adexbenchmark study 2017...k €41.3bn net addition in 12 years, market doubled in last 5 years 6.7...
TRANSCRIPT
#adexbenchmark
AdEx Benchmark Study 2017
Released 23 May 2018Digital Advertising in Europe
#adexbenchmark
The data and charts shown in this report cannot be used without the
expressed permission of IAB Europe and IHS Markit
#adexbenchmark
About the study
#adexbenchmark
adex
benc
hmar
k
Data for 27 markets 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
#adexbenchmark
Big picture
#adexbenchmark
The size of the digital advertising market in Europe (2017)
€48.0bn (+13.2%)
adex
benc
hmar
k
€41.3bn net addition in 12 years, market doubled in last 5 years
6.79.3
14.7 16.019.1
22.224.8
29.032.6
37.742.5
48.0
05
101520253035404550
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total digital ad spend: historical perspective€41.3 bn
~2x
adex
benc
hmar
k
Digital offsets losses of traditional media, establishing a new all-time advertising market high
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Traditional vs Digital Advertising (€bn)
Other Media Online€111.6bn €117.2bn
Peak ‘traditional’ media
New market high (+€5.5bn)
Recessionary market low
Historical market high Flat market Online growth
offsets decline
adex
benc
hmar
k
”Plus ça change, plus c'est la même chose”: consistency in growth rates over past six years despite fundamental market restructure
39.0%
58.6%
8.9%
18.6% 16.5% 11.5% 11.9% 11.6% 13.1% 12.2% 13.2%
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Historical digital advertising market growth
Maximum 1.7 ppt variation in growth over the past 6 years
#adexbenchmark
Markets
#adexbenchmark
adex
benc
hmar
k
Top 5 ranking stable, Sweden moves up, UK maintains lead
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
BelgiumSpain
SwitzerlandNetherlands
SwedenItaly
RussiaFrance
GermanyUK
Top 10 Markets Ranked
2017 2016
UK is 2.4x Germany
UK as big as next 3 markets combined
#adexbenchmark
adex
benc
hmar
k
UK more than twice as large as Germany
15,885
6,617
5,098
3,2772,577
1,842 1,837 1,788 1,7831,008 999 912 892 642 612 581 489 421 253 141 128 62 48 47 39
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000Digital Advertising Market Sizes 2017 (€m)
#adexbenchmark
adex
benc
hmar
k
Growth driven by CEE, Nordics, UK
33.9
%
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
%
10.6
%
10.4
%
10.3
%
9.9%
9.7%
9.6%
8.8%
6.5%
4.4%
0.5%
0% 5%
10% 15% 20% 25% 30% 35% 40%
Bela
rus
Serb
ia
Russ
ia
Czec
h Re
publ
ic
Slov
enia
Swed
en
Hun
gary
Nor
way
Rom
ania
Turk
ey UK
Euro
pean
Ave
rage
Switz
erla
nd
Italy
Pola
nd
Germ
any
Fran
ce
Croa
tia
Finl
and
Bulg
aria
Irela
nd
Spai
n
Denm
ark
Aust
ria
Net
herla
nds
Belg
ium
Slov
akia
Gree
ce
Digital Advertising Growth 2017 (YoY)
#adexbenchmark
adex
benc
hmar
k
A look back at 2016...
Bulgaria
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
ItalyNetherlands
Norw…
Poland
Romania
Russia
Serbia
Slovenia
Spain
Austria
Belgium
Sweden
SwitzerlandTurkey UK
Slovakia
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 50 100 150 200 250
#adexbenchmark
adex
benc
hmar
k
...reveals a 3-tiered Europe in 2017
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France Germany
Greece
Hungary
IrelandItaly
Netherlands
Norway
Poland
Romania
Russia
SlovakiaAustria
Slovenia
Belarus
Spain
Sweden
SwitzerlandTurkey
Serbia
UK
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
- 50 100 150 200 250
Year
-on-
year
gro
wth
online ad spend per capita European average lines
#adexbenchmark
Formats
adex
benc
hmar
k
€5.5bn added in total
16,800 19,311
6,4036,712
19,16921,929
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
2016 2017
Digital Advertising Spend by Format (€m)*
Display Classifieds & Directories Search
2,511
309
2,7…
0
5,000
10,000
15,000
20,000
25,000
Display Classifieds & Directories
Search
Net additions 2017 (€m)
2016 2017 net additions
adex
benc
hmar
k
40% of digital ad spend is on mobile
34.3% 42.0%
65.7% 58.0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
2016 2017
Display
Mobile Desktop
34.2% 39.3%
65.8% 60.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
2016 2017
Search
Mobile Desktop
adex
benc
hmar
k
Expansion of video drives share gains of total display
Video9.2%
Non-Video Display30.4%
Classifieds & Directories
15.1%
Search45.2%
2016
Video Non-Video Display Classifieds & Directories Search
Video11.0%
Non-Video Display29.3%
Classifieds & Directories
14.0%
Search45.7%
2017
Video Non-Video Display Classifieds & Directories Search
€42.5bn €48.0bnTotal
Display: 39.6%*
Total Display: 40.3%
adex
benc
hmar
k
Video reaches 27% of display, growing 4x non-video display
12.9 14.0
3.95.3
0.0
5.0
10.0
15.0
20.0
25.0
2016 2017
Display by Format (€bn)
Non-Video Display Video
76.7% 72.7%
23.3% 27.3%
0%
20%
40%
60%
80%
100%
2016 2017
Share of Display Total
Non-Video Display Video
8.9%
34.8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Non-Video Display
Video
2017 Growth
adex
benc
hmar
k
Out-Stream (+73.4% YoY) overtakes In-Stream Video (+6.9% YoY)
58.0%
42.0%
2016: Share of Digital Video Ad Spend
In-Stream Out-Stream*
45.9%
54.1%
2017: Share of Digital Video Ad Spend
In-Stream Out-Stream*
adex
benc
hmar
k
Video is more than ¼ of digital display advertising
38.5
%
35.8
%
32.3
%
31.1
%
27.9
%
27.7
%
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%
7.1%
3.6%
0% 5%
10% 15% 20% 25% 30% 35% 40% 45%
UK
Italy
Irela
nd
Switz
erla
nd
Fran
ce
Croa
tia
Euro
pean
Ave
rage
Bulg
aria
Slov
akia
Pola
nd
Czec
h Re
publ
ic
Net
herla
nds
Belg
ium
Spai
n
Swed
en
Germ
any
Turk
ey
Gree
ce
Bela
rus
Aust
ria
Serb
ia
Slov
enia
Finl
and
Denm
ark
Nor
way
Russ
ia
Hun
gary
Rom
ania
Video Share of Digital Display 2017
adex
benc
hmar
k
Social added 7ppt to its share of display in 2017
34.8%
65.2%
2016
Social Other Display
41.8%
58.2%
2017
Social Other Display
adex
benc
hmar
k
The trinity of SoMoVi: concentration of growth
8.9%
34.8%
2.5%
38.3%
1.3%
41.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Non-Video Display Video Non-Social Display Social Desktop Display Mobile Display
2017: Display Growth
#adexbenchmark
ContactAlison Fennah – [email protected]
Marie-Clare Puffett – [email protected] Knapp – [email protected]
Connect with us:@IABEurope
IAB Europe
www.iabeurope.eu
www.technology.ihs.com
@IHS4Tech