IAB Digital Ad Spend 2014

IAB / PwC UK Digital Adspend Study
Full Year 2013

Background
• Census of major UK media owners
• Digital Adspend – includes online and mobile
• Official Advertising Association figures since 1997
• Information collected each half year
• Data shown by
Category (display, search & classified)
Format (banners, pre-roll / post-roll)
Advertiser sector (consumer goods, finance)

Reported and estimated revenue
Reported Revenue
• Survey includes revenues submitted
by 100+ participants plus additional
online recruitment sites and TV
Broadcasters reported by WARC
• The figures are drawn up on the
basis of site declaration and have not
been verified
• Google and Twitter revenues included
in total figures are based on
published financials
Estimated Revenue
• Study includes estimation of Facebook,
Spotify, Millennial, Apple, LinkedIn,
Weather Channel and Mojiva revenues
by the IAB / PwC Advisory Board
• Except for above, reported figures have
not been adjusted for organisations that
did not participate in the survey
95% of 2013
total Adspend
5% of 2013
total Adspend

Adjustments and like-for-like growth reporting
Adjustments
• Figures are adjusted for double-counting, based on information provided by survey
participants
• Google display revenues and Google mobile revenues (search and display) are
also estimated by the PwC Advisory Board. This is not incremental spend as already
included in Google total revenues – what we estimate is how this revenue splits
between different formats and platforms.
• Total advertising revenue is reported on a gross basis
Like for like growth reporting
• This study reports like for like growth figures not only for total spend but also for
categories (display, search, classifieds)
• Only companies which submitted in both Full Year 2012 and Full Year 2013 have
been included in the like for like growth calculations
• 57 companies’ figures are excluded from the like for like comparisons for both online
and mobile because they did not report in both Full Year 2012 and Full Year 2013.

More accurate collection of Online
Performance Marketing revenues
Agency Commission
Net Revenue retained by
Affiliate
Net Revenue taken by
Affiliate but passed back
to publisher partner
Originallyreported
Totalnetrevenuenowreported

Digital Adspend
Digital includes online, mobile and tablet advertising:
Online • Traditional online advertising viewed on a desktop PC or laptop, accessed via the
internet connection
• Only media spend reported to ensure fair comparison to other media including
• Display advertising
• Search
• Classified
• Other
Mobile
Tablet
• Advertising that has been specifically tailored and served on a mobile device, accessed
via 3G or wifi
• Display advertising (including SMS/MMS)
• Classified
• Search
• Advertising that has been specifically tailored and served on a tablet device, accessed
via 3G or wifi
• Display advertising

2013 Research participants
24 7 Real Media, 4th Screen, 7th Chamber, Absolute Radio, AD2ONE, Adconion,
Addvantage Media, Admaxim, Adpepper, Affiliate Window, Affilinet, AOL, Archant,
Bauer, Be On, Beviacom (MTV), Blinkbox, Blis Mobile, BMJ Publishing Group, Byyd, C
Screens, CBS Interactive, Collective, Commission Junction, Conde Nast, Crimson
Tangerine, Deezer, Dennis Interactive, Digivibe, Disney, DMGMedia, Ebuzzing, EE, ESI
Media, ESPN, Expedia, Exponential, Fiksu, Flurry, Fox Networks, Freemax Media, FT,
Future Publishing, Gamer Network, Google, Guardian, Gumtree, Haymarket, Hearst,
Hibu, IGN, Immediate, Incisive Media, Inmobi, Inskin, Intela, Interactive Prospect
Targeting, IPC, Jobsite, Johnston Press, Linking Mobile, Madvertise, Magnetise,
Maximiles, Microsoft, Mobsta, Net Communities, News UK, Numbate, Odyssey Mobile,
OMG, PERFORM, Performance Horizon, Quidco, R.O.Eye, Racing Post, Rakuten
Linkshare, Reed Business Information, Reuters, Rightmove, Savoo, Shortlist, Specific
Media, Strikead, Supersonic, TalkSport, Tamome, Telegraph, Ten Thousand Hours, The
Institution of Engineering and Technology, The Student Room, This is Global, Three,
Tradedoubler, Trader Media, Tremor Video, Trinity Mirror, Twitter, Unanimis, Unruly
Media, Value Click, Vevo, Vibrant Media, Viewster, Virgin Media, Webgains,
WeRinteractive, Weve, w00t!, Yahoo, YOC, Yume, Zoopla and online recruitment sites
& TV Broadcasters through WARC

