european interactive advertising association ‘european media landscape and future trends’ alison...

European Interactive Advertising Association

‘European Media Landscape and Future Trends’

Alison FennahExecutive Director

2

Presentation agenda

1. Introduction

EIAA Objectives

About the EIAA

Background – Global Trends, Advertising Expenditure

2. European Internet Usage

Research Objective - Mediascope Europe

Methodology & Sample

How Often are Europeans Online

How Long Europeans Spend Online

Media Meshing

Broadband Penetration

Web Activities & Web 2.0

3

Presentation Agenda

3. Online Shoppers

Growing Conversion Rates

Number of Items Bought Online and Amount of Money Spent

European Bargain Hunters

Online Shoppers Internet Usage

4. Wireless Users Make the Most of the Net…

Wireless Users

Wireless Users - Access to technology

Mobile Internet Users

5. Key Findings

1. INTRODUCTION

5

EIAA Objectives

Champion and improve the understanding of online advertising as a medium

Promote the efficiency of online advertising as part of the ‘media mix’

Think regionally, benefit regionally and at local level

Increase the total value of investment into online advertising

6

EIAA – Who?

7

Background

EIAA has made significant investment in research, particularly in the areas of media consumption and advertising efficiency, key projects include:

Mediascope EuropeMarketers Internet Ad BarometerCase Study LibraryAd Formats StudyOnline Ad Effectiveness

As part of this commitment to research, the EIAA has for the past four years conducted a large scale study of media consumption habits in Europe

enabling it to track changes in media consumption habits in order to illustrate how internet usage as a share of media consumption is changing and therefore how media planners should spend their client’s ad spend

8

World economic order and overalladvertising expenditure

The economic order is set to change

USA currently have the strongest economyBy 2050 China are set to overtake the USAIndia, Japan, Brazil and Russia’s economies are predicted to flourish

Population sizes and business costs are key factors driving economic growth

Technology revolution also driving manufacturing and service sectors

India (+33%), Russia (+21%) and China (+20%) have seen a large growth in internet penetration and these are the countries which are set to grow economically

As with economic order, advertising expenditure is set to change

What do advertisers get from online?

9

Population sizes and business costs are key factors driving economic growth…

Country Projected Population (2025) Current Population (2005) Change

PR China 1480m 1294m 14%

India 1330m 1049m 27%

United States 333m 294m 13%

Indonesia 275m 234m 18%

Pakistan 269m 151m 78%

Nigeria 238m 33m 79%

Brazil 217m 182m 19%

Bangladesh 180m 138m 30%

Ethiopia 136m 67m 103%

Russia 131m 145m -9%

Country Projected Population (2025) Current Population (2005) Change

PR China 1480m 1294m 14%

India 1330m 1049m 27%

United States 333m 294m 13%

Indonesia 275m 234m 18%

Pakistan 269m 151m 78%

Nigeria 238m 33m 79%

Brazil 217m 182m 19%

Bangladesh 180m 138m 30%

Ethiopia 136m 67m 103%

Russia 131m 145m -9%

** The cost of manufacturing labour in Brazil is approximately a 7th of the cost of that in the USA** The cost of manufacturing labour in Brazil is approximately a 7th of the cost of that in the USA

Source: Above - United Nations Fund for Population Activities ** US Department of Labour, Bureau of Labour Statistics

10

… technology revolution also driving growth

33%

21% 20%18%

16%13%

11%8%

4% 4% 4% 3% 3% 2% 1%

India

Russi

a

China

Mex

ico

Brazil

Italy

Canad

a

South

Kore

a

Franc

e

Japan

Spain

Ger

man

y

Nethe

rlands

USA UK

% growth in internet audiences Jan 2006 vs. Jan 2007% growth in internet audiences Jan 2006 vs. Jan 2007Countries which are set to grow economically are seeing high growth rates in internet penetration

Countries which are set to grow economically are seeing high growth rates in internet penetration

Source: ComScore Networks, March 2007

11

How Is The Mix Changing?

-30 0 30 60

Online

Cinema

Radio

TV

Outdoor e.g .billboard

Other direct marketing

Newspaper

Magazine

Percentage Of Respondents

Decreasing

Increasing

Q 61. Which media is your usage increasing/decreasing with?

The EIAA Marketers’ Ad Barometer shows that the online budget is increasing significantly compared to other media

The EIAA Marketers’ Ad Barometer shows that the online budget is increasing significantly compared to other media

12

74% of all respondents regard the internet as a vital part of their advertising strategy

78% thought it enabled them to reach specific groups difficult to reach in other ways

80% of respondents feel that increasing broadband penetration is making the Internet more attractive

The language and technology used in online advertising was no longer considered to be an issue for 64% of advertisers

Advertiser perceptions

2. EUROPEAN INTERNET USAGE

14

OVERALL PROJECT OBJECTIVEOVERALL PROJECT OBJECTIVE

The broad aim of this study is to measure and track changes in media consumption patterns by various demographic segments and nationalities.

