The #1 Digital Nation.

The UK Success Story Guy Phillipson

CEOInternet Advertising Bureau

Today’s Presentation…

1. The BIG numbers

2. 2005 – The Five Point Plan for growth

3. 06/08 – web 2.0, Networks and branding

4. 09/10 – TV and online: Better Together

5. 11/12 – Mobile First

6. Programmatic – Greater with Data

7. Today – Defining the future of Advertising

Digital – Drives the UK Economy

£150 Billion

($240 Billion)

8.5% of UK GDP

A nation of eShoppers

•15% of non-food

purchases brought

online or Mobile

•Highest spend per-

capita worldwide

Digital = 34% of a £17.8 billion market (est)

*Digital = Online, Mobile and Tablet. Includes VOD and digital news/ magazine brands revenue.

TV & Radio – includes TV and radio sponsorship revenue.

SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC

2. 2005-The 5 Point PlanIAB becomes a Free resource for Advertisers

CEO’s 100 day IAB review…Guy Phillipson

21st April 2005

My listening campaign…

When I joined the IAB, I stated that we would

have to streamline our activities to be more

effective. Beyond that, I couldn’t answer all

the questions from members and journalists;

so I set out to interview our customers – the

advertisers – and their input has helped

enormously to shape this plan.

Advertisers split into three types…

Sceptics

Converts

Experts

Where is Online on Marketing Director Agenda? (on a scale of 1-10)

• Sceptics: 2

Yet to find a real use for it. No-one searches for their products

by name and no-one buys them online. Get the telly right and

the Marketing Director’s happy

• Converts: 5-6

Increasingly important as they understand how their customers

behave, gather knowledge, shop around and buy Online. Some

still consider Online predominantly a youth medium

• Experts: 8-10

Digital is an integrated part of Marketing Structure. Builds

customer relationships, increases sales, saves money – not just

CPA, but cuts operations costs, too

Our mission…

To help marketers find the best

role for online advertising, to

engage customers and build their

brands

Our ambition…

To put online on the agenda of

every marketer in the UK

Online broke 4% in the second half of 2004

24.1%

22.1%

18.6%

14.4%

3.7%1.1%

5.2%

6.3%

Television

Press - Display

Press - Classified

Direct Mail

Directories

Outdoor

Internet

Radio

Cinema

Source: PricewaterhouseCoopers / Interactive Advertising Bureau / The Advertising Association / Radio Advertising Bureau / WARC

Internet

4.3%

Online overtook Radio!!

Results

The 5 Point Plan

BehaviourSearchBrand

E-commerce

The Big Industry Conference

IAB Engage

Where Bill Gates famously said…

“The future of advertising is the internet”

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3. 2006-08: Rich Media,

Brand Engagement, and Web 2.0

The Rich Media Roadshow

• A tour of Advertisers

• Showcasing Award –

winning creative

• With Agency creative

directors

• Brand Engagement in

Action

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Creative showcase winner: Axe “Feather”

• Viewed and played by 3 million in 4 weeks

• Cursor turns into feather to tickle girl

• Average dwell-time, 8.5 minutes.

• That’s brand engagement!

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Cross-media Brand Engagement studies

• Small cars

• Shampoo

• Soft drinks

• Department stores

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Modelling brand engagement metrix

Brand

Engagement

Fun

Is a fun car

Is a feminine car 24%

SafetyIs a safe car Is a reliable car

6%

Ad Salience

You see a lot of ads around

Do good advertising12%

Stature

Is a really reputable company

Is good name in car manufacturing7%

Function

Has enough space for my needs. Is easy to park

Is a nippy car 8%

ValueIsn’t too expensive to run. You get lots of extras with Is expensive compared to other similar cars

3%

Style

Is a car for someone like me

I like the shape of 40%

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Small Cars – the overall impact of

communications

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Small cars – By Medium

4%

18%

37%

40%

Online

Press

TV

Outdoor

Radio

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Web 2.0 brings Social Media

By 2008 70%of homes on

Broadband.

