What’s HOT in the UK

The State of Online Display Advertising

17 November 2010

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Today’s presentation

1. Why?

Who?

What?

When?

Where?

2.

#admetrix

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Why? What are we seeing in our data

Companies are advertising more online, especially in Display advertising

Agencies are creating innovative formats

Across the board, internet advertising is more measurable and accountable

– Ability to monitor advertising by size and format

– Visibility on trend data for advertisers and publishers

– Insightful metrics and reports to measure display advertising delivery and

effectiveness

#admetrix

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The creative mix – is the banner dead?

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GDP leveling out but still on the increase

Source: Office of National Statistics

Internet-related budgets

Slowest for three quarters but

one of only two categories to

see an upwards adjustment!!

Q2 2010 Bellwether report

Speculation over a bumper

Christmas due VAT increase

In 2011

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Should the world of online display be worried?

#admetrix

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UK online market resurgence

Source: IAB ‘10 years of advertising’ 2010

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Online market resurgence “on display”

Growing display advertising market

– Google makes 7 predictions for display advertising market by 2015

1. 50% of online ads will have video in them

2. 50% of all targeted display advertising will rely on real-time bidding

3. Mobile will become #1 screen for advertising

4. New metrics will emerge to measure success of ad campaigns

5. 75% of ads will become socially enabled

6. 50% of brand campaigns will run rich media in ads

7. Display advertising will become a $50 billion industry

Source: Google's Seven Display Ad Predictions

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=136685

#admetrix

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Display Advertising is forecasted to grow quicker than Search

Source: Zenith Optimedia, Advertising Expenditure Forecasts – UK October 2010

Advertising Expenditure (£ million)

0

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011 2012

Display

Classified

Search

#admetrix

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Ad Metrix advertising data highlights display ad market resurgence

Source: comScore Ad Metrix , UK, Q3 2009 – Q3 2010

164,733,948172,334,592

197,981,286205,560,426

199,756,902

221,112,705

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

Online Display Advertising Impressions by Quarter

On

lin

eD

isp

lay A

dve

rtis

ing

Im

pre

ss

ion

s (

000

)

#admetrix

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H1 2009 vs. H1 2010

Source: PwC/IAB, The Advertising Association / WARC

H1 2010

£1.97bn Market

An increase of £209m year-on-year

10% increase on a like for like basis

“In 2010 online Display ad spend is growing thanks to the

growth of Video and Social Display Advertising”

#admetrix

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Social Networking sites are driving impression growth

Facebook – Top Display Ad Publisher in UK

Ads become more social as Facebook’s presence grows

Source: comScore Ad Metrix Advertiser Trend, comScore Ad

Metrix Publisher Trend, UK

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Faceb

oo

k

To

p 3

Ad

ve

rtis

ers

Virgin Group Ltd. Telefonica Europe British Sky Broadcasting Group plc FACEBOOK.COM

Total Display Ad Impressions (000)

#admetrix

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Today’s presentation

Source: IAB ‘10 years of advertising’ 2010

1. Why?

Who?

What?

When?

Where?

2.

#admetrix

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Who is advertising more and Where

Top 10 Advertisers Q3 2010 Top 10 Publishers Q3 2010

Source: Ad Metrix Advertiser Report, Ad Metrix Publisher Report, UK, Q3 2010

Total Display Ad

Impressions

(MM)

Share of Display

Ad Impressions

Total Internet 221,113 100

Facebook.com 68,687 31.1

Microsoft Sites 13,692 6.2

eBay 8,800 4

Google Sites 8,160 3.7

Yahoo! Sites 7,778 3.5

Glam Media 2,807 1.3

Trader Media Group 2,267 1

AOL, Inc. 2,109 1

Bebo.com 1,635 0.7

Amazon Sites 1,596 0.7

Total Display Ad

Impressions

(MM)

Share of Display

Ad Impressions

Total Internet 221,113 100.0

Virgin Group Ltd. 4,367 2.0

Telefonica Europe 2,903 1.3

British Sky

Broadcasting Group plc2,602 1.2

BT Group plc 2,310 1.0

Media Ingenuity Ltd. 1,392 0.6

Jackpotjoy Ltd 1,173 0.5

eBay, Inc. 1,154 0.5

Microsoft

Corporation1,000 0.5

TUI Travel PLC 826 0.4

Google Inc. 814 0.4

#admetrix

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Poll:

Who was the Top Advertiser in the Retail Sector in UK in Sept 2010?

