchange rate as of March 1st 2004 from
www.xe.com/ucc/ 1 GBP 1.49705 EUR
51
Methodology notes

• Figures in UK are gross
• The research includes/covers
• Classified
• Search
• Sponsorship
• The research does not include/cover
• Interactive television
• Email
• Wireless
• E-commerce
• Advertising production costs

52
Online AdSpend UK trends
Millions Euro
Note Exchange rate as of February 25th 2004 from
www.xe.com/ucc/ 1 GBP 1.49414 EUR UK
Advertising Association / WARC estimates
53
Record breaking growth continues
Euros m
121,7m
105,2m
95,5m
76,5m
67,7m
54,8m
Source PricewaterhouseCoopers / Interactive
Advertising Bureau iabuk.net 2004
Note Exchange rate as of March 1st 2004 from
www.xe.com/ucc/ 1 GBP 1.49705 EUR
54
2003 Jan-Jun 85 up on 2002 Increase 104.5m
Euros for comparable periods
2002 first-half vs. 2003 first-half
Euros millions
85
227m
122,5m
Source PricewaterhouseCoopers / Interactive
Advertising Bureau iabuk.net 2004
Note Exchange rate as of March 1st 2004 from
www.xe.com/ucc/ 1 GBP 1.49705 EUR
55
Growth of 69 vs. previous 12 months
Revenue Comparisons, 12-month period
Euro millions
399,1m
271,8m
69
235,5m
-13
90
143m
232
43,1m
Source PricewaterhouseCoopers / Interactive
Advertising Bureau iabuk.net 2004
Note Exchange rate as of March 1st 2004 from
www.xe.com/ucc/ 1 GBP 1.49705 EUR
56
The future
4.

• What happens next?
• 3,224m euro in 2005

57
Forecast European online ad spend 2002 to 2007
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Implications

• Growth across Europe has been rapid since records
  began in 97
• Online advertising spend has grown faster than
  any other advertising medium in history
• Growing market share vs other channels
• UK, France and Germany lead the European market
• The pattern of consistent growth has been
  mirrored across each national European market
• Slowdown softer than in other ad sectors in
  2001-2
• No sign of adspend trends falling at rate of
  adjustment in the value of some Internet stocks
• New markets from new nations are emerging

59
Annex - Methodology
5.

• Germany
• The figures were adjusted to 100 coverage and to
  take account of search
• 2003 265M x 1,33 (coverage) x 1,18 (search)
  416M Euros
• 2002 255.9M x 1.33 (coverage) x 1.08 (search)
  367.6M Euros
• 2001 211.6M x 1.33 (coverage) x 1.04 (search)
  292.7M Euros

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More information?

• Contact the IAB Europe secretariat for more
  details on national online advertising spend
  research is available from the secretariat
• Iab-europe_at_europe-analytica.com
• Tel [phone]

61
IAB EuropeAccelerating interactive medias
growth

• Thank you
• For more details contact
• Iab-europe_at_europe-analytica.com
• more information
• Robin Jezek
• iab-europe_at_europe-analytica.com
• 32 2 280 08 47