Trends Report 2011 UK & Europe

TABLE OF CONTENTS
Executive Summary 2
United Kingdom
Internet Usage 3
Online Activities 4
Advertising Spend 5
Internet Advertising 6
Paid Search 7
Display Advertising 8
Mobile Marketing 9
Social Media 10
Europe
Internet Usage 14
Internet Advertising 15
Social Media 16
France Overview 17
Source of all statistics:
Spain Overview 20
The Netherlands Overview 23
About WSI 26

UK & EUROPE Executive Summary

Internet Advertising and Social Media
Marketing Remains Prominent
After the economic challenges of 2009, companies around
the world began to experience a gradual recovery last year as
the term “recession” started to fade. More specifically,
advertising revenues made a comeback in 2010, with a great
deal of emphasis being placed on digital forms of marketing
and communications.

Over the past year, Internet advertising, including paid
search, display ads and social media marketing saw an
increase in spending among UK and European marketers, as
less focus was placed on traditional forms of advertising,
such as newspaper, radio and television. Recent statistics
indicate that this trend is expected to continue in 2011.

As the online population continues to rise, marketers are
allocating a greater share of their advertising dollars toward
the Internet. Additionally, the social media audience is
growing at a rapid pace, transforming the way companies
communicate and market to their target audience. Gone are
the days when advertising was a one-way messaging
strategy. Today, digital media provides new channels of two-
way communication, and this paradigm shift is evident in the
way marketers are spending their advertising dollars.

This Internet Marketing Trends Report is a brief synopsis of
current online marketing trends in the UK and Europe, as
well as projections for the next few years. Specifically, the
report covers Internet usage and penetration, online
activities, advertising spending, Internet marketing, social
media trends and a brief mention of mobile marketing.

For more information about WSI’s Internet marketing services,
please contact your local WSI Consultant.

Copyright ©2011 by Research and Management Page 2
WSI Internet Marketing Trends Report 2011

UNITED KINGDOM Internet Usage

UK Internet Users By Age
 The majority of the UK online
population is 25 years and older

 18% of UK Internet users are
between 25-34, while 27% are
within the age bracket of 35-49

 Interestingly, the second largest
share of UK Internet users (25%)
is between the ages of 50-64

 Children and teenage Internet
users make up a 24% share of the
country’s total online population

Frequency of Internet
Usage in the UK
 The majority of the UK online
population between the ages of
16 and 54 use the Internet every
day or almost every day

 Of those between the ages of 16-
24, 82% are online daily, while
15% use the Internet once a week

 81% of UK Internet users
between 25-44 are online daily,
while 80% of those between the
ages of 45-54 use the Internet
virtually everyday


UNITED KINGDOM Online Activities

Online Activities of UK
Internet Users
 Email is the most popular online
activity among Internet users in
the UK (90% of respondents)

 Researching about products and
services is also a common activity,
according to 75% of respondents

 Posting messages to chat sites,
blogs and newsgroups is
widespread among 16-24 year
olds (75% of respondents)

 Half of those between 16-25 and
43% of those aged 25-44 upload
self-created content online

Search and Social Media
Popular in the UK
 Google UK is the most popular
site in the UK with 9.44% market
share of visits in August 2010

 The next most popular website is
Facebook (6.76% share)

 Windows Live Mail was ranked in
3rd place (2.26%) with YouTube in
4th place (2.09%)

 Other sites mentioned in the top
10 are eBay, BBC, MSN and
Yahoo! UK and Ireland


UNITED KINGDOM Advertising Spend

Internet Advertising Sees
More Growth than TV
Advertising in the UK
 Internet advertising spending in
the UK is expected to grow by
2.9% in 2011, which is almost
triple the growth that TV
advertising will see (1%)

 By 2012, Internet advertising
spending will increase again by
3.5%, which is still slightly more
than TV advertising growth (3%)

 Interestingly, newspaper ad
spending growth has consistently
been in the negatives since 2006

Internet Advertising
Revenues Higher Than
Other Media Advertising
 According to MAGNA, Internet
advertising revenues surpassed all
other media advertising revenues