This work will show when, why and how often people are using different media – in particular usage of the Internet for content, communication and commerce

The broad aim of this study is to measure and track changes in media consumption patterns by various demographic segments and nationalities.

This work will show when, why and how often people are using different media – in particular usage of the Internet for content, communication and commerce

Mediascope Europe

15

Within each territory quotas were set to ensure our sample was representative of each market.

Quotas were applied on:age, gender, education and regional distribution within countries

Within each territory quotas were set to ensure our sample was representative of each market.

Quotas were applied on:age, gender, education and regional distribution within countries

TOTAL SAMPLETOTAL SAMPLE

ScandinaviaSweden - 334Norway - 334Denmark - 333

Germany – 1,008

Italy – 1,008

Spain – 1,002

France – 1,002

UK – 1,015

7,036 interviews across 10 European countries7,036 interviews across 10 European countries


Belgium – 500

Netherlands – 500

16


7,036 Computer Aided Telephone Interviews (CATi) were conducted by Synovate on behalf of SPA and the EIAA in 9 EU countries and Norway

A sample size of 7036 provides accurate data to ± 1.1 – 0.8% at the 95% confidence level

Fieldwork took place in all territories between 4th-25th September 2006

Interview length ranged from between 25-30 minutes

The application of quotas ensured that representative samples were achieved in each country

quotas on age, gender, education and regional distribution

Results at the total level were weighted to take into account the different country’s population sizes. Using 2005 data from the UN the following weighting matrix was developed

Country / Territory UK France Germany Italy Spain Belgium Netherlands

Sweden

Norway

Denmark Total

Total weight 17.1% 17.3% 23.6% 16.7% 12.4% 3.0% 4.6% 2.6% 1.3% 1.5% 100%

Country / Territory UK France Germany Italy Spain Belgium Netherlands

Sweden

Norway

Denmark Total

Total weight 17.1% 17.3% 23.6% 16.7% 12.4% 3.0% 4.6% 2.6% 1.3% 1.5% 100%

17

Internet usage

European weekly internet usage has grown by 10% year-on-year with weekday growth of 13%

Norway leads with 81% of population online in a typical 7 day week

Spain shows the largest growth overall (up 27%)

After 10am each day, the internet is the second most used medium

Personal, leisure and recreational use has pushed weekend internet usage up 17%

35-54 year olds key to driving weekend internet usage

18

European weekly usage up 10% year-on-year Q1a In a typical 7 day week, that is Monday to Sunday, can you tell me if you…?

[Base: All Respondents in Europe] [Base: All respondents in Europe]

EU & Norway 10%

16-24 years 6%

25-34 years 10%

35-54 years 11%

Men 11%

Women 12%

EU & Norway 10%

16-24 years 6%

25-34 years 10%

35-54 years 11%

Men 11%

Women 12%

81

77

76

73

63

61

56

53

48

33

European Average = 54

European Average

Norway 8%

Netherlands 18%

Sweden 9%

Denmark 4%

UK 13%

Belgium 20%

France 17%

Germany

Spain 23%

Italy

Norway 8%

Netherlands 18%

Sweden 9%

Denmark 4%

UK 13%

Belgium 20%

France 17%

Germany

Spain 23%

Italy

54

84

75

61

61

48

Use the InternetUse the InternetChange from2005

Change from2005

19

76%91% 96%

85% 83%71%

Average 16-24 25-34 35-54 Men Women

Mature market - Sweden 35-54 year olds and women are driving internet usage

20062006

Q1a In a typical 7 day week, that is Monday to Sunday, can you tell me if you use the internet?

[Base: All Sweden Respondents]

20

Internet is second most used medium for 20 hours per day

[Base: All Respondents in EU & Norway using each type of media]

Q1b. What times of the day do you typically…during week?

58%

65%

29%

41%

74%

59%

52%49%

29%

13%

45%48%

19%

11%

39%

11%

4%

22%

11%

23%

0

10

20

30

40

50

60

70

80

'When you wake up' (6am - 10am) 'During the Day' (10am - 5.30pm) 'During the Evening' (5.30pm - 9pm) 'During the Night' (9pm - 6am)

Watch TV Read Newspapers Read Magazines Listen to Radio Use the Internet

06:00

10:00

to

10:00

17:30

to

17:30

21:00

to

21:00

06:00

to

21

Personal usage drives weekend internet use up 17% Q2a/3a. On a typical weekend, can you tell me if you…?

