iab europe ad ex 2009

AdEx 2009European online advertising expenditure

Published September 2010

Introduction 3

About this report 4

Executive summary 5

Europe and the US 6

23 European markets in perspective 7

Europe retrospective 8

Update on ‘10 before 10’ 10

Search top of the formats in 2009 11

Search 12

Classifieds 15

Display 17

Regional and country detail

Western Europe 20

Central and Eastern Europe 23

Forecasting the European advertising market in 2009-2010 25

2010-2011 Forecast 25

Online TV advertising 27

Mobile advertising 29

Top 10 properties December 2009 30

Top 10 ad publisher sites by ad impressions 32

Internet penetration in Europe 34

Appendix i – Definition of formats 36

Appendix ii – Participating IABs 37

Appendix iii – Methodology and adjusted data 38

Appendix iv – Estimates and adjustments 39

Appendix v – Our research partners 40

Special thanks 41

Contents

IAB Europe AdEX 2009Published September 2010© IAB Europe

Introduction

One thing the digital advertising industry cannot be accused of is

complacency: we devote a great deal of time, energy and money to

continually challenging ourselves. As a young industry in a rapidly

moving environment, IAB Europe’s members know that if we don’t

adapt, we won’t survive. This year’s AdEx Europe Benchmark report

shows that our self-examination is paying off: in extremely difficult

economic times Europe’s online advertising market has continued to

grow and - what’s more - it was the only advertising format that

didn’t go backwards in 2009. The internet share of the total

advertising market approached 20%, almost doubling its slice of the

market over two years.

Search advertising once again led the field recording a 10.8%

increase on a like-for-like basis, a slowdown from the previous year

but a notable achievement nonetheless. Display advertising was flat

and even down in most mature markets. We took brand advertising

as our theme for this year’s Interact Congress in Barcelona,

recognising the need to reinforce the message that brand advertising

offers unique scope in creativity, innovation and engagement and it is

capable of delivering the enhanced measurement standards

advertisers seek to justify more investment in campaigns. Pressure

on budgets had kept them relying on tried and tested formats, but

the good news is that display is already sprouting the green shoots of

recovery in the first quarter of 2010. Video on digital platforms

combined with social media is capable of delivering reach and

efficiency measures to challenge any traditional media.

Growth in the most mature online ad markets UK, France, Germany,

Netherlands, Spain and Italy - slowed to single digit rates, though

Spain and Italy grew more as they started from a lower base. Growth

in Spain was remarkable when compared to the collapse of its

traditional advertising market at –23%. Only four markets posted

double-digit growth in 2009: Greece, Austria, Poland and Turkey

again starting from low bases.

Our reach this year has expanded with Russia, Switzerland, Bulgaria

and Slovakia joining the AdEx Europe Benchmark – we welcome them

wholeheartedly as members and celebrate the fresh perspectives

each one brings to the report. In addition, we received figures from

Ireland - one of our newest IABs - once the AdEx research had been

produced and released in June. We’re pleased to provide some Irish

figures in this report, but you won’t see the numbers in the total

figures for 2010.

Alain HeureuxIAB Europe President and CEO

My thanks to Catherine Borrel of IAB Europe and Vincent Létang and

Daniel Knapp of Screen Digest for presenting so clearly the data and

analysis of research covering 23 markets ranging from the mature

markets of the Nordic nations and Western Europe to the emerging

markets in Eastern and Southern Europe. In addition to auditing the

AdEx data, Screen Digest’s analysts have provided some forward

looking commentary and data that we hope you’ll find useful. I would

also like to thank our members InSites Consulting, comScore and

Nielsen Online for providing us with additional data for this report.

As the fourth issue of this report, IAB Europe is proud to

acknowledge that our annual report has become essential reading for

everyone connected to the digital advertising industry in markets

throughout the world. We hope that once again you will find the data,

insight and forecasts in this report useful for your business.

We look forward to the next chapter!

Regards

Alain Heureux

3IAB Europe AdEX 2009Published September 2010© IAB Europe

The sources of the online advertising spend data contained within

this report are the annual industry benchmarking studies run by each

national Interactive Advertising Bureau (IAB) in Europe. The national

benchmarking studies represent the income of thousands of websites

and online advertising businesses.

The results reported are considered the closest measurement of

online advertising revenues across Europe as the data is compiled

directly by local IABs based on information supplied by companies

selling advertising online. Only IABs that were able to provide 12 full

months of advertising expenditure data are included.

The data for this report is stated on the basis of actual gross income

(the monies actually paid by the advertiser, including any agency

commission). The report incorporated data from the following four

online advertising sectors:

w Display advertising

w Search (pay per click fees)

w Classifieds & Directories

w Other

IAB Europe in partnership with Screen Digest collates and aggregates

the data and makes the adjustments necessary to enable the data to be

comparable. More details of this process are provided in the Appendix.

The result is comparable data based on actual revenues from across

Europe. This is the fourth edition of the report, and therefore once

again we are able to include year-on-year comparisons in the report

for those countries that have participated for at least two years.

Screen Digest does not audit the information or the data from local

IABs and provides no opinion or other form of assurance with respect

to the information. Only aggregate results are published and

individual company information is held in strict confidence by the

audit partners of local IAB studies.

The figures featured in this report include data from 23 IABs. In

addition we have figures for the Irish market detailed in the

Appendix, however these were not published in time to be included in

the main report

4

About this report


2009. Whilst the mature markets managed small growth despite the

impact of the economic climate, some of the markets in the CEE

region experienced setbacks, with Romania, Slovakia and Croatia’s

online advertising markets showing small declines of up to 5.5%.

However the total advertising industries of these emerging markets

also suffered the greatest impact of the economic conditions with

overall declines of up to 33%, showing that the online industry was

still well outperforming the other advertising channels in this region.

Search remains the leading format in Europe, driving growth in the

sector with a year-on-year growth rate of 10.8% taking it to €6.7

billion; Display remains static with a growth of 0.3% at €4.4 billion;

and Classifieds and Directories drop slightly, with a decline of -1.4%

taking the total invested in this sector to €3.4 billion.

This report provides detailed analysis of what is happening in each of

the formats, along with forecasts based on the AdEx 2009 figures

from our research partner Screen Digest.

€13.2

0

3

6

9

12

15

Billi

on E

uros

2008 2009Source: IAB Europe/Screen Digest ©

€14.7

Total online advertising 2008 & 2009like-for-like growth of 4.5%

European online advertising continued to grow in 2009, despite the

challenging economic climate that severely affected almost every

advertising market in the region.

Total online advertising spend for the 23 countries under

measurement in the IAB Europe network reached €14.7 billion in the

year. This represents a like-for-like growth of 4.5% on the 2008

total of €13.2 billion.

The gap between the values of the online advertising markets in

Europe and the USA has continued to narrow, with the difference

dropping from €3.7 billion in 2008 to €1.6 billion in 2009, reflecting

the strong performance of the European markets in difficult

economic times.

The top six markets in Europe account for 76% of the total value of

the market. Still at 64%, the share of the European online advertising

market attributed to the UK, Germany and France has not changed in

5

Executive summary


Europe

USA

Total online ad spend Europe vs USA2008 & 2009

0

5

10

15

20

2008 2009Source: IAB Europe/Screen Digest ©

Billi

on E

uros

€16.3€16.8

€14.7

€13.2

Between 2008 and 2009 total US online advertising spend actually

decreased from €16.8 to €16.3 billion, compared to the increase in

Europe of €1.5 billion. Most European markets recorded stronger

performance than the US between 2008 and 2009, with Croatia,

Romania and Slovakia the only European markets to record a decline

in spend during this time.

6

Europe and the US


Source: IAB Europe/Screen Digest ©

Total by country 2008 and 2009

Million Euros

0 1000 2000 3000 4000 5000

20092008

Romania

Croatia

Slovenia

Slovakia

Greece

Hungary

Turkey

Finland

Austria

Belgium

Poland

Denmark

Norway

Sweden

Spain

Netherlands

Italy

France

Germany

UK€ 3,834

€ 4,011€ 2,939

€ 1,731€ 3,092

€ 849€ 798

€ 1,760

€ 800€ 815

€ 635€ 683

€ 455€ 467

€ 374€ 401

€ 296€ 263

€ 384

€ 390

€ 280

€ 228

€ 293€ 200

€ 79€ 120€ 108€ 182€ 174

€ 69€ 46€ 85

€ 21€ 20€ 24€ 26

€ 14€ 13

€ 15€ 15

Once again, in 2009 the UK is the largest online advertising market inEurope, with a spend of just over €4 billion. Germany and France arethe only other markets with spend of over a billion.

