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Digital Advertising in Europe
Daniel Knapp
About the study
Data for 27 countries in EuropeAustriaBelarus BelgiumBulgariaCzech RepublicCroatiaDenmarkFinlandFranceGermanyGreeceHungaryIrelandItaly
• Netherlands• Norway• Poland• Russia• Romania• Serbia• Slovakia• Slovenia• Spain• Sweden• Switzerland• Turkey• UK
Big picture
€41.3bn net addition in 12 years, market doubled in last 5 years
6.79.3
14.7 16.019.1
22.224.8
29.032.6
37.742.5
48.0
05
101520253035404550
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total digital ad spend: historical perspective€41.3 bn
Digital offsets losses of traditional media, establishing a new all-time advertising market high
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Traditional vs Digital Advertising (€bn)
Other Media Online€111.6bn €117.2bn
Peak ‘traditional’ media
New market high (+€5.5bn)
Recessionary market low
Historical market high Flat market Online growth
offsets decline
”Plus ça change, plus c'est la même chose”: consistency in growth rates over past six years despite fundamental market restructure
39.0%
58.6%
8.9%
18.6% 16.5%11.5% 11.9% 11.6% 13.1% 12.2% 13.2%
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Historical digital advertising market growth
Maximum 1.7 ppt variation in growth over the past 6 years
Markets
Top 5 ranking stable, Sweden moves up, UK maintains lead
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
BelgiumSpain
SwitzerlandNetherlands
SwedenItaly
RussiaFrance
GermanyUK
Top 10 Markets Ranked
2017 2016
UK is 2.4x Germany
UK as big as next 3 markets combined
Growth driven by CEE, Nordics, UK33
.9%
23.7
%
21.9
%
18.7
%
18.4
%
18.4
%
16.7
%
16.6
%
16.1
%
15.6
%
14.3
%
13.2
%
12.5
%
12.3
%
11.7
%
11.2
%
10.8
%
10.7
%
10.6
%
10.4
%
10.3
%
9.9%
9.7%
9.6%
8.8%
6.5%
4.4%
0.5%
0%5%
10%15%20%25%30%35%40%
Bela
rus
Serb
ia
Russ
ia
Czec
h Re
publ
ic
Slov
enia
Swed
en
Hun
gary
Nor
way
Rom
ania
Turk
ey UK
Euro
pean
Ave
rage
Switz
erla
nd
Italy
Pola
nd
Germ
any
Fran
ce
Croa
tia
Finl
and
Bulg
aria
Irela
nd
Spai
n
Denm
ark
Aust
ria
Net
herla
nds
Belg
ium
Slov
akia
Gree
ce
Digital Advertising Growth 2017 (YoY)
A look back at 2016...
Bulgaria
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
ItalyNetherlands
Norway
Poland
Romania
Russia
Serbia
Slovenia
Spain
Austria
Belgium
Sweden
SwitzerlandTurkey UK
...reveals a 3-tiered Europe in 2017
Year
-on-
year
gro
wth
online ad spend per capita European average lines
Formats
€5.5bn added in total
16,800 19,311
6,4036,712
19,16921,929
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
2016 2017
Digital Advertising Spend by Format (€m)*
Display Classifieds & Directories Search
2,511
309
2,7…
0
5,000
10,000
15,000
20,000
25,000
Display Classifieds &Directories
Search
Net additions 2017 (€m)
2016 2017 net additions
+14.9%
+4.8%
+14.4%
40% of digital ad spend is on mobile
34.3% 42.0%
65.7% 58.0%
0%10%20%30%40%50%60%70%80%90%
100%
2016 2017
Display
Mobile Desktop
34.2% 39.3%
65.8% 60.7%
0%10%20%30%40%50%60%70%80%90%
100%
2016 2017
Search
Mobile Desktop
Expansion of video drives share gains of total display
Video9.2%
Non-Video Display30.4%
Classifieds & Directories
15.1%
Search45.2%
2016
Video Non-Video Display Classifieds & Directories Search
Video11.0%
Non-Video Display29.3%
Classifieds & Directories
14.0%
Search45.7%
2017
Video Non-Video Display Classifieds & Directories Search
€42.5bn €48.0bnTotal
Display: 39.6%*
Total Display: 40.3%
Video reaches 27% of display, growing 4x non-video display
12.9 14.0
3.95.3
0.0
5.0
10.0
15.0
20.0
25.0
2016 2017
Display by Format (€bn)
Non-Video Display Video
76.7% 72.7%
23.3% 27.3%
0%
20%
40%
60%
80%
100%
2016 2017
Share of Display Total
Non-Video Display Video
8.9%
34.8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Non-VideoDisplay
Video
2017 Growth
Out-Stream (+73.4% YoY) overtakes In-Stream Video (+6.9% YoY)
2016: Share of Digital Video Ad Spend 2017: Share of Digital Video Ad Spend
*incl. in-feed
Video is more than ¼ of digital display advertising38
.5%
35.8
%
32.3
%
31.1
%
27.9
%
27.7
%
27.3
%
26.6
%
25.5
%
24.7
%
24.6
%
24.1
%
23.9
%
23.1
%
22.6
%
21.8
%
21.7
%
19.4
%
18.4
%
17.4
%
16.2
%
14.9
%
13.3
%
12.8
%
9.1%
8.9%
7.1%
3.6%
0%5%
10%15%20%25%30%35%40%45%
UK
Italy
Irela
nd
Switz
erla
nd
Fran
ce
Croa
tia
Euro
pean
Ave
rage
Bulg
aria
Slov
akia
Pola
nd
Czec
h Re
publ
ic
Net
herla
nds
Belg
ium
Spai
n
Swed
en
Germ
any
Turk
ey
Gree
ce
Bela
rus
Aust
ria
Serb
ia
Slov
enia
Finl
and
Denm
ark
Nor
way
Russ
ia
Hun
gary
Rom
ania
Video Share of Digital Display 2017
Social added 7ppt to its share of display in 2017
34.8%
65.2%
2016
Social Other Display
41.8%
58.2%
2017
Social Other Display
The trinity of SoMoVi: concentration of growth
Contact:Alison Fennah – [email protected]
Marie-Clare Puffett – [email protected] Knapp – [email protected]
Connect with us:
@IABEurope
IAB Europe
www.iabeurope.eu www.technology.ihs.com
@IHS4Tech