• Digital advertising reaches £5.448 billion in 2012
→ Display up to £1,479 million
→ Classified up to £818 million
→ Search up to £3,087 million
This time last year… (2012)

3. UK ADSPEND
HEADLINE RESULTS

SOURCE: IAB / PwC Digital Adspend Full Year 2013

Digital advertising spend – last 10 years
SOURCE: IAB / PwC Digital Adspend 2004 - 2013
£825
£1,366
£2,016
£2,813
£3,350 £3,541
£4,097
£4,822
£5,448
£6,300
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000
£7,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£Millions
Market
Share
figures out
soon

Which formats go where?
Format Category
Banners / Embedded* Display
Sponsorships* Display
Interruptive formats Display
Email display advertising Display
Tenancies* Display
Pre roll / Post roll video* Display
Social Video Display
Video other Display
Tablet advertising Display
In-game advertising Display
Display other* Display
Format Category
Paid for search* Search
Recruitment classified Classified
Consumer classified* Classified
B2B classified Classified
Solus email Other
Audio advertising Other
Lead generation Other
Mobile SMS/MMS* Other
* Includes mobile

The digital media mix
% share of revenues 2013
Category 2012 Share
Search 57%
Display 27%
Classified 15%

Display leads the way in 2013 with highest
like for like growth

Search nears £3.5 billion in 2013

Classifieds growth continues in
recovering economy

Banners & Embedded formats plus video
makes up 92% of digital display

Social media display grows
71% year on year
£0
£100
£200
£300
£400
£500
£600
£700
2009 2010 2011 2012 2013
Social Media Advertising
£Millions

Video grows by two thirds
SOURCE: IAB / PwC Digital Adspend Full Year 2013 / WARC.
For 2011 onwards revenues for online video advertising on TV broadcaster websites are taken from WARC / Thinkbox rather than submitted directly to PwC.
Adjustments have been made to the originally published 2011 and 2012 figures to reflect this.

Online Performance Marketing revenues
collected in a separate study
4,000 advertisers
spending
£1 billion
across12,000 publishersLead generation: 13%
Affiliate Marketing: 87%
www.iabuk.net/opm

Approximately £300 million of OPM revenue is
also submitted to Digital Adspend
SOURCE: IAB / PwC Digital Adspend Full Year 2013 & The Value
of Online Performance Marketing in the UK 2013
www.iabuk.net/opm

Top 20 online display advertisers 2013
SOURCE: Nielsen Ad Dynamix Jan – Dec 2013

Consumer goods increases lead as
biggest display industry sector
SOURCE: IAB / PwC Digital Adspend 2013 based on 46% reported display revenue for H1 and H2 2013

66 Submissions up from 59 in 2012

Strong like for like growth 2012 to 2013

The mobile media mix
% share of revenues 2013
Category 2012 Share
Search 69%
Display 29%
Classified 0.4%
SMS & Other 2%

Display also leads the way in mobile
like for like growth

Mobile display dominated by standard formats

Mobile video shows massive growth

2013 mobile display in app vs browser
*Note: Based on a sample of 48 participants and 2 estimated companies, accounting together for c.32% of total standard display revenue

2013 mobile rich media spend
2012 21%

One third of all social display
spend is in mobile

Consumer goods is also the biggest
mobile display industry sector
Based on 15% of total mobile display revenues