Each of these countries also recorded like-for-like growth in theregion of 2-5% in Euro terms when compared to 2008 figures.

Looking at share of spend, UK once again dominates, representing

7

27% of the overall online spend across Europe, followed by Germanywith 21% and France with 12%. Italy (6%), the Netherlands (6%) andSpain (5%) are the next largest markets in terms of spend,maintaining the same proportions they had in 2008.

Across the European markets covered in this report, online accountsfor 16.5% of main media spend. However at country level this figureranged from 27.3% in the UK, down to 1.8% in Romania.

The 23 European markets in perspective

Share of total spend by countryMillion Euros

Source: IAB Europe/Screen Digest ©UK €4,011

Germany €3,09221%

France €1,76012%

Netherlands €8156%

Italy €8496%

Spain €683, 5%

Russia €514, 3%

Sweden €467, 3%

Norway €401, 3%

Denmark €384, 3%Switzerland €355, 2%Poland €296, 2%Belgium €293, 2%Austria €228, 2%Finland €182, 1%Turkey €120, 1%Hungary €85, 1%Greece €69, 0%Bulgaria €25, 0%

Slovakia €24, 0%Slovenia €21, 0%

Croatia €15, 0%Romania €13, 0%

27%

Only countries with 2 years of data shown


Looking back over the past challenging year for the industry, the

growth of just 4.5% - compared to 20% in 2008 - reflects the

economic environment. At a country level the average growth rate

was just 6%.

Only four countries recorded double digit growth, with Greece being

the most impressive at 49%, followed by Austria (14%), Poland

(13%) and Turkey (12%). At the other end of the scale, the online

advertising markets in Croatia, Romania and Slovakia actually shrank

in 2009.

We have adjusted the 2008 results using 2009 exchange rates to

provide like-for-like data for the country totals. The UK, Germany

and France are the only countries to break €1 billion in 2009

- a similar result to 2008. Emerging markets such as Romania,

Croatia, Slovenia and Slovakia are small compared to the more

established markets like Spain and the Netherlands.

8

European online advertising industry grew 4.5% in 2009


Growth by country from 2008 to 2009

Greece

Austri

a

Polan

d

Turke

ySp

ain

Hungary Ita

ly

German

y

Belgium

Finlan

d UK

Swed

en

France

Denmark

Netherl

ands

Slove

nia

Norway

Croati

a

Roman

ia

Slova

kia-10

0

10

20

30

40

50

Average 6%

49%

14% 13%12%

7% 7%6%

5% 5%4%

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

-3%-5% -6%


9

European online advertising industry grew 4.5% in 2009


0 1000 2000 3000 4000 5000

Romania € 13Croatia

SloveniaSlovakia

BulgariaGreece

HungaryTurkeyFinlandAustria

BelgiumPoland

SwitzerlandDenmark

NorwaySweden

RussiaSpain

NetherlandsItaly

France

GermanyUK

€ 15 € 21 € 24 € 25 € 69 € 85 € 120

€ 182 € 228

€ 293 € 296

€ 355 € 384 € 401

€ 467 € 514

€ 683 € 815

€ 849 € 1760

€ 4011 € 3092

Online advertising spend by country 2009

Million Euros


"Digital advertising is capable of delivering not double, but triple

digit growth if everyone can play their role to the best of their

ability. In particular as an industry, we need to agree on our Key

Performance Indicators, and to find a standardised way to measure

online branding"

Jef Vandecruys, Global Project Leader Digital Connection, Anheuser-Busch InBev

Industry growth -the advertiser’s perspective


10 before 10 achieved

In June 2008, Alain Heureux, President of IAB Europe predicted that

we were well on the way to achieving a major online advertising

milestone, where online advertising in 10 European countries would

account for at least 10% of overall ad spend by 2010. In spite of the

challenging economic climate, in 2009 this target was surpassed with

15 countries investing 10% or more of their main media spend on

online advertising. In 2008 nine countries met this benchmark, whilst

in 2007 there were only seven.

These results highlight the growing importance of online as part of

the advertising media mix. In fact in 2009 there are five countries -

Netherlands, Sweden, Norway, Denmark and the UK - where online

represents at least 20% of the main media spend. Only eight countries

have an online advertising industry that constitutes less than 10% of

main media spend.

WARC’s main media figures include spend on newspapers,magazines, TV, radio, cinema and outdoor advertising

UK 27.3%

Spending on online advertising as a proportion of main media spend in 2009

Source: IAB Europe/WARC ©

Denmark

Norway

Sweden

Netherlands

GermanyFrance

Switzerland

Finland

PolandSpain

Russia

Belgium

Italy

Hungary

Turkey

Austria

Slovenia

Bulgaria

Croatia

GreeceRomania

25.5%

23.4%

22.6%21.8%

17.8%15.3%

14.0%

14.0%13.4%

12.4%

11.7%

10.6%10.3%

10.1%9.2%

7.5%

6.7%

6.2%6.2%

4.1%

1.8%

% of main media spend

However, it still accounted for 30% of the European online market,

with a spend of €4.4bn across the 23 markets measured.

Search outperformed display last year as the pressures of the

economic conditions encouraged advertisers to focus on achieving

return on investment through direct response formats at the expense

of brand advertising. However as countries in the IAB Europe network

are already reporting a recovery in online display in the first quarter

of 2010 it seems that this trend was only temporary.

In 2008 Classifieds & Directories enjoyed a healthy year-on-year

growth of 17.4%, but this was not repeated in 2009, with the format

actually shrinking in value by -1.4%. This slight decline was driven by

the impact that the recession had on industry sectors that invest in

classifieds: recruitment and real estate. However, Classifieds &

Directories still represented 23% of the ad spend and had a market

value of €3.4bn.

Share of formats 2009Million Euros


Classifieds &Directories

€3,420, 23%

Search€6,733, 46%

Other€182, 1%

Display€4,011, 30%

Search continued to grow in 2009, posting a 10.8% increase on a

like-for-like basis, although this was down from 26% growth the

previous year. In 2009 search accounted for 46% of online ad

expenditure in the 23 markets measured, with a value of €6.7bn.

Display advertising was flat overall (+0.3%) and was down in most

mature markets: France (-6%), UK (-5%) and (Sweden -5%).

11

Search remained resilient, but display under pressure in 2009


Growth of formats 2008-2009

-2

0

2

4

6

8

10

12

Classifieds & Directories

DisplaySearch

10.8%

0.3%

-1.4%


Search value and growth

Austri

a

Belgium

Bulgari

a

Croati

a

Denmark

Finlan

d

France

German

y

Greece

Hungary Ita

ly

Netherl

ands

Norway

Polan

d

Roman

iaRu

ssia

Slova

kia

Slove

niaSp

ain

Swed

en

Switz

erlan

d

Turke

y UK


0

500

1000

1500

2000

2500

Growth 2008-2009

2009 Value

Mill

ion

Euro

s

Gro

wth

%

75

100

50

25

0

-25

12

w Value €6.7 billion

w Accounts for 46% of overall online spend

w Total European like-for-like growth 10.8%

w Top five countries in terms of value: UK, Germany, France,

Netherlands, Spain

w Top five countries in terms of growth: Greece, Croatia, Hungary,

Denmark, Poland

w Only two countries recorded a shrinking search sector in 2009:

Slovakia and Slovenia.

Search


13

Search

2009

2008

Romania

Slovakia

Slovenia

Croatia

Bulgaria

Hungary

Greece

Turkey

Austria

Poland

Finland

Switzerland

Norway

Belgium

Sweden

Denmark

Russia

Italy

Spain

Netherlands

France

Germany

UK € 2,200€ 2,409

Search value by country 2008 and 2009(all data adjusted to 2009 exchange rates)

€ 1,328€ 1,461

€ 525€ 572

€ 400€ 410

€ 324€ 356

€ 285€ 316

€ 255

€ 116€ 149

€ 112€ 125

€ 95€ 105

€ 78€ 96

€ 95

€ 85€ 93

€ 65€ 82

€ 60€ 75

€ 43€ 54

€ 20€ 40

€ 13€ 18

€ 7€ 3€ 5€ 6€ 4€ 4€ 4

€ 1

Source: IAB Europe/Screen Digest © Million Euros

0 500 1000 1500 2000 2500


Laurent is passionate about the role digital can play in building

brands “Online has a huge advantage over some traditional media in

that it can drive sales and build brands simultaneously. Whilst sales

oriented search and direct response activity will never be totally

superseded by brand building online, there will inevitably be a greater

balance between the budgets allocated to each in the future.