 In 2010 Internet advertising
reached £3.31 billion in revenue
while TV advertising saw £3.01
billion in revenues

 This year, Internet advertising
revenues will increase to £3.44
billion still surpassing TV and
newspaper advertising revenues


UNITED KINGDOM Internet Advertising

Steady Increase in Online
Advertising Spending
 eMarketer predicts that £3.98
billion will be spent advertising
online this year in the UK, a 4.9%
increase over 2010

 According to the same study,
£4.33 billion will be spent
advertising online next year (8.8%
increase)

 This growth is expected to
continue over the next few years
with £4.59 billion and £4.84
billion spent online in 2013 and
2014 respectively

Internet Advertising Takes
Equal Share of Total Ad
Spend Along With TV
 27% of total advertising spending
in the UK was allocated toward
online advertising in 2009, equal
to the share TV advertising had

 One quarter of total advertising
dollars was spent on newspaper
ads, while the remainder was
divided among magazine,
outdoor, radio and cinema ads


UNITED KINGDOM Paid Search

Paid Search Advertising
Spending Increases
 Paid search advertising in the UK
is expected to increase steadily
over the next few years

 This year, £2,455 million will be
spent on paid search advertising,
a 5.4% increase over 2010

 This number is expected to
increase by 9% to reach £2,675
million in 2012 and again by 6.5%
to reach £2,850 million in 2013

 By 2014, £3,025 million will be
spent advertising with paid search

Industries Using Search
Advertising in the UK
 Industries advertising on search
engines include builders
(representing 1.8% of total
advertisers) and florists (1.55%)

 Carpet and rug shops represent
1.42% of those using search
engines to market their business,
while 1.37% of total search
engine advertisers are printers

 Other industries mentioned in the
study are beauty salons, car
service shops, solicitors, MOT
testers, bed and breakfasts and
hotels / inns


UNITED KINGDOM Display Advertising

UK Spends More on
Display Advertising
 According to eMarketer, display
advertising spending will increase
by 8.3% in 2011 (£845 million)

 Next year, display advertising
growth will increase again by
14.2% to reach £965 million

 By 2014, £1,115 million will be
spent on display ads, a 6.7%
change over the previous year

Top 8 Websites in the UK
for Online Display Ads
 Facebook is by far the most
popular website for display
advertising in the UK with a 58%
share of total online display ads

 Microsoft sites take up a 12%
share of all online display ads,
while eBay consumes a 7% share

 Other sites mentioned in the top
8 for display ads include Yahoo!
sites, Google sites, AOL and
Trader Media Group


UNITED KINGDOM Mobile Marketing

Mobile Advertising Takes
a Larger Budget Share
 In 2011, 29% of UK marketers will
spend 6-10% of their total digital
budget on mobile advertising

 This is a considerable increase
over the 13% that said they would
allocate that share toward mobile
advertising in 2009

 13% of marketers will spend 11-
20% of their total digital budget
on mobile advertising this year,
while 6% of respondents said that
21-40% of their budget will be
spent on mobile

Mobile Advertising
Spending Will Soar in the
Next Few Years
 Mobile advertising spending saw
a slight increase between 2009 to
2010 but is expected to jump
even more over the coming years

 In 2010, £49.8 million was spent
on mobile advertising in the UK, a
£12.2 million increase over 2009

 This number is expected to surge
by 2014 with an estimated £285
million to be spent on mobile
advertising in the UK


UNITED KINGDOM Social Media

More People Using Social
Networks in the UK
 This year, more than half of all
Internet users (52.6%) in the UK
will be on the social networks
totaling to 24 million people

 In 2012, 55.3% of the online
population will be using social
networking sites (25.9 million)

 27.7 million people will use social
networks in 2013 and by 2014,
almost 60% of the UK online
population will become social
network users

Social Networks Are Being
Used Several Times a Day
 Social network usage is becoming
a daily activity in the UK

 69% of UK social network users
said they use social network sites
several times or at least once a day

 21% of respondents use social
networks several times or once a
week, whereas 7% use social
networks several times or once a
month