[Base: All Respondents in Europe][Base: All Respondents in Europe]

EU & Norway

17%

16-24 years 9%

25-34 years 22%

35-54 years 42%

Men 20%

Women 20%

EU & Norway

17%

16-24 years 9%

25-34 years 22%

35-54 years 42%

Men 20%

Women 20%

66

65

64

62

51

49

48

43

35

17

European Average =

42%

European Average

Netherlands 38%

Sweden 16%

Norway 14%

Denmark 7%

France 21%

Belgium 23%

UK 14%

Germany 10%

Spain 46%

Italy 6%

Netherlands 38%

Sweden 16%

Norway 14%

Denmark 7%

France 21%

Belgium 23%

UK 14%

Germany 10%

Spain 46%

Italy 6%

42

70

60

54

49

36

Sat Sun

59% 58%

61% 59%

58% 58%

59% 57%

48% 42%

46% 38%

44% 39%

38% 35%

32% 28%

15% 11%

Sat Sun

59% 58%

61% 59%

58% 58%

59% 57%

48% 42%

46% 38%

44% 39%

38% 35%

32% 28%

15% 11%

Sat Sun

38% 34%

62% 59%

54% 48%

43% 38%

45% 40%

32% 29%

Sat Sun

38% 34%

62% 59%

54% 48%

43% 38%

45% 40%

32% 29%

Use the InternetUse the Internet

Change from2005

Change from2005

22

How often internet users are online

Europeans now use the internet on average 5.4 days per week, up 4% year-on-year

Scandinavians and French are online most frequently

Half of all male internet users are online everyday of the week

TV usage is stagnant across Europe while internet usage continues to increase

23

By DemographicBy Demographic

Q4. In a typical seven day week, on how many days do you use the internet?

[Base: All European internet users]

Europeans are online more than 5 days per week

Change from

2005

EU & Norway

4%

16-24 years 4%

25-34 years 2%

35-54 years 6%

Men 4%

Women 4%

Change from

2005

EU & Norway

4%

16-24 years 4%

25-34 years 2%

35-54 years 6%

Men 4%

Women 4%

By CountryBy Country

6.1

5.9

5.8

5.7

5.7

5.6

5.4

5.3

5

4.8

European Average

= 5.4

European Average

Change

from 2005

Denmark 9%

Sweden 7%

France 2%

Norway 8%

Spain 8%

Netherlands 10%

Belgium

UK 2%

Germany 4%

Italy 7%

Change

from 2005

Denmark 9%

Sweden 7%

France 2%

Norway 8%

Spain 8%

Netherlands 10%

Belgium

UK 2%

Germany 4%

Italy 7%

5.4

5.7

5.5

5.3

5.6

5.1

24

40%44%

41%38%

46%

33%

45%

53%

47%42%

51%

38%

0

20

40

60

80

100

EU & Norway (n=4007) 16-24 years (n=792) 25-34 years (n=1686) 35-54 years (n=1610) Men (n=2129) Women (n=1878)

2004 2006

Almost half use the internet everyday


Per

cen

t

Q4. In a typical seven day week, on how many days do you use the internet?

25

Internet still growing while TV stagnates Q4. In a typical seven day week, on average how many days do you use TV/internet?

TVTV InternetInternet

6.0 days6.2 days 6.2 days

82%86% 86%

0

1

2

3

4

5

6

7

2004 2005 2006

Nu

mb

er o

f d

ays

per

wee

k

0

20

40

60

80

100

% u

sing

TV

betw

een 5 an

d 7 d

ays per w

eek

[Base: All TV viewers in EU + Norway]

4.9 days5.2 days

5.4 days

61%

69%72%

0

1

2

3

4

5

6

7

2004 2005 2006

Nu

mb

er o

f d

ays

per

wee

k

0

20

40

60

80

100 % u

sing

Intern

et betw

een 5 an

d 7 d

ays per w

eek

[Base: All internet users in EU + Norway]

26

How long Europeans spend online

European internet users now spend on average 11 hours and 20 minutes online each week

Massive Italian growth in time spent online

Danish internet users spend the most time online and have the highest number of heavy users

27

Europeans spend over 11 Hours online per week


Q5ai – Q5aiii. In a typical seven day week, approximately how many hours do you tend to spend using the internet?

Average Hours Spent Using the Internet in a Typical WeekAverage Hours Spent Using the Internet in a Typical Week

12.6 12.1 12.1 1211.4 11.3 11.3 11 10.9

10.4 10.3

6

8

10

12

14

16

18

20

Denmark Spain Italy France Sweden EuropeanAverage

UK Belgium Netherlands Norway Germany

Ho

urs

2005 Score

10.5 11.1 8.4 12.6 10.2 10.2 10.7 11.7 8.9 8.7 9.0

% Change

20% 9% 44% 12% 11% 6% 22% 20% 14%

2005 Score

10.5 11.1 8.4 12.6 10.2 10.2 10.7 11.7 8.9 8.7 9.0

% Change

20% 9% 44% 12% 11% 6% 22% 20% 14%

28

Time spent using the internet growing at the expense of other media

14.513.0

8.8

5.34.5

15.4 14.9

10.2

5.34.2

15.3 14.8

11.3

5.24.0

Watch television Listen to the Radio Use the Internet Read Newspapers Read Magazines

2004 2005 2006

Q5a In a typical week how long do you spend watching television/reading newspapers/reading magazines/listening to the radio/using the internet?

