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BSAC keynote address
Advertising Trends
February 2014
Subject to final review
1© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
David Elms,
Head of Media, KPMG UK
WelcomeSubject to final review
2© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Advertising trends
The rise of digital and mobile
Real time advertising
The importance of data
Disintermediation and SoLoMo
Subject to final review
3© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
230 224258
273294 292
314 303319
336
2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
Global ad spending, 2006-2015E(GBP billions)
Advertising spending moving northwards globally and in the UK
Source: ZanithOptimedia
12.2 13.1 12.711.2 12.3 12.7 13.0 13.9 14.8 15.1
2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
UK ad spending, 2006-2015E(GBP billions)
Subject to final review
4© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
39%
19%
8%
14%
6%
7%
6%
1%
Global ad spend share across segments, 2013 and 2016
TV still retains the largest slice of ad spend
40%
18%3%
17%
8%
7%
7%1%
TV
Desktop internet
Mobile internet
Newspapers
Magazines
Outdoor
Radio
Cinema
2016
Source: JenithOptimedia, December 2013
Subject to final review
2013
5© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Internet advertising is catching up
Source: Nielsen global-adview-pulse-2013-q3-lite, October 2013
Subject to final review
6© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Internet advertising set to be the growth engine of the future
14.016.9
22.5
35.0
41.444.8
52.2
66.0
75.9
1.9 2.7 3.3 3.5 4.0 4.7 5.3 6.2 7.0
2006 2007 2008 2009 2010 2011 2012 2013E 2014E
Internet ad spend, 2006-2014E(GBP billions)
Global UK
Global display advertising
across the web, mobile
internet and apps
collectively grew by
32.4% in 2013
Internet advertising driven by digital innovations – such as better measurement of exposure to advertising, greater
localisation, and integration with mobile devices – and online video and social media
Internet advertising driven by digital innovations – such as better measurement of exposure to advertising, greater
localisation, and integration with mobile devices – and online video and social media
Expected to contribute
66% of growth in ad
expenditure, globally
Source: JenithOptimedia
Subject to final review
7© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Mobile ads driving the internet advertising market
5
18
2012 2015
Global mobile ad spending, 2012-2015(GBP billion)
UK mobile ad spending, 2008-2013(GBP million)
29 38 83203
526
1,196
2008 2009 2010 2011 2012 2013E
127% Y-o-Y growth *
* Estimated by KPMG based upon H1 growth
Subject to final review
8© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Evolution of advertising – towards multi screen and social media
2011-20142008-2010
2000s 2015 and beyond
Pro
min
ent
Em
erg
ing
Subject to final review
9© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
The importance of data - increased focus on targeted advertisingSubject to final review
10© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Social media and the speed of response
Thursday, 4pm
Catherine (Duchess of Cambridge)
spotted on Olympic Park, StratfordThursday, 5.30pm
Link on Home Page set-
up
Thursday, 4.15pm
Link posted on Facebook
page
Friday AM
Full Home Page
feature
Friday AM
Social
Engagement
1
2
3
4
5
Subject to final review
11© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
Real time advertising and the big blockbuster creative campaignsSubject to final review
12© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
The rise of SoLoMo and disintermediation Subject to final review
13© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a
Swiss entity. All rights reserved.
No ads, no games, no gimmicks – for how long?Subject to final review
© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of
KPMG Europe LLP and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative,
a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered
trademarks or trademarks of KPMG International Cooperative (KPMG
International).
The information contained herein is of a general nature and is not intended
to address the circumstances of any particular individual or entity. Although
we endeavour to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or
that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough
examination of the particular situation.
Thank You