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l’advertising online supera la televisione in UKDallo IAB Forum di Milano 2009
Citation preview
UK Online Advertising The Success StoryGuy Phillipson – CEO
In this presentation
• Online overtakes TV• Audience and Broadband• 5 reasons for success• What next in the UK?
1. Online revenues overtake TV
It’s Big
News
£1,752.1mmarket in H1 2009
An increase of£82m year-on-year
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
4.6% increase
H1 2009 vs. H1 2008
on a like for like basis
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Online advertising reaches record £920m in Q1 2009
47.442.836.638.936.645.251.163.888.0105.2119.7
152.1171.8224.1
303.5327.0
350.5
461.2514.9
583.7
653.8680.6
724.1754.2
847.0
920.0
832.0822.7846.1
834.0
385.5456.0
174.6254.6
0
100
200
300
400
500
600
700
800
900
1000
Q101
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
£ m
illio
ns
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
‘01 ‘03‘02 ‘04 ‘05 ‘06 ‘07 ‘08
Radio
Outdoor
Direct Mail
Press Display
TV
23.5%
18.5%
11.0% 4.4%
3.3%
1.0%4.8%
11.5%
21.9%
InternetTelevisionPress DisplayDirect MailPress ClassifiedOutdoorDirectoriesRadioCinema
% share of revenues for January to June 2009
Total advertisingmarket
£7.466bn
H1 2009 market share 23.5% (18.7% in H1 2008)
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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.
-25.0%
-15.6% -14.5%
-7.8%
4.6%
-37.3%
-16.1%-20.4%-22.0%
PressClassified
Directories Outdoor PressDisplay
TV Radio Direct Mail Cinema Internet
Total advertising market growth = -16.6%
Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.
Online only medium showing growth in H1 2009
Year on year growth for H1 2009
Total by Country 2008 and 2007
€ 2,889
€ 2,501
€ 1,537
€ 729
€ 667
€ 497
€ 282
€ 3,441
€ 2,975
€ 1,821
€ 794
€ 799
€ 628
€ 442
€ 415
€ 345
€ 286
UK
Germany
France
Netherlands
Italy
Spain
Sweden
Denmark
Norway
Belgium
2007
2008
Source: IAB Europe/PwC ©
The largest 6 countries make up 81% of the total
Spend on online as a percentage of all media spend by country
24.4%23.1%
21.1%19.5%
18.0%16.1%
15.2%12.7%
11.5%10.8%10.5%
8.9%8.7%
6.8%2.1%
DenmarkUK
Norway Sweden
NetherlandsFrance
GermanyPolandFinland
HungaryBelgium
SpainItaly
AustriaGreece
Source: IAB Europe/PwC, WARC
Online has established itself as a main medium with a share of 20% and more in several countries
Note: This is based on WARC main media spend data, excluding internet with IAB ad spend added back in
UK is 10 points ahead of the US
USAat
13%
Audience and Broadband infrastructure
34.7m36.4m
Jul- Dec 2008 Jun - Jan 2009
Number of internet users* in the UK
Source: NRS UKOM: Jul-Dec 2008; Jan – June 2009; *adults using the internet at least once in the last 12 months
71%UK Pop
73%UK Pop 44%
Online Pop
49%Online
Pop
Internet users going online more than once a day
Number of people online
15.3m
17.8m
Jul- Dec 2008 Jun - Jan 2009
44%online
pop
49%online
pop
18.1
20.8
22.924.6
27.729.1
31.7
34.1
93%
12%
10
15
20
25
30
35
Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 090%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UsersBB
Continuous growth in online audiences and broadband penetration
% B
road
band
acc
ess
at h
ome
Onl
ine
audi
ence
(mill
ions
)
Source: BMRB Internet Monitor
Majority of broadband services are now above 2 MB
19%
6%
34%
24%
7%
70%
92%
47%
0% 20% 40% 60% 80% 100%
2007
2008
2009
< 2MB2 MB>2 MB
Re-Based: All Internet users aged 15+ who know their broadband connection speedSource: BMRB Internet Monitor May 2007; May 2008; May 2009
56% of home broadband users have used wireless broadband at home in the last month (May 2009)
35
29
25
56
47
19
25
45TVInternetRadioNewspapersMagazines
7
24
47
4
18
Weekdays
Saturdays Sundays
Source: BMRB Internet Monitor, May 2009 Base: All Internet users aged 15+
Online second only to TV% of media time for all internet users
The broadband leaderboard
92%
90%
88%
88%
82%
69%Switzerland
Italy
United Kingdom
Germany
Spain
France
Source: Nielsen Online, September 2009
5 Reasons for success
1. Accountability – Online’s Key Strength
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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.