Laurent Delaporte, VP of Microsoft Advertising, EMEA

Brand building and the media mix

Today there’s a disconnect between the percentage of ad budgets

allocated to online marketing campaigns and the levels of consumers’

online use. The mission – one that is totally possible and down to the

digital industry to embrace - is to understand how to combine digital

in the ad mix in the most appropriate way for each brand.”

14

Search

-20 0 20 40 60 80 100

-19.5%

-6.7%2.5%

8.1%

9.0%

10.0%

10.6%

10.7%

11.0%

9.9%

11.4%

22.9%

24.8%

24.8%

25.3%

25.8%

27.9%

38.1%

66.2%

100.0%Greece

Croatia

Hungary

Denmark

Poland

Austria

Romania

Turkey

Norway

Sweden

Italy

Belgium

Finland

Germany

Spain

France

UK

Netherlands

Slovakia

Slovenia


Search growth by country 2008-2009(all data adjusted to 2009 exchange rates)

% Growth


Mill

ion

Euro

s

Gro

wth

%

Growth 2008-20092009 Value

Classifieds & directories value and growth


0

100

200

300

400

500

600

-40

700

800

-30

-20

-10

0

10

20

30

40

Austria

Belgium

Bulgaria

Croatia

Denmark

Finlan

dFra

nce

German

y

Greece

Hungary Italy

Netherl

ands

Norway

Polan

d

Romania

Russia

Slova

kia

Slove

niaSp

ain

Swed

en

Switz

erlan

dTurke

y UK

15

w Top five countries in terms of growth: Slovenia, Spain, Italy,

Slovakia, Sweden

w Six countries had a shrinking classified sector in 2009: Croatia,

Denmark, Finland, UK, Germany, Belgium



w Total European like-for-like growth -1.4%

w Top five countries in terms of value: UK, France, Germany, Italy,

Netherlands



0 200 400 600 800 1000

2009

2008

Greece

Romania

Slovenia

Croatia

Bulgaria

Slovakia

Hungary

Turkey

Finland

Spain

Austria

Poland

Russia

Denmark

Belgium

Switzerland

Sweden

Norway

Netherlands

Italy

Germany

France

UK € 802€ 760

€ 686€ 704

€ 656€ 637

€ 170€ 185

€ 171€ 175

€ 157€ 162

€ 144€ 153

€ 136€ 108€ 107

€ 128€ 92

€ 84€ 45€ 47€ 46€ 47€ 40€ 45

€ 36€ 30€ 30€ 30

€ 12€ 12

€ 5€ 5

€ 4€ 7€ 4€ 1€ 1€ 0.01€ 0.01

Classifieds & directories value by country 2008-2009

Source: IAB Europe/Screen Digest © Million Euros



Classifieds & directories growth by country 2008-2009(all data adjusted to 2009 exchange rates)

Growth %

-50 -40 -30 -20 -10 0 10 20 30

Croatia

Denmark

Finland

UK

Germany

Belgium

Hungary

Turkey

Romania

Austria

Netherlands

France

Norway

Poland

Sweden

Slovakia

Italy

Spain

Slovenia 29.3%

10.9%

9.0%

8.7%

6.7%

5.5%

3.0%

2.7%

2.1%

0.6 %

0.6 %

0.6 %

0 %

-0.7%

-2.9 %

-5.3 %

-17.5 %

-28.7 %

-40.5 %


Mill

ion

Euro

s

Gro

wth

%

Growth 2008-20092009 Value

Display value and growth


Austria

Belgium

Bulgaria

Croatia

Denmark

Finlan

dFra

nce

German

y

Greece

Hungary Italy

Netherl

ands

Norway

Polan

d

Romania

Russia

Spain

Slova

kia

Slove

nia

Swed

en

Switz

erlan

dTurke

y UK0

200

400

600

800

1000

-20

-10

0

10

20

30

17



w Total European like-for-like growth 0.3%

w Top five countries in terms of value: Germany, UK, France, Italy,

Spain

w Top five countries in terms of growth: Austria, Greece, Finland,

Denmark, Poland

w Seven countries had a shrinking display sector in 2009: Norway,

Slovakia, France, Romania, Sweden, UK, Hungary.

Display


0 200 400 600 800 1000

2009

2008

Croatia

Romania

Greece

Turkey

Hungary

Finland

Belgium

Austria

Switzerland

Norway

Denmark

Poland

Russia

Sweden

Netherlands

Italy

France

UK

Germany € 956€ 994

€ 821€ 777

€ 482€ 453

€ 323€ 326

€ 205€ 206

€ 190€ 180

€ 174€ 145€ 158

€ 129€ 141€ 154€ 137

€ 124€ 91€ 103

€ 77€ 81

€ 54€ 59

€ 49€ 49

€ 35€ 37

€ 26€ 29

€ 270Spain € 278

Bulgaria

Slovakia € 15€ 17

€ 14Slovenia € 13

€ 14€ 13€ 12€ 5€ 6

Display value by country 2008 - 2009

Source: IAB Europe/Screen Digest ©Million Euros

18

Display


“Branding is a continuous task for marketers and the basic principles

of marketing apply to campaigns online as well as offline. The brand

manager of a sophisticated luxury brand for example will be looking

to communicate that message online - and publishers need to be

aware of this. Some websites still don't understand this and clutter

their sites - big turn offs for advertisers and users alike”

Tom Bowman, Vice President of Strategy & Operations forGlobal Advertising Sales at BBC Worldwide

Brand building and your audience

Publishers like BBC Worldwide are in the business of selling audience

and, in order to do this effectively, they need to understand attitudes

to different devices (mobile, PC, games console) and then craft the

message to win attention. Successful online brand campaigns, as in

every other medium, rely on understanding the audience and

matching the advertiser, the brand and the message to it”

-12 -9 -6 -3 0 3 6 9 12 15

Norway

Slovakia

France

Romania

Sweden

UK

Hungary

Netherlands

Italy

Spain

Germany

Belgium

Turkey

Croatia

Slovenia

Poland

Denmark

Finland

Greece

Austria 13.4 %

9.6 %

9.4 %

9.4 %

8.9 %

8.6 %

6.2 %

-5.4 %

4.0 %

4.5 %

5.0 %

-5.3 %

-0.047 %

0.2 %

1.0 %

3.1 %

-11.1 %

-9.2 %

-6.0 %

-5.5 %

Display growth by country 2008 - 2009(all data adjusted to 2009 exchange rates)

Source: IAB Europe/Screen Digest ©Growth %

19

Display


“The advertising recession hit hard in 2009, with total UK media

down 11.2%. Against this background, online display held up

relatively well in the UK, recording its first ever annual decline at -

Guy Phillipson, Chairman IAB Europe & CEO IAB UK

5.3%. The star format was undoubtedly video advertising, which grew

a staggering 140%. And with continued strong growth in social

media, the UK can look forward to a healthy overall increase in 2010”

Mill

ion

Euro

s

DisplayClassifieds & DirectoriesSearchOther

Spend by format and by country: Western Europe

UK

Germ

any

Fran

ce

Italy

Net

herla

nds

Spain

Swed

en

Nor

way

Denm

ark

Switz

erlan

d

Belg

ium

Austr

ia

Finlan

dSource: IAB Europe/Screen Digest ©

Other

Search

Classifieds

Display

€65.9

€2408.9

€759.7

€776.7

€1461.2

€636.5

€993.9

€30.8

€572.0

€704.4

€453.0

€21.6

€316.4

€185.3

€326.0

€24.5

€410.0

€175.0

€205.6

€3.9

€356.4

€44.7

€278.3

€9.1

€124.7

€153.4

€179.7

€6.1

€95.6

€161.7

€137.2

€2.5

€148.9

€91.5

€140.6

€95.1

€136.4

€123.9

€104.7

€107.4

€80.7

€3.2

€75.2

€46.6

€103.0

€93.5

€29.9

€58.7

0

1000

2000

3000

4000

5000

Greec

e

€40.0

€0.0

€28.5

20

GermanyAs was the case in 2008, Germany is the second largest market

overall. Germany has the most valuable display sector - worth €994

million, however in terms of proportional spend, this only accounts

for 32% of the overall online ad spend. Search is the dominant

category, with 47% of overall online spend, with Classifieds &

Directories at 21%. The German online advertising market also

managed a small growth despite the fact that the advertising market

as a whole saw a decline of -9.3%,

UKThe UK is the largest market by spend of the 23 countries covered in

this report, with a value of just over €4 billion in 2009. The UK also

recorded the highest proportional spend for online - 27.3% of total

main media spend. Search is the dominant category in the UK,

accounting for 60% of total online spend, and making the UK the

country with the highest proportion of online ad spend in this category.