Av

era

ge

nu

mb

er

of

ho

urs

pe

r w

ee

k +6%+14%

+28%

-2%+11%

[Base: All European users of each media]

29

Proportion of ‘heavy’ internet users spending more than 16 hours per week onlineProportion of ‘heavy’ internet users spending more than 16 hours per week online

27% of European internet users spend more than 16 hours online per week Q5ai – Q5aiii. In a typical seven day week, approximately how many hours do you tend to spend using the internet?

2005 Score

24% 24% 32% 15% 22% 25% 24% 26% 18% 18% 18%

% Change

33% 25% 87% 23% 4% 8% 33% 28% 28%

2005 Score

24% 24% 32% 15% 22% 25% 24% 26% 18% 18% 18%

% Change

33% 25% 87% 23% 4% 8% 33% 28% 28%

32%30% 30%

28% 27% 26% 26% 25% 24% 23% 23%

0

10

20

30

40

50

Denmark Spain France Italy EuropeanAverage

UK Sweden Belgium Netherlands Germany Norway

%


30

16-24 year-olds show largest increase in hours spent online in Sweden

2006


2005Score

10.2 13 11.5 9.9 11.2 9.1

%

Change+12% +47% +8% +9% +23% +1%

11.4

19.2

12.410.8

13.7

9.2

Sweden 16-24 25-34 35-54 Men Women

[Base: All Swedish internet users]

31

Media meshing

European TV viewing suffers from significant interference from a high degree of simultaneous print media usage

result: clouds advertising messages

Internet is an attention grabbing medium and suffers from virtually no print crossover across Europe but has a slightly higher degree of crossover with radio and TV

The highest levels of internet media meshing are seen amongst 16-24 year olds

32

When Mainly Using the InternetWhen Mainly Using the InternetWhen Mainly Watching TVWhen Mainly Watching TV

Lower levels of media meshing when mainly using the internet Q5b-f. When you’re mainly watching TV, reading a newspaper, reading a magazine, listening to radio, using the internet, which other media do you sometimes use?

21%3%

0%

29%

TV

INTERNET

NEWSPAPERRADIO

MAGAZINE

15%

25%5%

21%

MAGAZINE TV

NEWSPAPER

RADIO

INTERNET23%

26%

NONE: 48%NONE: 53%

33

When Mainly Using the InternetWhen Mainly Using the Internet

16-24 year olds drive media meshing

INTERNET

3%

5%

Q5b-f. When you’re mainly watching TV, reading a newspaper, reading a magazine, listening to radio, using the internet, which other media do you sometimes use?

NONE: 37%

35%

31%

MAGAZINE TV

NEWSPAPERRADIO

34

Broadband changes how people live their lives

Broadband penetration is up 14% across Europe since 2005 Mediascope study leading to major changes in the way Europeans communicate and spend their leisure time

More than 70% of European internet use is personal or for leisure purposesthe French and Belgians have the lowest level of work-related internet use across the Union

European internet users view the internet as time-saving and as putting you ahead of the game more than other more traditional media

35

Broadband penetration up 14%

EuropeEurope

56%

66%

75%

0

20

40

60

80

100

2004 2005 2006

[Base: All internet users]

%

2004-2005 2005-2006

Year on year change 18% 14%

QC3. Thinking about the place where you use the Internet the most, do you have a broadband connection?

36

Broadband penetration up 14% across Europe QC3. Thinking about the place where you use the Internet the most, do you have a broadband connection?


France

Norway

UK

Sweden

Denmark

Belgium

Europe

Netherlands

Spain

Italy

Germany

France

Norway

UK

Sweden

Denmark

Belgium

Europe

Netherlands

Spain

Italy

Germany

2006

2006

87

85

84

84

84

83

75

74

71

68

60

+7%

+4%

+20%

+8%

+11%

+8%

+14%

+23%

+3%

+8%

+18%

+7%

+4%

+20%

+8%

+11%

+8%

+14%

+23%

+3%

+8%

+18%

Year-on-year changeYear-on-year change

37

35

24 23 23 2320 18 18 17 16 16 15

11

68

0

10

20

30

40

50

60

70

80

Watc

h TV

Read b

ooks

Read n

ewspap

ers

Read m

agaz

ines

Talk

on the p

hone

Send te

xt m

essag

e

Liste

n to ra

dio

Buy musi

c

Outdoor a

ctiv

ities

Play s

ports/e

xerc

ise

Liste

n to m

usic

Spend ti

me

with fr

iends/f

amily

Work

(Net

) Do S

ometh

ing le

ss o

ften

Internet impacts how Europeans spend leisure time

Q20b Which of the following do you less often (not through the internet) as a result of using the internet?

[Base: All European Internet users]

%

Particularly true of 18-24 year olds = 39%

Particularly true of 18-24 year olds = 39%

38

Internet seen as a personal leisure tool across Europe Q12. What proportion of typical weekly internet usage is personal and what percentage is work related?

24 25 26 27 28 28 2835 35 37 39

76 75 74 73 72 72 7265 65 63 61

0

20

40

60

80

100

France Belgium UK Germany EuropeanAverage

Italy Netherlands Spain Sweden Denmark Norway

Work-related Personal

[Base: All Internet users]

%

39

Internet puts users ahead of the game

Q5g. Which one type of media do you think fits best with this statement?