Most Popular Social
Networks in the UK
 The #1 social network in the UK is
Facebook with 33.1 million
unique visitors, reaching 76.3% of
the population

 The 2nd most popular social site is
Windows Live with 6.8 million
unique visitors (15.8% reach)

 Twitter came in 3rd place with an
11.6% reach (5 million visitors)

 Other popular social networks
include LinkedIn (4th), MySpace
(5th) and Bebo (6th)

Trust for Social Networks,
Forums, Blogs & Reviews
 19% of consumers between the
ages of 18-34 in the UK, Canada
and USA said they trust
information found on social
networks

 Meanwhile 14% of those in the
same age bracket said they trust
online forums, blogs, reviews and
chat rooms

 Overall, consumers agreed they
had more trust in social networks
(12% of respondents) than online
forums, blogs, reviews or chat
rooms (8% of respondents)



Brand Categories That
Social Media Users Are
Interested In
 23% of Internet users in the UK
are interested in engaging with
entertainment, film and music
brands using social media

 Clothing brands is the second
most popular category for social
media users to engage with (17%)

 16% of respondents said they are
interested in engaging with food
and drink brands, while 14% said
the same about sports brands

 Other industries mentioned in
the study are retail, leisure, travel,
technology and cosmetics

Reasons People Follow a
Company or Brand Online
 Receiving discounts and special
offers is the most popular reason
people follow a company on social
media sites (50% of respondents)

 48% of respondents said they
follow companies/brands to
receive news about them

 Loyalty is another major reason
with 39% saying they follow a
company because they are a
customer of that brand



Companies Using Social
Media for Engagement
 According to eMarketer, more
than half of UK companies (53%)
use social media to a certain
extend to engage audiences

 More than a quarter of
respondents (26%) said they
aggressively use social media to
engage customers

Goals for Social Media
 Branding was a top objective for
UK companies to use social media
marketing in 2010, according to
72% of respondents

 53% of UK companies said they use
social media to drive more traffic
to their web properties

 Lead generation (35%) and direct
online sales (19%) were other
social media objectives

Social Network Ad Spend
 £185 million will be spent
advertising on social networks this
year, taking 5% of total ad budgets

 By 2012, marketers will spend
£275 million on social network
advertising (6% of total budget)


EUROPE Internet Usage

European Online
Population Growing
 In 2010, 429 million people were
online in Europe, and this year
this number is expected to
increase to 457 million

 This growth is projected to
continue next year, as 483 million
people in Europe will become
Internet users

 The European online population is
expected to reach 509 million in
2013, 530 million in 2014 and 547
million by 2015

Internet Users in Select
European Countries
 According to eMarketer, half of the
entire European population were
Internet users in 2010

 Internet user penetration in Europe
will increase to 55% this year and
58% in 2012

 As the European online population
continues to grow in 2013, user
penetration will increase to 61%

 This trend will continue as Internet
user penetration reaches 63% in
2014 and 65% in 2015


EUROPE Internet Advertising

Marketers Plan to Spend
More Advertising Online
 In 2010, 94% of respondents said
they planned to increase their
online advertising spending

 This year, 93% of marketers plan
to spend more money advertising
online over previous years

Online Ad Spend in Europe
 In 2011, $18.7 billion will be spent
advertising online in Western
Europe, while Eastern Europeans
will spend $3.2 billion on the same

 Next year, marketers will spend
$20.9 billion (Western Europe) and
$3.7 billion (Eastern Europe)
advertising online

The Growth Continues
 In 2012, online ad spending growth
will reach its highest in the last few
years (17.5% in Eastern Europe and
12.1% in Western Europe)

 Online advertising is expected to
increase by 12.9% and 8.1% in
Eastern and Western Europe
respectively in 2013

 By 2014, online ad spend growth
will reach 20.5% in all of Europe


EUROPE Social Media

Social Network Users in
Europe Increasing
 This year, 100.1 million people in
Europe will become social
network users (half of all
European Internet users)

 In 2012, 54.5% of Internet users
in Europe will become social
network users (112.1 million)

 By 2013, 123.1 million people will
use social networks in Europe
(58.2% of the online population)

