IAB Europe's AdEx Benchmark is the definitive guide to the size and scale of European online advertising. Compiled by IHS Electronics and Media, AdEx Benchmark study collates advertising spend across twenty-six markets. It highlights the prominent position of online in the media landscape as a platform of choice for advertisers.

1. IAB Europe AdEx Benchmark 2013
The online advertising landscape in Europe

2. 2
ABOUT THE STUDY

3. 3
A meta-analysis of online ad spend in Europe
RATECARD
Campaigns x
Ratecard
GROSS
Revenue Billed
NET
Revenue Billed
No Agency commissions

4. 4
Submissions from 26 European countries
• Austria
• Belgium
• Bulgaria
• Czech Republic
• Croatia
• Denmark
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Netherlands
• Norway
• Poland
• Russia
• Romania
• Serbia
• Slovakia
• Slovenia
• Spain
• Sweden
• Switzerland
• Turkey
• UK

5. 5
BIG PICTURE & CONTEXT

6. 6
The value of online advertising in 2013
€27.3bn

7. 7
Eurozone economy is coming out of a double-dip recession
-8
-6
-4
-2
0
2
4
6
2004 Q1
2004 Q2
2004 Q3
2004 Q4
2005 Q1
2005 Q2
2005 Q3
2005 Q4
2006 Q1
2006 Q2
2006 Q3
2006 Q4
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
GDP Growth in Europe (%)
Eurozone GDP Growth France GDP Growth Italy GDP Growth Germany GDP Growth

8. 8
In a volatile market, online advertising is up double-digit
€ 24.4
€ 27.3
35
30
25
20
15
10
5
0
Total online advertising (€bn)
11.9% like-for-like
2012 2013

9. 9
Online ad spend in Europe increased 4-fold since 2006
€ 6.6
Total online advertising spend in Europe (€bn)*
€ 9.2
€ 14.5
€ 15.8
€ 18.8
€ 21.9
€ 24.4
€ 27.3
35
30
25
20
15
10
5
0
2006 2007 2008 2009 2010 2011 2012 2013
* Source: IAB Europe for 2011-2013; 2006-2011 retropolated based on IHS growth rates

10. 10
Online lifted overall ad spend as other media succumbed to economy and
structural challenges
-7.8%
2013: advertising year-on-year growth
-2.5%
-6.7%
10.8%
21.2%
11.5%
-2.5%
1.8%
-1.7%
25%
20%
15%
10%
5%
0%
-5%
-10%
WE CEE Total Europe
Total excl. online Online Total

11. 11
Due to weak 2013 for all other media, online strengthened its position as it
approaches TV
0.7
5.2
7.6
9.1
20.0
27.3
32.3
0 5 10 15 20 25 30 35
TV
Online
Newspapers
Magazines
OOH
Radio
Cinema
Ad spend by category in Europe in 2013 (€bn)

12. 12
Over half of all European ad spend comes from three markets
57.3%
Share of European online revenue by market
69.4%
77.9%
86.6%
56.9%
69.9%
78.2%
86.4%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Top 3 Top 5 Top 7 Top 10
2012 2013

13. 13
After a tough year, Spain hindered by economic crisis and Sweden increases in rank
6,383
4,253
3,343
Total online ad spend (€m)
1,454
1,503
1,199
859
911
618
589
7,381
4,676
3,494
1,843
1,703
1,312
955
901
709
628
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
UK Germany France Russia Italy Netherlands Sweden Spain Norway Denmark
2012 2013

14. 14
Growth drivers
Social media
Video
Rich media
Mobile internet penetration increasing across all of Europe
Programmatic and RTB come into the mainstream
E-commerce driving C&D growth

15. 15
Growth hurdles
Attracting brand spend online
Measurement
Mobile
Video inventory – still very limited
TV dominance in some European markets
Data literacy
Regulation

16. 16
Mix of CEE and WE markets above European average; Russia and Turkey only 2
markets above 20%
26.8%
24.3%
17.3%
16.2%
16.0%
15.7%
14.7%
13.4%
13.3%
13.0%
12.9%
11.9%
11.4%
11.1%
10.9%
10.7%
10.0%
9.8%
9.4%
6.9%
6.6%
6.2%
4.5%
4.3%
3.0%
-1.1%
-2.0%
30%
25%
20%
15%
10%
5%
0%
-5%
Online ad growth like-for-like (yoy)

17. 17
Slovakia
Hungary
Croatia
Bulgaria
Czech Republic
Denmark
Finland
Germany
France
Greece
Ireland
Italy
Netherlands
Norway
Poland
40%
35%
30%
25%
20%
15%
Romania
Russia
Serbia
Slovenia
Spain
Austria
Belgium
Sweden
Switzerland
Turkey
UK
10%
5%
0%
-5%
-10%
- 20 40 60 80 100 120
Online ad market growth
Online ad spend per capita (€)
Bubble size: market value in €m