[Base: All Respondents in Europe using all media types]

10 11

2118

86 8

1418

35

2 3 2 388

5 59 10

7167

45 47

32

0

20

40

60

80

100

Provides what you wantquickly/saves time

Has what you want whenyou want it

Puts you in control Keeps you ahead of game Good for when brain mostactive

TV Newspapers Magazines Radio Internet

EuropeEurope

40

Web 2.0 driving next wave of internet usage

From easy-to-use services through to participation and personalisation

These activities look set to drive the next wave of internet growth

Forum, VoIP and Instant Messaging all saw significant increases since 2005 as the internet becomes a more ingrained point of Europeans’ lifestyles

Social Networking sites such as MySpace and Bebo included in Mediascope for the first time are being used at least once a month by 23% of online Europeans

Significant growth is also observed in top website genres including email, technology sites, news and local information

41

2006 Score

2005 Score

Trend Year-on-year

trend

Making telephone calls via the internet

15% 10% 50%

TV & Film downloads 17% 13% 31%

Forums 26% 20% 30%

Listening to the radio 30% 24% 25%

2006 Score

2005 Score

Trend Year-on-year

trend

Making telephone calls via the internet

15% 10% 50%

TV & Film downloads 17% 13% 31%

Forums 26% 20% 30%

Listening to the radio 30% 24% 25%

Interactive & Web 2.0 Sites Drive UsageQ7b. Which of the following types of web activities do you do at least once a month?

Social Networking websites used at least once a month by 23% of online EuropeansSocial Networking websites used at least once a month by 23% of online Europeans


Top Four web activities with highest growth rates across all of Europe

Top Four web activities with highest growth rates across all of Europe

42

84%76%

57% 52% 49% 47% 45% 41% 42%35%

88% 85%

63%53% 49% 50% 51% 47%

38% 36%

0

10

20

30

40

50

60

70

80

90

100

Searchengines

Email News Travel Holidays Banking andFinance

Localinformation

Music Shopping Auction

2005 2006

Usage of email, news, local information and music sites grows


Q7a. Which of the following types of websites do you visit at least once a month?

Top Website Genres (%)Top Website Genres (%)

43

33% 32% 31% 31% 29% 27% 26%21% 20% 19%

38% 40% 38%34%

28% 29%32%

23% 22% 22%

0

5

10

15

20

25

30

35

40

45

Sports Technology PriceComparison

Films Cars ormotoring

Jobs Health Property Mobilephones

Family & kids

2005 2006

Technology, price comparison & health websites show significant growth in usage



Next 10 (%)Next 10 (%)

3. ONLINE SHOPPERS

45

Online Shoppers – Growing Conversion Rates

78% of all European internet users shop online

European online shoppers are now buying more from their browsing on the internet

Concert/Festival tickets are currently seeing the highest conversion rate across Europe (75%)

Travel tickets (72%), books (71%) and clothes (70%) are also enjoying high conversion rates

Increasing consumer confidence in specific retail sectors

Mobile phones have seen the biggest growth in conversion rates year-on-year (+23%)

Music downloads (+16%), car accessories (+15%) and home furnishings (+14%) also have significant growth rates

Travel Tickets, holidays and books are most bought products online

46

78% of European internet users have bought products/services online

93%89%

84% 84% 83% 82%

75%

68% 67%

54%

Norway UK

Nethe

rlands

Denm

ark

Germ

any

Sweden

Franc

e

Spain

Belgi

um

Italy

% o

f in

tern

et

us

ers

wh

o s

ho

p o

nlin

e

[Base: All Online Shoppers ]

European Average: 78%

Q16. Have you ever bought online any of the following products/services?

47

Increasing confidence in purchasing mobile phones and music downloads online across Europe…

38%

52%47%

40%

54%

75%

58%55%

50%

61%

31%

45%41%

35%

48%

67%

52% 50%46%

56%

23%

16% 15% 14% 13% 12% 12% 10% 9% 9%

Mob

ile P

hones

Mus

ic D

ownlo

ads

Car A

cces

sorie

s

Home

Furni

shin

gs

Holid

ays

Conce

rt/Fes

tival

Tick

ets

Food/G

roce

ry S

hopp

ing

Compute

r Gam

es

Insu

rance

Car H

ire

2006 2005 Year-on-Year Growth

Top 10 Products With Biggest Growth in Conversion Rates Year-on-YearTop 10 Products With Biggest Growth in Conversion Rates Year-on-Year

Q15/Q16. Have you ever researched/bought online any of the following products/services?


48

Travel tickets, holidays and books are most bought products online across Europe

Product/service Bought online Researched online

Researched online but sometimes bought offline

Travel tickets 52% 72% 39%

Holidays 38% 70% 38%

Books 37% 53% 33%

Concert/Festival tickets 37% 49% 28%

Clothes 31% 45% 28%

Electrical Goods 30% 52% 39%

CDs 25% 41% 27%

DVDs 22% 32% 21%

Theatre/Cinema tickets 21% 36% 24%

Music Downloads 20% 38% 19%

Insurance 14% 28% 16%

Toys 13% 20% 14%


Q15/Q16/Q17. Have you ever researched/bought online or researched & bought off line any of the following products/services?