#admetrix

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Poll:

Answer

Source: comScore Ad Metrix, UK, Sep 2010

M&S for Business

M&S Limited Collection

M&S Dine for two £10

M&S Autumn Clothing

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Case:

Marks & Spencer’s Online Advertising Trend

Ad Metrix UK, September 2010

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Answer:

Marks & Spencer delivered 197 billion Ad Impressions in Sept 2010 in UK

Source: comScore Ad Metrix Creative Thumbnail Report, UK, September 2010

Marks & Spencer Display Ad

Campaign

Display Ad Impressions

(Sep 2010)

Run Dates Duration

M&S Autumn Clothing 8,594,000 Sep 10 - Sep 30, 2010 20 days

M&S Limited Collection 8,090,000 Jul 19 – Sep 8, 2010 51 days

M&S Dine for two £10 4,168,000 Sep 15 – Sep 30, 2010 15 days

M&S for Business 3,659,000 Jul 16 – Sep 30, 2010 76 days

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Marks & Spencer’s Top Line Category Ad Impression ranking

Ad Metrix September 2010

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Creativity matters to build brands

Source: comScore ARS Global Validation Summary

Creative quality up to

4x more

important than media

plan

% Influence on Shift in Brand Sales

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Publishers are experimenting with creativity

New innovative ad formats

– AOL unveils Project Devil, a new super-sized ad format

designed to minimize ad clutter and engage consumers

Source: Specs and Style Guide: Specs and Style Guide

http://online.wsj.com/public/resources/documents/AOLstyleguide091310.pdf

Options include:

Large size 400x1200

Logo

Ad

Video

Apps

Facebook

Twitter

Maps

#admetrix

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Case:

Spotify innovative advertising model

Spotify’s Innovative Advertising Model:

Mood - targeted advertising

Spans platforms

Larger ad sizes with customisation

Brand association with favourite

songs

Target ads based on user inputs

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Case:

Spotify Advertisers

Source: Ad Metrix Advertiser Report, UK, September 2010

145,808 143,250

90,12583,808

63,098

47,690

38,77733,014 30,445

23,307

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Top 10 Advertisers in Spotify

Total Display Ad Impressions (000)

#admetrix

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Telefonica (O2) Creative Summary

Ad Creative Reporting By

Total Internet

Total Display Ad

Impressions (000)

Share of Publisher Ad

Impressions

Total Internet 926,733 100.0

Flash(Generic)

Flash(Generic) 809,298 87.3

Flash 809,298 87.3

Standard GIF/JPEG

Standard GIF/JPEG 109,388 11.8

GIF/Animated GIF 77,813 8.4

JPEG 30,085 3.2

PNG 1,490 0.2

Rich Media Display

Rich Media Display 8,044 0.9

PointRoll 4,619 0.5

EyeBlaster 3,338 0.4

EyeWonder 88 0.0

Other Types

Other Types 2 0.0

Source: Ad Metrix Creative Summary, UK, September 2010

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Telefonica Europe Top Creatives on Spotify

Source: Ad Metrix Creative Summary Report, UK September 2010

#admetrix

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Case:

Telecommunications is one of the fastest growing categories in UK

Source: Ad Metrix Advertiser Trend, UK September 2010

2,851,556

4,115,252

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Q2 Q3

Telecommunications UK Q3 vs. Q2

Total Display Ad Impressions (000)

#admetrix

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Poll:

Which Telecoms advertiser placed the most display ads in Sept 2010?

Source: Ad Metrix Advertiser, UK September 2010

#admetrix

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The battle of the publishers

Source: comScore Ad Metrix, August 2010

#admetrix

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Key Take Aways

On the WHY:

– It’s BIG, it’s CURRENT, it’s GROWING!

On the WHO, WHAT, WHEN and WHERE:

– Advertisers and their Agencies are successfully experimenting new

approaches, delivering great results through Online Display Advertising

– Publishers have new and greater opportunities for monetization

– comScore Ad Metrix makes it easy to understand and navigate what’s HOT in

advertising

#admetrix

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And what about Shaun?

#admetrix

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Questions?

Thank you!

For any follow-up, please email Ciaran O’Sullivan at: cosullivan@comscore.com

For more information on Ad Metrix, please visit:http://www.comscore.com/Products_Services/Product_Index/Ad_Metrix

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