The UK online advertising market managed a 3.2% like-for-like growth

when the rest of the advertising market saw a decline of -11.5%

Regional and country detail Western Europe

2009 Online Ad Spend €4,011 m

2008-2009 online ad spend growth 3.2%

2009 main media spend (WARC) €14,714 m

Online as a proportion of main media spend (WARC) 27.3%






21

SpainSpain had the third highest proportional spend on Search in Europe, at

52%. Display is the second largest category at 41%, whilst Classifieds

& Directories account for only 7% of online spend. Growth was just

above average at 7.1% and achieved when the advertising market as a

whole saw a decline of -20%. As online still only accounts for 12.4%

of main media spend there is still room for strong growth.

SwedenAt 22.6% Sweden has the third highest proportion of online spend as

part of the overall main media mix. Display accounts for 38% of

spend, followed by Classifieds & Directories (33%) and Search (27%).

The modest growth of 2.7% in online advertising was achieved in a

year where the advertising market as a whole saw a decline of -13.4%.

NorwayNorway has the second highest proportion of main media spend

devoted to online - 23.4%. The majority of spend, 40%, goes on

Classifieds & Directories. This is the highest proportion in Europe, a

position shared with France where 40% of spend also goes towards

Classifieds & Directories. Display represents 34% of online spend in

Norway, while Search accounts for just 24%.

FranceFrance, along with Norway, has the largest classified market in terms

of proportional spend (both 40%), and the second largest after the

UK in terms of spend (€704m). Search is the second most popular

category at 32%, followed by Display at 26%. The online advertising

market in France managed a small growth despite the fact that the

advertising market as a whole saw a decline of -12.5%

ItalyItaly is the fourth largest market in Europe, maintaining its position

from 2008. Display is the dominant sector, but only by 1% in

proportional spend terms accounting for 38% of the spend compared

to Search on 37%. Classifieds & Directories come a distant third at

22%. However as online still represents only 10.3% of main media

spend, considerably below many other Western European markets,

there is still room for industry growth in the near future.

NetherlandsThe Netherlands is the fifth largest market in terms of spend. As one

of the most mature European markets, the Netherlands saw little

growth in online advertising spend in 2009 - just 1.8%. This was

achieved despite the advertising market as a whole declining by -13.1%

in the same period. Search is the predominant category, accounting

for 50% of spend, followed by Display (25%) and Classifieds &

Directories (21%). 21.8% of the Netherlands main media spend goes

towards online, which is the fifth largest proportion in Europe.






2009 Online Ad Spend €683 m











Online as a proportion of main media spend (WARC) 23%




Online as a proportion of main media spend (WARC) 23.4%2009 Online Ad Spend €815 m





22

FinlandThe Finnish online advertising market is worth €182 million in 2009,

which represents14% of main media spend. Search represents 51% of

online spend, followed by Display (32%) and Classifieds & Directories

(16%).

IrelandIreland is the second smallest market in Western Europe, worth

€97.2 million in 2009. Search represents 46% of online spend,

followed by Classifieds & Directories (27%) and Display (26%). This is

the first year that data from Ireland has been included in the AdEx

report, so there is no growth data available. There is no WARC data

available for Ireland. The data from Ireland was received after initial

publication, and is therefore not included in the other calculations in

this report.

GreeceGreece was the fastest growing market in Europe in 2009 by a

considerable margin, recording an increase of 48.9%, although the

overall market value is small, and online represents only 4.1% of

main media spend. Greece is the only European market that recorded

no spend on Classifieds & Directories in 2009, instead spending 58%

on Search and 42% on Display advertising.

DenmarkOne quarter of Denmark's main media spend goes to online - the

second highest proportion in Europe. Search accounts for 39% of

spend, closely followed by Display (37%), with Classifieds &

Directories on 22%.

SwitzerlandSwitzerland is a new market for this report, so no growth figures are

available. The Classifieds & Directories market accounts for 38% of

total online spend, the second highest proportion in Europe. Display

accounts for 35%, and search 27%.

BelgiumBelgium devotes 10.6% of main media spend to online. Classifieds &

Directories account for 37%, Search 36% and Display 28%.

AustriaAlthough Austria recorded the best growth rate in Western Europe, and

the second highest growth rate overall (14%), online still only accounts

for 7.5% of main media spend. Display is the dominant format (40%),

followed by Search (33%) and Classifieds & Directories (20%).



2008-2009 online ad spend growth 2%

2009 main media spend (WARC) €1,507









2009 Online Ad Spend €97.2 m


2008-2009 online ad spend growth 14%









2009 main media spend (WARC) €1,654



23

Mill

ion

Euro

s

DisplayClassifieds & DirectoriesSearchOther

Spend by format and by country: Central and Eastern Europe

Russi

a

Polan

d

Turk

ey

Hunga

ry

Bulg

aria

Slova

kia

Slove

nia

Croa

tia

Rom

ania


Other

Search

Classifieds

Display

€255.5

€84.2

€174.1

€8.4

€82.4

€47.0

€158.4

€53.8

€29.8

€36.8

€4.7

€18.5

€12.4

€49.1

€6.6

€4.0

€14.0

€3.8

€5.2

€15.3

€0.9

€4.5

€1.2

€14.0

€5.0

€4.0

€5.7

€0.2

€0.6

€0.01

€12.3

0

100

200

300

400

500

600

PolandThe Polish online market had the third highest growth rate in 2009 of

12.7%, and online also accounts for 13.4% of main media spend -

comparable to some markets in Western Europe. Display is by far the

most popular category, accounting for 53% of online spend, followed

at a distance by Search (28%) and Classifieds & Directories (16%).

RussiaRussia makes its first appearance in this year's report, so no growth

data is available. Russia is the largest CEE market, worth €514

million. Online also represents 11.7% of main media spend - a figure

higher than some more established markets such as Belgium and

Italy. Search accounts for half of Russia's online ad spend, followed

by Display (34%) and Classifieds & Directories (16%).

Regional and country detail Central and Eastern Europe








Although overall online ad spend is low in this region compared to Western Europe, three of the four fastest growing online markets all come fromthis region - Greece, Turkey and Poland.


24

SloveniaSlovenia is the third smallest online advertising market in Europe,

and the only one of these three markets to record growth, albeit only

of 1.6%. Proportionally it has the second largest Display market, at

68% of online spend. Search accounts for 22% of spend, and

Classifieds & Directories just 6%.

CroatiaThe value of the online advertising market in Croatia fell by 2.7% in

2009, making it the second smallest market in Europe. However there

is a reasonable balance between formats with 39% spent on Display,

34% on Search and 29% on Classifieds & Directories.

RomaniaRomania is the smallest online advertising market in Europe, with

just €13 million, representing a decline of 4.5% since 2008. It also

has the smallest proportion of main media spend devoted to online,

just 1.8%. Romania has the highest proportional spend on Display in

Europe, accounting for 94% of the total market. Search accounts for

4% and Classifieds & Directories just 0.1%.

TurkeyTurkey was the fourth fastest growing market in Europe in 2009,

with a growth rate of 11.7%, and online already represents 9.2% of

main media spend. Search accounts for 45% of online spend, followed

by Display (31%) and Classifieds & Directories (25%).

HungaryAlthough the online advertising market in Hungary is one of the

smallest in Europe, the market value of €85 represents 10.1% of main

media spend. The market grew at just over the European average rate

in 2009. 58% of online spend goes to Display advertising, followed at

some distance by Search (22%) and Classifieds & Directories (15%).

BulgariaThis is the first year Bulgaria has appeared in this report, so no trend

data is available. Online ad spend in Bulgaria accounts for just 6.2% of

main media spend. Display is the dominant format, accounting for 57%

of spend, followed by Search (27%) and Classifieds & Directories (16%).

Regional and country detail Central and Eastern Europe






2009 main media spend (WARC) €395




2009 main media spend (WARC) €843 m



2008-2009 online ad spend growth -5.5%










SlovakiaAt -5.5% Slovakia recorded the largest decline in online ad spend in

2009. However, online still outperformed the advertising market as a

whole, which declined by -32.7% in the same period. The majority of

online ad spend went towards Display (63%), followed by Classifieds

& Directories (21%) and Search (15%).





25

However, even in the most mature Western European markets like the UK,Sweden or Germany, online advertising is set to outperform the overalladvertising markets. In Germany, online advertising will grow by 9.5% in2010 whereas the overall advertising market will post a 3.2% increase.