Top 12 Products Bought Online in EuropeTop 12 Products Bought Online in Europe

49

Out of the top five products bought online four of them were more popular with female online shoppers

52%

38% 36%34%

26%

52%

39% 39% 40%38%

Travel Tickets Holidays Books Concert/FestivalTickets

Clothes

Men Women

Q15/Q16/Q17. Have you ever researched/bought online or researched & bought off line any of the following products/services?

Electrical Goods are much more popular with male online shoppers (37%) than female (22%)

Electrical Goods are much more popular with male online shoppers (37%) than female (22%)

[Base: All male and female Online Shoppers ]

50

Online Shoppers – Items & Spend

European Online Shoppers bought an average of 10 items online in just six months in 2006 – an Increase of 11% since 2005

European online shoppers spent an average of €750 online in a six month period in 2006

51

UK buys most Items online

18

1110 10

98

7 7 76

5

UK

Denm

ark

Germ

any

Europ

ean A

vera

ge

Sweden

Franc

e

Norway

Nethe

rlands Ita

ly

Belgi

umSpa

in

Av

era

ge

Nu

mb

er

of

Ite

ms

Bo

ug

ht

On

line


Q18. In the last six months, how many purchases would you say you have made on-line?

52

Female online shoppers in Sweden buy more items online than men…

19

12 1211

98 8 8

76

5

17

11

7

9

6

10

5 5

76

4

UK

Denm

ark

Germ

any

Europ

ean A

vera

ge

Franc

e

Sweden

Norway

Nethe

rlands Ita

ly

Belgi

umSpa

in

Av

era

ge

Nu

mb

er

of

Ite

ms

Bo

ug

ht

On

line

Men Women

[Base: All male and female Online Shoppers ]


53

… it appears they search for a bargain as they secured a high numbers of purchases but spent less money

€ 1,852

€ 1,368

€ 1,159 € 1,124

€ 801 € 848€ 766

€ 641€ 584 € 584

€ 503

€1027 €1031 €1159 €888 €776 €633 €579 €366 €420 €232 €371

Norway UK

Denm

ark

Sweden

Belgi

um

Europ

ean A

vera

ge

Nethe

rlands

Germ

any

Franc

eIta

ly

Spain

Av

era

ge

Am

ou

nt

Sp

en

t O

nlin

e (

€)

Men Women


Q19. In the last six months, approximately how much money would you say you spent in total on all your on-line purchases?

54

The average online shopper spent €750 online in just 6 months

€ 1,406

€ 1,201 € 1,159

€ 1,013

€ 790 € 750€ 681

€ 521 € 509€ 454 € 452

Norway UK

Denm

ark

Sweden

Belgi

um

Europ

ean A

vera

ge

Nethe

rlands

Germ

any

Franc

eIta

ly

Spain

Av

era

ge

Am

ou

nt

Sp

en

t O

nlin

e (

€)


Q19. In the last six months, approximately how much money would you say you spent in total on all your on-line purchases?

55

Online Shoppers – European Bargain Hunters

Online shoppers visit significantly more Auction, Price Comparison and Banking and Finance websites

Auction sites are most popular amongst online shoppers in Germany (62%)

Dutch online shoppers are the biggest bargain hunters with more than half (54%) using price comparison websites

48% of Swedish online shoppers visit price comparison sites

56

67%

57%53% 56% 54%

50%43% 43%

36%29% 29%

34%

25% 24% 24%

88%

40% 38%34%

28% 29%32%

23% 22% 22%

88%

40%41%

91%

49% 51%47%

36% 38%

50%53%

63%

85%

Searc

h en

gines

Emai

l

News

Trav

el

Holid

ays

Banki

ng a

nd Fin

ance

Loca

l inf

ormat

ion

Mus

ic

Auctio

n

Sports

Tech

nolo

gy

Price

Compar

ison

Film

s

Cars

or m

otorin

gJo

bs

Health

Prope

rty

Mob

ile p

hones

Fam

ily &

kid

s

Online Shoppers European Average

[Base: All internet users and all online shoppers]


Online shoppers visit significantly more, auction, price comparison and banking and finance websites

57

48% of online shoppers in Sweden use price comparison websitesQ. Which of the following types of websites do you visit at least once a month?