18. 18
Uniform growth patterns in 2013
50%
40%
30%
20%
10%
0%
-10%
-20%
Online advertising growth year-on-year (%)
0 5 10 15 20 25 30
2012 2013

19. 19
FORMATS

20. 20
Acceleration in Display growth, Display and Search drove online ad spend in 2013
9.1%
Year-on-year growth (%)
6.3%
15.5%
11.5%
14.9%
3.6%
13.0%
11.9%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Display Classifieds & Directories Paid-for-search Total
2012 2013

21. 21
Search and Display grow their share at the expense of Classifieds & Directories
47.5% 48.2%
Format shares of total online
43.8%
32.2% 31.0% 32.7% 32.4% 33.8%
18.3% 14.9%
18.9%
19.8% 20.7% 19.6% 18.5% 16.8%
34.1% 36.6% 36.6%
47.3% 48.0% 47.1% 48.8% 49.2%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2006 2007 2008 2009 2010 2011 2012 2013
Display Classifieds & Directories Paid-for-search Other

22. 22
A renaissance of Display advertising as even mature markets post high growth
32.3%
28.3%
28.0%
25.9%
24.9%
24.7%
18.7%
15.9%
14.9%
13.4%
13.4%
12.4%
12.3%
11.4%
9.3%
9.3%
8.7%
8.1%
5.2%
4.9%
4.8%
2.7%
-0.2%
-0.7%
-2.0%
-3.1%
-5.4%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Display advertising growth year-on-year (%)

23. 23
Online video is now a significant part of Display advertising
29.0%
20.5%
20.5%
19.1%
16.2%
16.2%
15.3%
15.2%
15.0%
14.4%
13.5%
13.1%
12.7%
11.7%
11.0%
10.3%
8.8%
8.1%
5.4%
4.5%
2.9%
2.9%
2.2%
35%
30%
25%
20%
15%
10%
5%
0%
Video share of Display

24. 24
Video ad spend mirrors total online ad spend ranking
356.6
153.0
139.0
132.3
85.6
80.7
43.9
34.8
29.4
28.2
25.1
16.8
12.7
10.9
9.6
9.1
8.8
4.0
3.3
1.7
0.8
400
350
300
250
200
150
100
50
0
Online video ad spend (€m)

25. 25
Mobile now has a double-digit share of online display
25.1%
16.4%
13.5%
11.5%
9.5%
9.2%
9.2%
9.0%
8.7%
6.7%
5.4%
5.0%
4.9%
4.6%
3.4%
3.1%
2.8%
2.2%
2.1%
1.4%
1.2%
0.7%
30%
25%
20%
15%
10%
5%
0%
Mobile display as a share of total Display
2012 2013

26. 26
This is more evident…
32.3%
28.3%
25.9%
24.7%
18.7%
15.9%
13.4%
13.4%
12.4%
11.4%
9.3%
9.3%
5.2%
4.8%
2.7%
-0.2%
-2.0%
-3.1%
-5.4%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Display year-on-year growth (%)
Display including mobile

27. 27
…when we remove Mobile from Display
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Display year-on-year growth (%)
Display including mobile Display without mobile

28. 28
Mobile is most important growth engine for online display
European
Display with
mobile: +14.9%
European
Display without
mobile: +1.1%

29. 29
Classifieds & Directories struggled in 2013 with 11 countries experiencing decline
30.3%
26.1%
24.8%
20.0%
11.5%
9.4%
8.4%
6.8%
5.6%
4.9%
4.3%
3.6%
3.6%
3.3%
2.0%
-0.2%
-0.6%
-1.7%
-1.7%
-2.0%
-2.1%
-3.4%
-7.3%
-16.2%
-18.7%
-20.5%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Classifieds & Directories year-on-year growth (%)

30. 30
Continued growth in Paid-for-search shows the success of the format
34.4%
26.6%
26.1%
22.3%
20.9%
20.8%
19.0%
18.9%
18.5%
18.2%
15.0%
14.3%
13.6%
13.5%
13.0%
12.0%
9.7%
6.0%
6.0%
5.5%
5.2%
4.7%
3.7%
3.7%
1.1%
-2.0%
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
Paid-for-search year-on-year growth (%)

31. 31
Like in Display, Mobile is now a significant driver of Paid-for-search
25.3%
Mobile search as a share of Paid-for-search (%)
20.0%
16.8%
12.6% 12.4%
9.8%
9.0%
4.5%
2.4%
30%
25%
20%
15%
10%
5%
0%
Ireland Austria UK Europe Sweden Germany France Hungary Spain

32. You can download the full study here
Contact:
Alison Fennah, IAB Europe – fennah@iabeurope.eu
Daniel Knapp, IHS – daniel.knapp@ihs.com
@IABEurope
IAB Europe
www.iabeurope.eu