Consumer goods gains share in 2013
1%
2%
2%
4%
9%
9%
8%
10%
13%
22%
20%
1%
2%
2%
4%
7%
7%
9%
9%
11%
22%
24%
Leisure Equipment
Business & Industrial
Government, Social, Political Organisations
Travel & Transport
Motors
Finance
Technology
Telecomms
Retail
Entertainment & The Media
Consumer Goods
2013
2012

Mobile is now 16% of digital
0.8% 1.1%
2.0%
4.2%
9.7%
16.3%
2008 2009 2010 2011 2012 2013
17%
of total search
(2012 12%)
23%
of total display
(2012 10%)
0.3%
of total classifieds
(2012 0.2%)

Mobile growth vs online 10 years ago
£19.4m £51.0m
£153.1m
£165.7m
£196.7m
£465.0m
£825.1m
£1,366.5
£2,853.3
£28.6m £37.6m £83.0m
£203.2m
£528.5m
£1,031.0
1998 1999 2000 2001 2002 2003 2004 2005 2006
Online Adspend Mobile Adspend
2008 2009 2010 2011 2012 2013 2014? 2015? 2016?

Tablet dedicated display ad spend
*Note: This figure relates to tablet
specific advertising only (i.e. not
including internet advertising
displayed on a tablet by default).
It is based on revenues reported
by companies participating in the
online and mobile surveys who
were able to report this figure
separately, and can thus
underestimate the overall size of
the tablet dedicated advertising
spend
£34.4m*
2012 £6.8m SOURCE: IAB / PwC Digital Adspend Full Year 2013

Brand advertising online is 17% of total
SOURCE: IAB estimate based on IAB / PwC Digital Adspend Full Year 2013

2013 showed a shift in revenue models
Estimate only – based on 33% of measured revenue

Forecasts for 2014
Source: This Year Next Year Summer 2013 (GroupM) & Enders Analysis
Full year 2014
forecast
GroupM
Enders
Analysis
Average
Advertising Market +6.0% +4.6% +5.3
Online +14.3% +15.1% +14.7
Display +14.1% +14.5% +14.3
Search +15.8% +23.1% +19.5

FirstPartner Forecast 2014-2018
Source: FirstPartner
734
849
972
1,078
1,178
496
611
703
784
859
102
142
199
249
275
21
25
30
34
35
0
500
1,000
1,500
2,000
2,500
2014 2015 2016 2017 2018
£ millions
Messaging
Video
Display (Banners)
Search
Total
£2,143m
Total
£2,346m
Total
£1,903m
Total
£1,627m
Total
£1,353m
UK Mobile Advertising Spend Forecast 2014-2018

Summary for 2013
• Digital Adspend grows to £6.300 billion in 2013
• Up 15.2% on a like for like basis
• Display up 22.1% on a like for like basis - £1,862.1 million
• Classified up 8.9% on a like for like basis - £886.5 million
• Search up 14.2% on a like for like basis - £3,494.9 million
• Video, Social and Mobile continue to power display
• Consumer Goods and Finance are the top spending
display sectors, Entertainment and the Media now third
• Mobile spend soars by 93.3% to reach £1.031 billion

Big thank you
and all contributing media owners

Research@iabuk.net
0207 050 6969

Disclaimer
The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the online Adspend figures
collected by the IAB from its members in H2 2013 and to deliver to the IAB the topline figures collated from
this review; PwC has not verified the information which it received from the IAB, and provides no opinion or
other form of assurance with respect to such information.
The publication has been prepared for general guidance on matters of interest only, and does not constitute
professional advice. You should not act upon the information contained in this publication without obtaining
specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or
completeness of the information contained in this publication, and , to the extent permitted by law, neither the
Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s contributors/subcontractors accept or assume
any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to
act, in reliance on the information contained in this publication or for any decision based on it.

IAB Digital Ad Spend 2014

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