62%

49%

37% 36%32% 30% 29%

14%

54%

42%

30% 26%

20%

48%50%

25%

42%

30%

39%

50%

Germ

any UK

Belgiu

m

Nether

lands

Sweden

Denmar

kIta

ly

France

Norway

Spain

Auction Price Comparison

58

12.3

14.4 14.2

13.0

14.9 14.8

0

6

12

18

24

2004 2005 2006A

vera

ge

Nu

mb

er o

f H

ou

rs p

er W

eek

Online ShoppersEuropean Average

Online shoppers spend less time watching TV and listening to the radio

TVTV RadioRadio

13.6 13.9 13.7

14.515.4 15.3

0

6

12

18

24

2004 2005 2006

Ave

rag

e N

um

ber

of

Ho

urs

per

Wee

k

Online ShoppersEuropean Average

[Base: All TV viewers in Europe and online shoppers who watch TV] [Base: All internet users in Europe and all online shoppers who use the internet]


59

Nearly three quarters of online shoppers find that the internet provides what they want when they want it


9 10

19 17

86 7

1419

36

2 3 3 387 5 4

9 10

7471

48 49

33

Provides what youwant quickly/saves

time

Has what you wantwhen you want it

Puts you in control Keeps you ahead ofgame

Good for when brainmost active

TV Newspapers Magazines Radio Internet

%

[Base: All Online Shoppers using all media types]

Online Shoppers Using All Types of MediaOnline Shoppers Using All Types of Media

4. WIRELESS USERS MAKE THE MOST OF THE NET…

61

Wireless Users

Wireless Users are internet users who regularly access the interneton the move via a PDA or laptop in a wi-fi location

37% of European wireless users regularly visit social networking sites

Over a third create and share their own content and/or contribute reviews and ratings to websites.

Wireless users spend over 17 hours or 10% of their week online

48% of wireless users spend less time watching TV as a result of the internet

Wireless users are more likely shop online

Over 80% of wireless users find that the internet provides what they want when they want it

62

The biggest group of Wireless Users are aged between 35-44

24.0% 19.8%13.1%

19.9% 22.3%

16.4%

24.4%21.9%

18.2%

16.7%18.2%

17.4%

10.4% 11.9%

15.7%

4.5% 5.8%19.2%

0%

25%

50%

75%

100%

Wireless Users All Internet Users All Europeans

% o

f to

tal n

um

be

r

65+

55-64

45-54

35-44

25-34

16-24

AGE. Just to ensure we speak to a representative spread of people, could I please ask how old you are?

63

Wireless users are much more likely to engage in online activitiesQ7a/b. Which of the following types of web activities/websites do you use at least once a month?

30% 31% 26% 23% 19% 17% 17% 16% 15% 15% 14% 13% 12% 12% 9%

37%

49% 49%43% 41%

37%33%

28%22%

33% 34%

23%18%

28% 26% 25%

17%

All Internet Users Wireless Users

37% of wireless users regularly visit social networking sites and they are far more likely to listen to the radio, make telephone calls and create and share content than the average internet user

37% of wireless users regularly visit social networking sites and they are far more likely to listen to the radio, make telephone calls and create and share content than the average internet user

64

Wireless users dedicate 10% of their week to using the internet

15.3 14.8

11.3

5.24.0

14.0 13.5

17.1

5.24.0

Watch television Listen to the Radio Use the Internet Read Newspapers Read Magazines

Users of Each Media Wireless Users Using Each Media

Q5a In a typical week how long do you spend watching television/reading newspapers/reading magazines/listening to the radio/using the internet?

Av

era

ge

nu

mb

er

of

ho

urs

pe

r w

ee

k

65

Internet impacts how wireless users spent their leisure time

35%

24% 23% 23% 23%20% 18% 18% 17% 16% 16% 15%

11%

48%

41%36% 37% 37%

28%25%

29% 29%25%

21% 21%

14%

Wat

ch T

V

Read b

ooks

Read n

ewsp

aper

s

Read m

agaz

ines

Talk

on the

phone

Send te

xt m

essa

ge

Liste

n to ra

dio

Buy m

usic

Outdoor a

ctiv

ities

Play

sports

/exe

rcis

e

Liste

n to m

usic

Spend ti

me

with fr

iends

/fam

ily

Work

All Internet Users Wireless Users

Q20b Which of the following do you less often (not through the internet) as a result of using the internet?

Nearly half watch less TV as a result of the internetNearly half watch less TV as a result of the internet

66

Wireless users buy more items and spend more money online than the average online shopper

750€ 1396€

10.0

20.0

0

5

10

15

20

All Online Shoppers Wireless Users Who ShopOnline

0€

250€

500€

750€

1000€

1250€

1500€

Online Spend (€)

Number of Items Bought Online


Q18/19. In the last six months, how many purchases would you say you have made on-line and approximately how much money would you say you spent in total on all your on-line purchases?

67

Wireless users buy far more holidays and electrical goods online, they are confident internet shoppers

Q16. Have you ever bought any of the following products/services using the internet?