 Social network users will continue
to grow to 133.1 and 141.9
million in 2014 and 2015
respectively

Top 2 Social Networks
 Facebook appears to be the #1
social network in major European
countries (60-96% of respondents)

 In the Netherlands, Hyves is the #1
social network according to 82% of
respondents

 The 2nd most popular social
networks in Europe range between
several region-specific sites such as
TuentiAdictos, Copains d’avant,
Nasza-klasa.pl and studiVZ


EUROPE France

Internet Ad Spending
Share in France
 TV and press advertising still take
up a fair share of total advertising
dollars in France

 Internet advertising took a 12%
share of total advertising budgets
in 2010, surpassing outdoor and
cinema ad spend, as reported by
the Interactive Advertising Bureau
France (IAB France)

Internet Ad Spend Grows
to Become Second Highest
 Internet advertising spending in
France has consistently increased
over the years and the trend will
continue in 2012

 According to ZenithOptimedia,
$2,125 million was spent
advertising online in 2009 in France

 As the 2nd strongest channel in
terms of ad spend, Internet
advertising will see $2,778 million
in spending in 2012, surpassing
magazine, outdoor, newspaper,
radio and cinema ads


EUROPE France

Online Ad Spend Increases
 eMarketer has similar predictions
regarding online ad spending
increases in France

 According to an eMarketer study,
this year, €2.05 billion will be spent
advertising online, a 7% increase
over 2010

 Online ad spend will increase by
8% in 2013 (€2.42 billion)

 eMarketer predicts that by 2014,
€2.61 billion will be spent
advertising online in France

More Dollars Spent on
Paid Search and Display
 In 2010, $1,510 million was spent
on paid search advertising in
France, while $894 was allocated
toward online display ads

 This year, paid search ad spend
will reach $1,624 million, while
display ad spend will decrease
slightly to $870 million

 However, display advertising will
rise again in 2012 to $920 million

 Next year, social media and
mobile advertising will increase as
well to $162 and $118 million
respectively


EUROPE France

Social Network Users in
France Increases
 20.4 million people in France will
become social network users this
year, a 14.6% increase over 2010

 This equates to 51.2% of all
Internet users and 31.3% of the
country’s entire population

 In 2012, the social network
population will increase to 22.7
million (11.4% change and 55.9%
of all Internet users)

 By 2015, an estimated 43.9% of
the country’s entire population
(29.1 million people) will become
social network users

Most People Use Social
Networks on a Daily Basis
 Visiting social networking sites is
becoming a daily activity in France

 The majority of social network
users (68%) said they use social
sites several times or once a day

 23% of respondents said they use
social networks several times or at
least once a week

 Only 9% of users said they visit
social networks several times or
once a month


EUROPE Spain

Internet Advertising
Surpasses Newspaper Ad
Spend in Spain
 Internet advertising spending will
almost double over 3 years from
$916 million in 2009 to an
estimated $1,674 million in 2012

 Next year, online advertising will
surpass newspaper ad spend by
$122 million, making it the 2nd
strongest advertising channel

 Overall, more money will be spent
on Internet advertising over
newspaper, radio, magazine and
outdoor advertising

Online Ad Spend
Continues to Increase
 Similarly, eMarketer reports that
Internet advertising spending will
increase by 10% next year to reach
€0.88 billion

 According to the same study,
online ad spend will rise again by
8% in 2013 to reach €0.96 billion

 By 2014, €1.02 billion will be spent
on Internet advertising, a 7%
increase over the previous year


EUROPE Spain

Paid Search and Display
Ads Remain a Focus
 This year, marketers in Spain will
allocate $589 million toward paid
search advertising and $289
million for online display ads

 Next year, both numbers are
projected to increase to $672
million for paid search and $376
million for display ads

 Interestingly, mobile ad spending
will see a considerable increase
next year, from $78 million in
2011 to $121 million in 2012

 Social media advertising will also
see increase though incrementally

Industries Leveraging
Online Display Advertising
 14% of total display ad spend share
in Spain comes from travel and
tourism companies

 Companies within the telecom
industry take up a 13% share of
total online display ad spend, while
automotive companies consume a
12% share of the same