Online advertising trends are not just an East-West affair. There aresignificant contrasts within the Big Five European advertising markets(France, Germany, Italy, Spain, UK). Online advertising still commands arelatively low market share in Italy and Spain, allowing these markets togrow double-digit in 2010 and beyond as the budget migration from othermedia to online is still in full swing.

In terms of segments, paid-for search is still driving digital advertising,with double-digit growth in most of Europe, where advertisers of all sizesand categories are valuing it as an effective and cost-efficientcommunication channel. Google reported UK revenues up 17% year-on-year like-for-like in the first half of 2010, while ‘rest-of-the world’

Forecasting the European Market

Screen Digest expects online advertising to resume double-digit growth in 2010 and 2011By Vincent Létang and Daniel Knapp, senior analysts, advertising research

Display bounces back

-5

0

5

10

15

20

2011

2010

2009

Classifieds & DirectoriesSearchDisplayTotal online advertising

Online advertising growth by format Europe

4.5%

10.8%10.1%

0.3%

7.9%

9.5%

10.8%

15.1%

12.9%

-1.4%

6.0%

4.9%



Following the 2009 recession, the advertising market is recovering acrossEurope, and across most media categories. Screen Digest is forecastingWestern Europe to grow by 3.7% for all media ad spend while Central andEastern European markets will see an aggregate growth of 5%.

As for online advertising, recovery means re-acceleration from 4.5%growth in 2009 to 10.8% in 2010, outperforming all other mediacategories once again, although the gap in growth rates is narrowing. Thisis the consequence of maturity of online and the fact that television isbouncing back strongly this year, driven by the World Cup and thehistorically cheap rates reached at the end of last year.

Online advertising growth will be particularly strong in Central andEastern Europe. In this region, a combination of expanding broadbandinfrastructure, improved audience measurement and low basis in terms ofonline ad spend per capita €3 compared to €34 in Western Europe leaves alot of room for growth.

26


0

5

10

15

20

2011

2010

2009

UKSpainItalyGermanyFrance

2.2%

7.7%

12.0%

Total online advertising growth by country

7.5%

9.5%

5.2%

3.2%

13.6%

12.3%

7.1%

17.5%

11.5%

6.4%

9.5%

7.1%


revenues were up 24%. Although we believe Google’s display formats andrevenues, non-European markets have grown even more strongly, ScreenDigest modelling suggests 2010 growth for paid-for search will bebetween 10% and 30% in continental Europe, and around 13% in the UK,despite the fact that the UK is one of the world’s most saturated searchmarket. Alongside Central and Eastern Europe, we expect Scandinaviancountries to experience the highest growth rates in search in the mid-term. In Scandinavia, strong online directories from the pre-Google erahave long hindered the rapid uptake of search advertising, but budgets areincreasingly migrating from directories to search.

However the main feature of internet advertising this year and next isprobably the perspective of renewed online display growth after a severeslowdown in 2009. This is part of a general return to brand advertising,also benefitting television and outdoor in particular, after almost twoyears of focusing on traffic and direct, ROI-oriented short termmarketing. Although CPMs and CPCs are flat or still going down in mostformat categories, many publishers are successful in limiting the erosionof ‘premium’ CPMs, while ‘remnant’ inventory is increasingly sold usingtargeting technologies that make it cost-efficient and attractive for somecategories of advertisers. Revenue growth is thus not generated by

increased prices in each format, but by the fact that the market’s centreof gravity is drifting towards higher-value formats like video, mobile,special high visibility banner formats and sponsorship. Networkconsolidation is also happening in most territories. It is welcomed by thebuying side, which likes to see fragmentation and transaction costs goingdown and generating economies of scale in trading. Ad exchanges arecoming of age as the next step in display trading.

But traditional, CPM-based display still has room for growth, as manymainstream advertisers, for instance in FMCG who had delayed or sloweddown their display uptake in 2009, are returning strongly this year. Theyare further encouraged by the widespread availability of video inventory,most notably catch-up pre-rolls which are often planned alongsidebroadcast TV, and the shift of video sharing sites towards professionalcontent consumption.

In 2010-2011, many mainstream global advertisers are also gearing uptheir use of social media, acknowledging user-friendly buying mechanismsand the fact that 500 million Facebook users cannot be ignored by anyglobal brand. The 2010 FIFA World Cup was also the first time the internetplayed a massive role in global campaign alongside television.


27

The UK was the biggest contributor in 2009, accounting for 45% of

online TV ad revenue in the big five, reflecting that online TV

services from the major commercial broadcasters are now well

established. However, it is worth noting that online TV consumption

remains well below traditional TV – in 2009 the average weekly

traditional TV viewing per capita in the UK was around 26 hours

according to BARB, compared with just 0.6 hours for online TV and

UGC combined.

As well as distributing content on their own ad-supported services,

two of the UK broadcasters are making full-length programmes

available via YouTube to find a wider audience for their content.

Under these affiliate deals, the broadcasters maintain control of ad

sales to avoid competing on inventory for the same content and

eroding CPMs.

European broadcasters are also extending the reach of their ad-

supported content across internet-connected living room devices,

agreeing deals with consumer electronics manufacturers to make

their content available over-the-top (OTT) to TVs, Blu-ray players

Online video consumption in Western Europe is dominated by user-

generated content (UGC) but professionally produced content offers

much better opportunities for monetisation. Consequently, online TV

accounts for a disproportionately high share of revenue: in the ‘big

five’ European territories – France, Germany, Italy, Spain and the UK

– online TV represented 64% of online video revenue in 2009 despite

only amounting to 7% of total online video streams/downloads.

Advertising is the prevailing business model in the online TV market,

generating 67% of revenue, which is indicative of efforts by

commercial broadcasters in Europe to extend their traditional

business online by offering programming on a ‘catch-up’ basis after

linear transmission. In 2009 revenue from online TV advertising

almost doubled in the big five reaching €252m, up from €136m in

2008, with broadcasters – having access to the catch-up TV content

that drives consumption and being able to leverage existing

relationships with advertisers – accounting for the lion’s share (73%

in 2009).


By Marie Bloomfield, analyst, broadband media

Broadcasters drive growth in online TV ad revenue

0

20

40

60

80

10020102009


28.3

48.0

35.6

50.0

4.9

48.4

5.79.2

60.7

96.2

Online TV advertising revenues (€m)

Source: Screen Digest and comScore


28


Online TV advertising revenues as a share of online and TV ad spend 2009

0

1

2

3

4

5

6

7

8

Share of TV ad spend

Share of online ad spend



6.2%

0.9%

3.6%

1.0%

1.8%

0.1%

1.9%

0.2%

7.6%

1.8%

and games consoles. Well ahead of their US counterparts, eight major

broadcasters in the big five had agreed deals with third party vendors

to ‘carry’ their free-to-view online TV content before the start of

2010; and they have recently been joined by ProSieben. Of the US

broadcasters, only CBS has adopted a similar approach. By contrast

Hulu, online TV joint venture from ABC, Fox and Disney, announced in

July 2010 that it will be available via a range of connected devices

but only for users paying a monthly fee.

In addition, broadcasters in Europe are collaborating to launch their

own device-based platforms for online TV to boost consumption of the

ad-supported content they offer online. In the UK, all four of the major

local broadcasters are also investing in hybrid DTT/OTT initiative

Project Canvas, a joint venture that aims to launch a platform for

online TV content and linear channels in 2011. Five was also an early

partner but recently pulled out. While in Germany, RTL and ProSieben

have announced plans to launch an open platform for online TV,

offering a single point of access on the web for broadcaster catch-up

programming. Separately, several German and French broadcasters are

engaged with Hbb TV, intended to harmonise broadcast and broadband

content delivery to the living room.

There are no equivalent propositions in Southern Europe, where

broadcasters have generally been slower to launch expansive ad-

supported online TV services. Consequently, Spain and Italy generated

comparatively little online TV advertising revenue in 2009. However,

the Italian market is expected to grow significantly year-on-year in

2010 due in large part to Mediaset. Despite only launching its catch-

up service in January 2010, the broadcaster has already pulled ahead

of its rivals in terms of monetisation of online video thanks to a

relatively high ad load for long-form content; three pre-rolls and two

to three mid-rolls every 20 minutes.

In Spain, where the advertising crisis has hobbled the emerging

online TV business, ad loads are often much lower – a single pre-roll

per TV show, if any. However, as the advertising market recovers it is

anticipated that ad loads will increase and online TV CPMs are actually

expected to rise heading into 2011 while they decline in the rest of

the big five European territories.