Top 12 Products Bought OnlineTop 12 Products Bought Online

Product Wireless Users Who Shop Online

All Online Shoppers

Travel tickets 67% 52%

Holidays 55% 38%

Electrical Goods 50% 30%

Concert/Festival tickets 48% 37%

Books 48% 37%

Clothes 38% 31%

CDs 37% 25%

Theatre/Cinema tickets 35% 21%

DVDs 31% 22%

Music Downloads 31% 20%

Insurance 16% 14%

Toys 16% 13%

68


1%7% 12% 7%4% 3%

12% 14%2% 2% 2% 4%6% 4% 4% 8%

85% 81%

65% 63%



Puts you in control Keeps you ahead of game

TV

Newspapers

Magazines

Radio

Internet

10% 11%21% 18%

6% 8%14% 18%

2% 3% 2% 3%8% 5% 5% 9%

71% 67%

45% 47%



Puts you in control Keeps you ahead of game

TV

Newspapers

Magazines

Radio

Internet

Wireless users trust the internet to provide them what they want when they want it

Wireless Users Using All Types of MediaWireless Users Using All Types of Media

All Europeans’ Using All Types of MediaAll Europeans’ Using All Types of Media

69

Wireless Users - Access to technology

81% have a home PC (compared to 61% of all Europeans)

68% have an MP3 player or iPod

61% have wi-fi access in their home.

Wireless Internet Users also use the internet much more at the weekend, with 91% of on the move PDA/laptop users using the internet on a Saturday or Sunday compared to 79% of all internet users.

70

Wireless users love their state of the art technology

40%

72%

61%

41%36%

25%21%

17%

34%

19%

30%

9% 10%

27%

16% 13%

94% 94%

81%77%

68% 65% 63% 61%

52%46% 45%

41%36% 35% 34% 33%

DVD Rec

orde

r

DVD Pla

yer

Home

PC

Digic

am

MP3

Playe

r/iPod

Photo

Prin

ter

Home

Lapto

pW

i-Fi

Digita

l TV

Web

cam

Games

Conso

le

Home

wi-fi L

apto

p

HDTV

Stand-

alone

Digita

l Rad

io

PVR/DVR

Plasm

a Scr

een

All Respondents Wireless Users

QC6. Which of the following do you have in your household?

81% own a home PC and 61% have a wi-fi connection at home81% own a home PC and 61% have a wi-fi connection at home

71

Mobile Internet Users

Mobile Internet Users are internet users who own a mobile phone and regularly

access the internet on the move via their mobile phone

Internet users who own a mobile phone and access the internet on the move using their phone are also heavy users of the internet - on average this group spends over 15 hours a week online, compared to average of just over 11 hours.

71% have surfed internet sites on their mobile.

62% have sent/received emails

43% have used mobile IM

79% of this user group are aged under 45 years old (compared with 64% of all internet users).

72

79% of mobile internet users are under 45 years old

27.9%19.8%

13.1%

29.7%

22.3%

16.4%

21.5%

21.9%

18.2%

12.8%

18.2%

17.4%

6.4%11.9%

15.7%

1.8% 5.8%19.2%

0%

25%

50%

75%

100%

Mobile Internet Users All Internet Users All Europeans

% o

f to

tal n

um

be

r

65+

55-64

45-54

35-44

25-34

16-24

AGE. Just to ensure we speak to a representative spread of people, could I please ask how old you are?

73

Usage of mobile technology available has grown considerably since 2005


2006

Score 2005

Score Year-on-year

trend

Watched video/film clips 7% 4% +75%

Made video call 5% 3% +67%

Downloaded music 6% 4% +50%

Listened to radio 10% 7% +43%

Sent picture/video message 26% 19% +37%

Downloaded software applications 4% 3% +33%

Taken photos/video clips 40% 30% +33%

Sent/received emails 15% 12% +25%

Surfed internet sites 11% 9% +22%

Downloaded games 7% 6% +17%

2006

Score 2005

Score Year-on-year

trend

Watched video/film clips 7% 4% +75%

Made video call 5% 3% +67%

Downloaded music 6% 4% +50%

Listened to radio 10% 7% +43%

Sent picture/video message 26% 19% +37%

Downloaded software applications 4% 3% +33%

Taken photos/video clips 40% 30% +33%

Sent/received emails 15% 12% +25%

Surfed internet sites 11% 9% +22%

Downloaded games 7% 6% +17%

Top 10 Growth Activities (% Change)Top 10 Growth Activities (% Change)

Q7d In addition to making phone calls or sending text messages, which of the following activities have you undertaken using your mobile phone/Blackberry/PDA?

5. KEY FINDINGS

75

Key Findings

Digital advertising is taking more share of total ad spend and the rate is not slowing

Time spent using the different media needs to be taken into account when media planning but even more important is the level of engagement with each media and how they are used in people’s daily lives

Social Networking websites are a growing trend - used by nearly a quarter of Europeans, at least once a month

Online shopping is increasing substantially year on year

Wireless users are a good indicator of how people will use media in the future – they display high levels of engagement with online, a greater preference for this media compared with others, they spend more money online and surround themselves with digital technology

Thank you!

For further information please contact:

Alison Fennah

European Interactive Advertising [email protected]

or register for our newsletter athttp://www.eiaa.net/registration/shwregister.asp

mailto:[email protected]

http://www.eiaa.net/registration/shwregister.asp

european interactive advertising association ‘european media landscape and future trends’ alison...

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