 Other industries using display ads
include educational businesses,
financial services and
public/private services


EUROPE Spain

Social Networking Grows
in Popularity in Spain
 This year, 15.5 million people in
Spain will use social networking
sites (33.1% of the population)

 In 2012, 2 million more people
will become social network users
and in 2013, another 2 million will
use social networking sites

 By 2015, almost half (46.9%) of
the population will use social
networks (22.6 million people)

Approximate Time Spent
on Social Network Sites
 26% of social network users in
Spain spent about 1-3 hours on
Badoo, while 37% spent the same
amount of time on Facebook in
September 2010

 23% spent 1-3 hours on hi5 and
MySpace each, while 35% spent 1-
3 hours on LinkedIn

 The majority of those surveyed in
this study (ranging between 32-
84% of respondents) spent under 1
hour on social networking sites in
general


EUROPE Netherlands

The Netherlands Has the
Most Daily Internet Users
in Western Europe
 According to eMarketer, 76% of
respondents in the Netherlands
said they use the Internet on a
daily basis, an increase over the
53% that stated the same in 2005

 This places the Netherlands as the
#1 country in Western Europe for
daily Internet usage with the UK
in 2nd place (66% of respondents)

Popular Online Activities
in the Netherlands
 As of September 2010, portals
were ranked as the #1 web
category among Internet users in
the Netherlands with an average of
433.7 minutes per visitor

 Instant messenger was another
popular online activity (410.8
minutes per visitor)

 Approximately 209 minutes were
spent on social networking sites by
a visitor during September 2010

 Email came in 4th place with an
average of 209 minutes per visitor


EUROPE Netherlands

Internet Ad Spend Will
Surpass TV Ad Spend
 Between 2005 and 2009, Internet
advertising in the Netherlands
drastically soared with an
increase of $954 million (from
$136 million to $1,090 million)

 Next year, online advertising
spending is expected to increase
again to $1,269 million surpassing
TV ad spending ($1,103 million)

 More money will be spent
advertising online over TV,
outdoor, radio and magazine ads

More Money Will Be Spent
on Search Advertising
 This year, €356.4 million will be
spent on search advertising, a 3.2%
change over 2010

 Meanwhile, €294.6 million will be
spent on other Internet/digital
advertising in the Netherlands

 In 2012, search advertising
revenues will rise by 6.5% to reach
€379.7 million

 By 2013, an estimated €416.3
million will be spent on search
advertising (9.6% increase)


EUROPE Netherlands

Social Media Activities in
the Netherlands
 Among the online population in
the Netherlands, 47% said they
are members of a social network

 Meanwhile, 30% of respondents
uploaded a video to YouTube
during a one-month period

 5% of Internet users said they
update their social networking
status or profile daily

Social Networks Used for
Customer Acquisition
 Companies are finding successful
use of business social networks to
get new customers

 Almost half (48%) of companies in
the Netherlands said they
successfully use business social
networks for customer acquisition

 Other European countries
mentioned in this study include UK
with 33% of companies using social
media to acquire customers,
France (33%) and Spain (50%)


ABOUT WSI
WSI leads the global Internet industry offering best of breed digital marketing solutions to
suit the needs of multiple industries. The company has the world’s largest Internet
Consultants’ network with its head office in Toronto, Canada. WSI Consultants have helped
thousands of businesses realize their online marketing potential. By using innovative
Internet technologies and advanced digital marketing strategies, businesses can have a WSI
Digital Marketing System tailored to their individual needs to elevate their Internet presence
and profitability to new levels. With the support and cooperation of its customers, franchise
network, employees, suppliers and charitable organizations, WSI aims to help make child
poverty history through its global outreach program (www.makechildpovertyhistory.org).
For more information about WSI’s offerings and business opportunities, please visit our
website at www.wsidigitalmarketing.com. The information herein is the property of RAM
Corporate (RAM). We are an independently owned and operated WSI franchised business.

The information herein is the property of Research and Management Corporate (RAM). Each
WSI franchise office is an independently owned and operated business.

©2011 RAM. All rights reserved.

Trends Report 2011 UK & Europe

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