29

has trouble exiting the lucrative messaging ditch it carved for itself;

LG and Samsung will play it safe with multiple operating systems; and

as for Microsoft and Palm/HP, 2010 is about restructuring an offer

rather than a power demonstration.

Operator’s practices with data charging must also be kept in check to

avoid bill shock. Operators still have to deal with the schizophrenia of

offering powerful advertising solutions and respecting the users’

permissions/privacy/preferences. With search firmly within the

grasp of online incumbents and display following the same path,

messaging remains a great opportunity for operators. However they

need to work on allowing their inventories to open up, since

advertisers usually avoid dealing with operator fragmentation. In this

light, infrastructure vendors might have a substantial opportunity if

they offer operators the right tools.

The year ahead promises more of the same consolidation, growth and

maturation. We can expect operators and tech companies to keep on

preparing for the significant growth ahead, and mobile to integrate

further into advertisers’ digital advertising arsenal.

From a demand side perspective, the smartphone environment is

bringing scale, creativity and usability. On top of being a great channel

for CRM and social media and a return-channel for other media

(typically TV), mobile advertising is now establishing itself in the

display and search environment. Some challenges remain however:

fragmentation of standards and currencies; absence of independent

third-party ad-serving and reliance on operators for data and campaign

reporting. In terms of audience measurement, the deal between

comScore and GSMA to aggregate operators’ data on mobile internet

usage is a major breakthrough but it only applies in the UK so far.

The past 12 months have paved the way for a maturing period inmobile advertising. Can everyone win?

If there were any doubts last year about the strategic importance of

mobile in the future of advertising, they were most likely wiped clean

after the market events of the past 12 months.

After an important peak in funding in 2008, 2009 was more about

venture exits and bigger players making their moves. Between July 2009

and June 2010, mobile advertising saw at least 28 acquisition deals,

twice the number of deals for the previous 12 months. If Google

(AdMob) and Apple (Quattro Wireless) stood out, we should also

mention companies such as Orange (Unanimis), Nokia (Acuity Mobile) or

Velti (Media Cannon) who were active and will likely continue to be so.

The consolidation in mobile advertising essentially underlines a path

towards maturity for mobile advertising. Despite its small size (IAB

UK estimated mobile ad spend to be £38m i.e. around 1% of overall

digital media spend), mobile advertising seems to be taking off at

last in 2009: +32% year-on-year like-for-like in the UK in 2009.

Now that formats and metrics have started to fall in place, now is the

time for scaling and increasing budgets. For advertisers, the key

challenge will become to cope with regional environments that might

provide very different usages for the mobile device: for example,

countries with a high smartphone penetration will be better suited for a

mobile app strategy, while emerging markets will still favour SMS.

Smartphone advertising in 2010-2011 will likely remain a two-horse

race between Apple’s iAds and Google’s Android + AdMob combo.

Nokia-backed Symbian doesn’t leverage its high shipment volumes

either from developer interest or user data consumption; BlackBerry


By Julien Theys, senior analyst, mobile media

Mobile advertising comes of age

2008 2009 2010 2011 2012 2013 2014

Handset Shipments (m) 290 289.6 297.8 303.4 298.8 302.1 307.9

Smartphone share of handset market 11.3% 14.8% 19.8% 22.7% 26.2% 29.2% 32.5%


30

We would like to thank IAB Europe member comScore for providing us with this data from December 2009

Top 10 properties

Total Unique Visitors (000) % Reach

Total Internet : Total Audience 4,544 100.0

Google Sites 3,546 78.0

Microsoft Sites 2,403 52.9

FACEBOOK.COM 1,677 36.9

Wikimedia Foundation Sites 1,621 35.7

eBay 1,451 31.9

Amazon Sites 1,274 28.0

United-Internet Sites 1,208 26.6

Yahoo! Sites 1,169 25.7

Otto Gruppe 1,086 23.9

ORF.AT 1,034 22.8

AUSTRIATotal Unique Visitors (000) % Reach




Deutsche Telekom 26,166 51.5

eBay 25,679 50.6

ProSiebenSat1 Sites 24,155 47.6

United-Internet Sites 22,110 43.5



AOL LLC 20,848 41.1

Hubert Burda Media 19,346 38.1

GERMANY

Total Unique Visitors (000) % ReachTotal Internet : Total Audience 5,545 100.0Google Sites 5,187 93.5Microsoft Sites 4,709 84.9FACEBOOK.COM 3,470 62.6Wikimedia Foundation Sites 2,152 38.8Belgacom Group 1,927 34.8Yahoo! Sites 1,724 31.1eBay 1,685 30.4Telenet Sites 1,642 29.6NETLOG.COM* 1,595 28.8De Persgroep 1,275 23.0

BELGIUMTotal Unique Visitors (000) % Reach





Yahoo! Sites 876 47.2

AOL LLC 829 44.6

eBay 640 34.4

Wikimedia Foundation Sites 637 34.3

Ask Network 531 28.6

Amazon Sites 473 25.4

Apple Inc. 466 25.1

IRELAND






Eniro Sites 1,293 37.2

DR.DK 1,260 36.2

eBay 1,190 34.2

XTV2 Danmark 1,147 33.0

XJP Politiken Hus 1,134 32.6

XWikimedia Foundation Sites 1,095 31.5

Yahoo! Sites 957 27.5

DENMARKTotal Unique Visitors (000) % Reach





Telecom Italia 11,611 55.4


WIND Telecomunicazioni 9,714 46.4

eBay 9,382 44.8


Ask Network 5,609 26.8

eMule (App) 5,456 26.0

ITALY






SanomaWSOY 1,958 60.1



ILTALEHTI.FI 1,510 46.3

MTV3.FI 1,331 40.8

IRC-GALLERIA.NET 1,247 38.2

YLE.FI 1,105 33.9

FINLAND






Orange Sites 23,090 52.3

Iliad - Free.fr Sites 20,819 47.2



Comment Ca Marche 18,359 41.6

Groupe PPR 18,212 41.3

Groupe Pages Jaunes 17,847 40.4

FRANCE





Hyves 7,654 64.0

SanomaWSOY 7,021 58.7

eBay 6,304 52.7

Publieke Omroep 5,608 46.9


Telegraaf Media Groep 4,341 36.3

KPN 4,095 34.2

Bol Sites 3,498 29.2

NETHERLANDS





Schibsted (Anuntis-Infojobs-20minutos) 2,259 73.0



Telenor 1,350 43.6

AS Avishuset Dagbladet 1,294 41.8


NRK Sites 1,021 33.0

TV2 Sites 897 29.0

NORWAY


Source: comScore – Data in above charts is for age 15+except for UK, France, Germany and Spain which is age 6+

2531

Top 10 properties








Grupo Prisa 8,635 39.9

RCS Media Group 8,466 39.1

Vocento 8,169 37.8


Terra - Telefonica 7,912 36.6

SPAIN







Bonnierförlagen 3,074 53.3



BLOGG.SE 2,229 38.6

Swedbank 1,993 34.5

Spotify 1,975 34.2

SWEDEN






Swisscom Sites 1,950 43.2



Apple Inc. 1,504 33.3

MIH Limited 1,337 29.6

eBay 1,228 27.2

Deutsche Telekom 1,189 26.3

SWITZERLAND






Dogan Online 12,158 59.1

Milliyet Group 9,213 44.8

BLOGCU.COM 9,132 44.4

Mynet A.S. 8,612 41.8

Hurriyet Internet Group 8,193 39.8

Nokta Internet Teknolojileri 7,723 37.5


TURKEY





Portugal Telecom 2,385 62.3

HI5.COM 2,252 58.9


UOL 1,320 34.5


Grupo Impresa 1,251 32.7

iG Sites 1,202 31.4

WordPress 1,154 30.2

PORTUGAL



Yandex 22,124 60.5

Mail.Ru Sites 21,453 58.6


Vkontakte 17,127 46.8

RosBusinessConsulting 16,023 43.8

Rambler Media 13,875 37.9

AOL LLC 13,714 37.5

BitTorrent Network 10,651 29.1



RUSSIA







eBay 22,936 54.3

BBC Sites 21,156 50.1



Ask Network 16,993 40.2

AOL LLC 15,739 37.2

UK


Source: comScore – Data in above charts is for age 15+except for UK, France, Germany and Spain which is age 6+

2632

We would like to thank IAB Europe member The Nielsen Company for providing us with this data from 2009