Half year total£1,752.1m
% share of revenues for H1 2009
The digital media mix
18.1%
19.2%62.6%
DisplayClassifiedsPaid for searchSolus Email
Search is the gateway to brands
• Engagement• Purchase• Registration• Retention• Awareness• PR
Search
More methods of accessing search
Mobile search• Locations• Price comparisons• News• Sport• Weather• Video
“iPhone is already driving unheard-of levels of mobile internet usage, and the introduction of flat rate data tariffs is expected to increase this further.” Vivek Dec, O2
2. “Early Adopter” Categories
Cars, Tech, Mobile, Finance, Travel…
Display Sector Market Shares
3.5%
4.0%
6.1%
8.1%
9.4%
9.5%
11.8%
13.2%
13.3%
19.1%
Business and Industrial
Government, social, poilticalorganisations
Retail
Consumer Goods
Automotive
Travel & Transport
Entertainment & the Media
Finance
Telecomms
Technology
H1 2009
IAB estimates for industry sector shares are based on samples of categorised net revenue from key IAB members provided by PwC. Data excludes unclassified figures and covers 85.5% of online revenues in H1 2009.
*
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Based on 86% of total display ad spend revenues
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
And 5 years ago….
IAB estimates for actual ad spend by industry are based on samples of categorised revenue from key IAB members provided by PwC. The ranking now shows Telecoms as a separate category (previously included in Business & Industrial).Data excludes unclassified figures.
0.4%
0.5%
1.1%
1.5%
1.6%
2.8%
4.0%
4.8%
8.1%
10.8%
11.8%
13.5%
19.4%
Leisure
Consumer-to-consumer Classifieds
Govt & other organisations
Gardening & Agriculture
Business & Industrial
Retail
Telecoms
Consumer goods
Entertainment & Media
Automotive
Travel & Transport
Technology
Finance
3. Video and Rich Media
Video pre-roll spend up 195%
Up 99% Up 195%Mobile and Video are young shooting stars
Audiences Watching Video
Online Video Works!Online Ad Effectiveness: Display vs. Video Units
4. TV and Online –Better Together
TV Advertising & Online Advertising Are More Effective When Used Together
Impressions of Uniqueness Are Greatly Improved
17
30
66
38
57
79
1523
52
Finance category average Car category average FMCG category average
Seen TV only or Online only Seen Both Seen Neither TV nor Online
% Agree: ‘This brand offers something unique from other brands’
Uplift among those exposed to both TV + Online :
+27% points
+13% points+21% points
= Significantly higher
= Significantly different to group who’ve seen neither TV nor Online
25 25
69
4551
77
19 18
56
Finance category average Car category average FMCG category average
Seen TV only or Online only Seen Both Seen Neither TV nor Online
TV & Online Ads Together Raise Purchase Consideration
Base : 16-34 ads main shoppers (1,004)
% Agree: ‘I am likely to buy/use this brand in the future’
+26% points
Uplift among those exposed to both TV + Online :
+20% points
+8% points
= Significantly different to group who’ve seen neither TV nor Online
= Significantly higher
5. Agency Infra-structure
There used to be a digital divide in media agencies
1999 1999
Digital Specialist
The Rest!
Traditional Shops
Now they’re all doing it!
2009
Creative comes from specialists
Traditional Shop
Art Director +
Copywriter
Digital Agency
Creative Director+
Technologist
What next in the UK?
The UK Industry Planning System Launches in January 2010
Thank you