1. “Shaping the digital landscape
– conditions for a healthy,
growing ecosystem”
Kimon Zorbas, IAB Europe

2. Eurozone GDP Growth y-o-y
Italy GDP Growth y-o-y
2
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France GDP Growth y-o-y
Germany GDP Growth y-o-y
2013 Q4
2013 Q3
2013 Q2
2013 Q1
2012 Q4
2012 Q3
2012 Q2
2012 Q1
2011 Q4
2011 Q3
2011 Q2
2011 Q1
2010 Q4
2010 Q3
2010 Q2
2010 Q1
2009 Q4
2009 Q3
2009 Q2
2009 Q1
2008 Q4
2008 Q3
2008 Q2
2008 Q1
2007 Q4
2007 Q3
2007 Q2
2007 Q1
2006 Q4
2006 Q3
2006 Q2
2006 Q1
2005 Q4
2005 Q3
2005 Q2
2005 Q1
2004 Q4
2004 Q3
2004 Q2
2004 Q1
Eurozone volatility casts spell on media economy…
GDP growth in Europe
6%
4%
2%
0%
-2%
-4%
-6%
-8%

3. The value of the European online ad market 2012
€24.3bn
3
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4. CEE leads growth, but remarkable is the
sustainability of growth in mature markets
40%
Online ad growth
35%
30%
25%
20%
15%
12%
10%
5%
0%
-5%
-10%
4
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5. Online is more resilient to macro-pressure than
other media
2012: economic & advertising growth
30%
26.6%
25%
20%
15%
9.5%
10%
5%
11.5%
9.4%
7.2%
3.8%
2.9%
2.5%
0%
-5%
-10%
WE
-1.7%
CEE
Total
-4.0%
-5.2%
GDP
Total excl. Online
Online
5
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Total
-0.4%

6. Display growth shows few strong outliers above
average rate, yet more outliers below average rate
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
6
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7. Headroom for ad growth in emerging
markets is not an automatic opportunity
•
•
•
•
•
Gap to established market NOT headroom per se
Early advertisers are FMCGs, Retail, often 70%+ of adspend in emerging markets
Brazil: Retail No. 1 ad spend category, 2,5x bigger than 2nd ranked automotive
Spread of middle class, rise of disposable income, household savings crucial
Move to less disposable, higher-priced goods critical to break price negotiation monopoly of FMCGs
Advertising spend/capita (€)
350
300
11.0%
9.6%
9.5%
14.7%
2.9%
USA
2015
10.9%
Western Europe
2009
China
Argentina
400
2008
CAGR (2012-2015)
Indonesia
Brazil
1999
Ad spend per capita
Russia
450
1.5%
250
200
150
100
50
0
Indonesia
China
Copyright © 2011 IHS Inc. All Rights Reserved.
Russia
Brazil
Argentina
Western Europe
USA
7

8. Potential economic impact internet advertising
• Advertising expenditure on the rise (11.5% in 2012) (IAB Europe
AdEx)
• Macro economic impact of advertising in creating growth for G20
(McKinsey)
• Digital advertising in Europe generating EUR 69bn in consumer
surplus (McKinsey)
• EU: unexploited online jobs potential of 400,000 – 1.5 m (Vlerick
Management School)
Presentation name | 8

9. Privacy issues: tracking is the norm
•
Aim: measure internet tracking
consistently over time
Shall crawl (homepage) and deep crawl (6
internal page links)
Stat. significant increase among top 100,
top 1.000, top 25.000 sites
Flash cookies in decline
HTML 5 local storage on the rise
•
•
•
•
# cookies on top 100 sites
8000
5675
6000
4000
6485
3602
2000
0
2009
Copyright © 2011 IHS Inc. All Rights Reserved.
2011
2012
Source: University of Californica, Berkeley

10. Potential legislative impact on internet advertising
• Yesterday: no personal data needed
– Structure business accordingly (no personal data processing) and be out of scope
of legislation
• Today: reality check & wake up call
• E-Privacy Directive (adopted): introducing consent for cookies
– What is consent? UK solution?
• Data Protection Review (in process): regulating entire online sector
– All data = personal data, i.e. all online activity regulated
– Classic tracking = profiling and profiling being evil and almost impossible
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11. What do we need?
• Economic stability
• Support for entrepreneurs in digital & skills promotion
• Sector engagement on privacy & other consumer issues
– Not an IAB member? Join us: www.iabeurope.eu
• Solid legislative framework
• Some luck (economic uptake)
• Some …good politicians
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12. Questions?
Thank you!
More questions? ceo@iabeurope.eu