Top 10 ad publisher sites by ad impressions

Rank Site % of Total Ad Impressions

1 News Networld 19.3%

2 Krone 13.2%

3 VOL Vorarlberg Online 6.8%

4 willhaben 6.5%

5 ORF 6.5%

6 oe24 5.3%

7 Austria.com 4.4%

8 HEROLD 4.0%

9 Kurier Online 2.9%

10 Geizhals 2.7%

Source: The Nielsen Company

AUSTRIARank Site % of Total Ad Impressions

1 T-Online 25.5%

2 Bild.de 7.6%

3 wer-kennt-wen 7.1%

4 mobile 3.5%

5 GMX 3.4%

6 eBay 3.3%

7 Spiegel Online 3.2%

8 Web 2.8%

9 MSN 2.4%

10 Yahoo 2.1%


GERMANY


1 7Sur7 20.2%

2 HLN 17.9%

3 Skynet Belgacom 10.4%

4 2dehands 3.3%

5 Vlan 3.3%

6 Gazet van Antwerpen 2.8%

7 Corelio - De Standaard 2.7%

8 Hebbes 2.6%

9 Le Soir 2.5%

10 Nieuwsblad 2.5%


BELGIUMRank Site % of Total Ad Impressions

1 Libero 14.0%

2 Tiscali 10.0%

3 Alice/Virgilio 9.9%

4 Repubblica 8.9%

5 Corriere della Sera 6.5%

6 Yahoo 4.3%

7 TGcom 3.2%

8 Il Meteo 3.1%

9 MSN 3.1%

10 Gazzetta 2.0%


ITALY


1 TV2 13.0%

2 Ekstra Bladet 11.3%

3 Den Bla Avis 6.9%

4 BT 5.7%

5 Jubii 5.2%

6 Eniro 4.9%

7 MSN 4.8%

8 Sondagsavisen 4.8%

9 Politiken 3.5%

10 Bilbasen 3.4%


DENMARKRank Site % of Total Ad Impressions

1 De Telegraaf 6.0%

2 De Financiele Telegraaf 4.8%

3 Funda 4.7%

4 Tiscali Netherlands 4.1%

5 RTL Group 3.8%

6 Algemeen Dagblad 3.8%

7 Voetbal International 3.2%

8 Autotrader 3.0%

9 Nu.nl 2.7%

10 AutoTelegraaf 2.6%


NETHERLANDS


1 L Equipe 9.0%

2 Le Monde 8.2%

3 Yahoo 7.1%

4 JeuxVidéo.com 5.5%

5 01 Net 4.4%

6 Boursorama Groupe 3.7%

7 Le Figaro 3.7%

8 Orange 3.7%

9 Pages Jaunes 3.5%

10 Skyrock.com 3.3%


FRANCE



1 VG Nett 51.7%

2 Finn 8.5%

3 Sol 5.8%

4 Dagbladet 5.4%

5 Nettavisen 5.0%

6 Aftenposten 3.9%

7 MSN 3.1%

8 Hegnar Online 2.7%

9 NRK 2.6%

10 ABC Startsiden 1.7%


NORWAY

33

Top 10 ad publisher sites by ad impressions


1 Mynet 11.4%

2 Milliyet 9.2%

3 Hurriyet 7.2%

4 Memurlar.net 5.6%

5 SABAH 3.9%

6 Haber7 3.8%

7 Sahadan.com 3.8%

8 Internet Haber 3.4%

9 Zaman 2.6%

10 Ekolay.net 2.5%


TURKEYRank Site % of Total Ad Impressions

1 Sapo 25.0%

2 Record 13.7%

3 A Bola 12.6%

4 Iol Portugal 8.9%

5 Publico 8.3%

6 Jornal de Negocios 3.6%

7 Correio da Manhã 3.6%

8 O Jogo 2.5%

9 Jornal de Noticias 2.2%

10 Losomundo 2.2%


PORTUGAL


1 Marca 18.9%

2 El Mundo 12.8%

3 Diario AS 6.6%

4 Terra 5.9%

5 MSN Spain - Windows Live 5.3%

6 Sport.es 3.7%

7 Orange 3.0%

8 El Pais 2.6%

9 Idealista 2.4%

10 Elconfidencial.com 2.2%


SPAIN


1 Aftonbladet 40.2%

2 Expressen 7.7%

3 MSN 6.6%

4 Tradera 6.3%

5 Blogg 3.7%

6 Svenska Dagbladet 2.7%

7 TV4 2.6%

8 Di.se 2.4%

9 Bilddagboken 2.1%

10 Dagens Nyheter 1.9%


SWEDEN


1 Swisscom / Bluewin 22.8%

2 Blick Online 11.8%

3 20 Minuten 10.4%

4 Tagesanzeiger 9.0%

5 PartyGuide.ch 4.5%

6 NZZ Online / Neue Zürcher Zeitung 4.5%

7 Homegate 3.7%

8 Search.ch 3.5%

9 GMX 3.0%

10 Car4You 2.1%


SWITZERLAND


Brand Total Unique Visitors (000) % Reach

TOTAL: 38,931 98

Google 34,299 86

MSN/WindowsLive/Bing 28,487 72

Facebook 23,404 59

BBC 21,447 54

Yahoo! 21,009 53

Amazon 20,701 52

Microsoft 18,579 47

eBay 18,115 46

YouTube 17,110 43

Wikipedia 14,030 35


UK

Internet Penetration in Europe

Total population 8.4m

Internet penetration 16 years + 67 %

Source 2009 Eurostat Online Database

Austria


Internet penetration 16 years + 66%

Source 2009 Eurostat Online Database & InSites MC DC 2009 CATI Research & Forrester Data

BELGIUM




BULGARIA




DENMARK




FINLAND




FRANCE




GERMANY




GREECE




HUNGARY




IRELAND




ITALY




NETHERLANDS




NORWAY




POLAND





CROATIA

Internet Penetration in Europe




SLOVAKIA




SLOVENIA

Total population 46m



SPAIN




SWEDEN




SWITZERLAND

Total population 62m



UK





ROMANIA

Appendix i – definition of formats

The following four formats are collated as part of this report:

Display advertisingAn advertiser pays an internet company for space to display a static

or hyper-linked banner or logo on one or more of the internet

company’s pages. For the purposes of this report all forms of internet

sponsorship, tenancies, rich media formats and non-transaction

based affiliates were collected separately by local IABs and have been

included in the figure for display advertising.

Where possible, transaction related payment models have been

excluded, leaving non-transaction based affiliate revenues

incorporated into display.

SearchFees advertisers pay internet companies to list and/or link their

company site domain name to a specific search word or phrase

(includes paid search revenues), where the fee paid by the client is

based on the number of clicks on the listing results. Search

categories include:

w Paid listings – text links appear at the top or side of search

results for specific keywords. The more a marketer pays, the

higher the position it gets. Marketers only pay when a user clicks

on the text link

w Contextual search - text links appear in an article based on the

context of the content, instead of a user submitted keyword.

Payment only occurs when the link is clicked

w Paid inclusion – guarantees that a marketer’s URL is indexed by a

search engine. The engine’s search algorithms determine the

listing..

ClassifiedsFees advertisers pay internet companies to list specific products or

services (eg. online job boards and employment listings, real estate

listings, automotive listings, yellow pages). Can be either business-

to-business or business-to-consumer.

‘Other’ CategoryThis is an umbrella category for smaller non-transaction based

formats. IAB Europe has included newsletter advertising, solus email,

mobile advertising and in-game advertising in this category where

countries have measured these formats.

Newsletter is defined as text or banner advertising that appears

around the unrelated editorial content of email newsletters. Solus

email is defined as an email sent by a media owner to an opt-in list

where the content of the email is determined by the advertiser.

Mobile advertising is advertising viewed or read on a mobile phone.

The Other category does not include email marketing or related costs,

defined as an email sent on behalf of an advertiser by an email list

manager.

Contents of ‘Other’ categoryAustria newsletter advertising only

Denmark supplied as ‘Other’ by FDIM

France newsletter advertising only

Hungary newsletter and mobile advertising

Italy mobile advertising only

Netherlands mobile and in-game advertising

Norway newsletter, in-game and mobile advertising

Romania newsletter advertising only

Spain mobile advertising only

Slovenia mobile advertising only

Sweden mobile advertising only

UK mobile, newsletter and solus email advertising


Appendix ii – The Participating IABs

IAB Austriawww.iab-austria.atPartner: Focus MR

IAB Belgiumwww.iab-belgium.beSource: CIM

IAB Chapter in Bulgaria (Interactive Association)www.iabulgaria.bg

IAB Chapter in Croatia (INAMA)www.inama.hrSource: PricewaterhouseCoopers

IAB Chapter in Denmark (FDIM)www.fdim.dkPartner: Deloitte

IAB Finlandwww.iab.fiPartner: TNS Gallup Oy Media Intelligence

IAB Francewww.iabfrance.comPartner: France Pub

IAB Chapter in Germany (OVK)www.bvdw.orgPartner: Nielsen Media Research

IAB Greece www.iab.gr

IAB Hungarywww.iab.huPartner: PricewaterhouseCoopers

IAB Irelandwww.iabireland.iePartner: PricewaterhouseCoopers Ireland

IAB Italywww.iab.itPartner: Assointernet/Nielsen Media Research

IAB Netherlandswww.iab.nlPartner: Nielsen Media Research

IAB Chapter in Norwaywww. inma.noPartner: ANFA

IAB Polandwww.iabpolska.plPartner: PricewaterhouseCoopers Poland

IAB Romaniawww.iab-romania.roPartner: PricewaterhouseCoopers Romania

IAB Russiawww.iabrus.ruPartner: Russian Association of Communication Agencies

IAB Chapter in Slovakia (AIM)www.aimsr.skSource: Mediana

IAB Sloveniawww.soz.si

IAB Spainwww.iabspain.netPartner: PricewaterhouseCoopers

IAB Swedenwww.iabsverige.seSource: IRM

IAB SwitzerlandSource: MediaFocus

IAB Turkeywww.iab-turkiye.orgPartner: Turkish Advertising Agencies Association

IAB UKwww.iabuk.netPartner: PricewaterhouseCoopers


Appendix iii – Methodology and adjusted data

Each national IAB runs its own annual online advertising spend

benchmark study and as the methodology for the studies varies

slightly by country, IAB Europe works with Screen Digest to ensure

that the findings in the European report are comparable. This

involves re-adjusting figures to allow for different original

methodologies, adjusting currencies where local data is not collected

in Euros and ensuring the year average exchange rate at 2009 has

38

Actual, adjusted and estimated data 2009Million Euros


Actual €10,798 Adjusted

€2,730

Estimated€1,173


been used. To provide data for previous year growth rates, the prior

year’s figures are also re-calculated using the current report’s year-

average exchange rate in order to give transparency over the growth

rate.

The chart below shows the amounts of estimated and adjusted datafor each country

Appendix iv – Estimates and adjustments

Austriaw Display discounted by 20% to adjust from ratecard to grossw Classifieds & directories estimated using ratiow Affiliates category deleted

Belguimw Ratecard data on display market supplied by CIMw IAB Europe applied a discount of 38% to estimate gross revenuew Other categories were estimated by IAB Europe using European

averages

Bulgariaw Display and classifieds & directories modelled by IAB Europe

based on figures provided by IAB Bulgariaw Search estimated using CEE ratio

Croatiaw Data grossed up by 20% for display and 25% for search booked

through agencies to adjust from net to gross

Denmarkw Classified figure adjusted to discount e-commerce revenue and

auctions using IAB Europe estimatesw Email marketing figures not included

Finlandw Figures for all formats increased by 15% to adjust from net to gross.w Search category includes directories

Francew Newsletter advertising estimated by IAB EU to be 20% of Email

Marketing category, this 20% was included in display, remainingemail marketing excluded

w IAB Europe estimated value of classifieds & directories, addedthis to value for directories

Germanyw Non transaction affiliate category has been moved in to displayw Display discounted by 60% to adjust from ratecard to grossw Classifieds & Directories estimated using Western Europe average

growth rate

Greecew Display discounted by 50% to adjust from ratecard to grossw No estimates for Classifieds & Directories

Hungaryw No adjustments needed

Irelandw No adjustments neededw Note that the data from IAB Ireland was only available for

publication end July, and is therefore not included in the overalltotal or any other aggregated data included in this report

Italyw Email marketing excluded

Netherlandsw Affiliates incorporated into display and transaction based

revenues removed (estimated to be 60% of affiliate revenue).w In-game advertising moved from display to ‘other’w Display and ‘other’ grossed up by 15% to adjust from net to gross

Norwayw Newsletter advertising and mobile spends included in ‘other’

Polandw Mobile grossed up by 15% to adjust from net to grossw Email marketing deleted

Romaniaw Online video and contextual advertising, non transaction based

affiliate and integrated content were added into displayw Solus email was added to ‘other’w Classifieds & Directories estimated using CEE growth rate applied

to 2008 figure

Russiaw Classifieds & Directories estimated using average CEE market share

Slovakiaw Sponsorship, slotting fees and rich media added in to displayw Display grossed up by 12.5% to adjust from net to grossw Lead generation and email marketing values excluded

Sloveniaw No adjustments made

Spainw Classifieds extracted from display using IAB Europe estimate and

moved into classifieds and directories category w 10% agency commission for display and mobile to adjust from net

to gross

Swedenw Transaction related affiliate marketing deducted from displayw 8% decuducted from display to eliminate transaction related

paymentsw 10% deducted from search to eliminate SEO from reported search

total

Turkeyw Value grossed up by 15% to adjust net to grossw IAB Europe estimated split between display and search and added

estimated classifieds and directories, applying average growthrate to 2008 value

The UKw Newsletter advertising moved from display to ‘other’


Screen Digest is the pre-eminent firm of industry analysts that has been

covering global media markets for over 30 years. Headquartered in London,

with offices in New York and Monterey, California, the firm employs a team

of 40 specialist analysts covering digital media, advertising, film, television,

broadband, mobile, cinema, home entertainment and gaming in up to 60

markets worldwide. A comprehensive suite of online services and reports

provide the information and analysis that hundreds of media companies

worldwide base their decisions on. Screen Digest's eight dedicated online

services have been developed to provide continuously updated data and

analysis on the global media markets, plus detailed forecasts on all

aspects of the media industry.

comScore is a global leader in measuring the digital world and the preferred

source of digital marketing intelligence. Through a powerful combination of

behavioral and survey insights, comScore enables clients to better

understand, leverage and profit from the rapidly evolving worldwide web and

mobile arena. comScore provides syndicated and custom solutions in online

audience measurement, e-commerce, advertising, search, video and mobile

and offers dedicated analysts with digital marketing and vertical-specific

industry expertise. Advertising agencies, publishers, marketers and financial

analysts turn to comScore for the industry-leading solutions needed to craft

successful digital, marketing, sales, product development and trading

strategies.

www.comscore.comwww.nielsen-online.com

The Nielsen Company is a global information and media company with

leading market positions in marketing and consumer information, television

and other media measurement, online intelligence, mobile measurement,

trade shows and business publications. The privately held company is active

in approximately 100 countries, with headquarters in New York, USA. For

more information, please visit, nielsen.

www.InSites.eu

InSites Consulting is a full-service consultancy, covering all fields of market

research. Using a range of quantitative and qualitative methods, they

provide clients with custom-made solutions and marketing

recommendations. We combine innovative approaches with proven and

highly accurate methods to design marketing strategies tailored to

individual clients’ needs. InSites partnered with IAB Europe to deliver the MC

DC Project, a goldmine of information about European online user behaviour

across 16 territories. Data from this project has been included in the

internet penetration data featured in this report.

www.warc.com

World Advertising Research Center (WARC) is a premier provider of

information and insight to the global marketing, advertising, media and

research industries. WARC, its internet service, is the world's largest single

source of marketing insight , while its publications and conferences have

strong reputations established over many years.

WARC is an independent company dedicated to recognising and promoting

marketing excellence and effectiveness. Partnerships with the world's

leading industry bodies, together with its own in-house editorial teams,

position WARC as a unique information provider.

www.screendigest.com

WARC

Appendix v – Our research partners


Special thanks

With sincere thanks to all the contacts at the national IABs who have supported the

production of this report by supplying and explaining their data to IAB Europe and to our

corporate members who provided quotes that have been used throughout this report.

Also special thanks to our research partners for supplying internet penetration figures,

WARC for their total media figures, our members comScore and Nielsen Online for audience

measurement figures and the analysts at Screen Digest for their insight, commentary,

forecasts and support.

Contact details

IAB Europewww.IABEurope.euAlain Heureux

President, IAB Europe

[email protected]

Catherine Borrel

Research Manager, IAB Europe

[email protected]

+44 (0) 7870 78 12 60

Lucy Green

Press Relations, IAB Europe

[email protected]

+44 (0) 7817 69 83 66


iab europe ad ex 2009

Documents

display advertising

search advertising

brand advertising

advertising format

european advertising

digital advertising

southern europe

european markets