50% with

wireless routers

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Around 40% of Display via Networks

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Online only medium showing growth in

2008Year on year growth for 2008

Total advertising

market growth = -3.5%

21.9%

19.2%

11.7% 5.1%

3.2%

1.0%5.4%

13.1%

19.5%

Television

Press Display

Internet

Press Classified

Direct Mail

Outdoor

Directories

Radio

Cinema

2008 market share 19.2% (15.5% in 2007)

% share of revenues for January to December

2008

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by

PwC.

Data excludes unclassified figures.

Total advertising

market

£17.5bn

4. 2009/10 – Structural change as Recession bites hard!

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UK GDP dives to minus 6% YOY in Q2

2009

GDP Growth

Economy grows by 0.3% in Q4 2009

IPA Marketers’ Bellwether Q4 2009

• Total budgets revised down for the 9th quarter in succession

• But internet budgets were revised up for the 2nd quarter running

So…Prove online works (Again!)

Autos Finance FMCG

Campaigns: Auto, Finance and Packaged goods

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61% watch TV while online

47

143

36Second most popular

activity after eating

while watching TV!

Don'tEveryday

WeeklyLess often

Headline Finding

When TV and Online ads were used together, the average uplift across all brand metrics for all tested categories was:

+ 18% Points

For All Categories Across Softer Metrics

32

43

71

46

60

79

18

30

57

Finance category average Car category average FMCG category average

Seen TV only or Online only Seen Both Seen Neither TV nor Online

Base : 25-54 Responsible for insurance/credit cards (1,002)

% Agree ‘I feel I know this brand really well’

Uplift among

those exposed

to both TV +

Online :

+17%

points+8%

points

+14%

points

= Significantly higher

= Significantly

different to group

who’ve seen neither

TV nor Online

25 25

69

4551

77

19 18

56

Finance category average Car category average FMCG category average

Seen TV only or Online only Seen Both Seen Neither TV nor Online

Base : 16-34 ads main shoppers (1,004)

% Agree: ‘I am likely to buy/use this brand in the future’

+26%

points

Uplift among

those exposed

to both TV +

Online :

+20%

points

+8%

points

= Significantly different to group

who’ve seen neither TV nor

Online

= Significantly higher

As Well As Harder Metrics Such As

Purchase Intent

• % Agree: ‘I am likely to buy/use this brand in the future’

37

4953

65

29

39

FMCG category average Cadbury Creme Egg

Seen TV only or Online only Seen Both Seen Neither TV nor Online

FMCG: Purchase Frequency raised

considerably

Base : Cadbury Creme Egg sample of 16-34s main shoppers (501); Q24

Uplift among those

exposed to both

TV + Online :

+16% points+16% points

= Significantly

different to group

who’ve seen

neither TV nor

Online

= Significantly

higher

% Agree: ‘I am likely to purchase more frequently’

Big Industry News in H1 2009…

5. Mobile First. IAB launched fully staffed mobile dept in 2008

Three Device Lives: tablets in context

Each device has its moment during the day- the

tablet particularly during the evening

0%

5%

10%

15%

20%

25%

30%

35%

Night Time 1-3am

Early Morning4-6am

Morning 7-9am

Late morning10am-12am

EarlyAfternoon1pm-3pm

Afternoon 4-6pm

Early Evening7-9pm

Late Evening10-12pm

% o

f In

tera

cti

on

s

Day in the Life of Device Usage - Weekday

Desktop Mobile Tablet

Base (number of check-ins): Desktop & Laptop 436 / Smartphone & Mobile 1544

Different formats have different strengths

A Full Page Interactive I

B MPU Interactive

C Full Page Interactive II

D Leaderboard Interactive

E MPU Dynamic

F Leaderboard Dynamic

G Full Page Static

H MPU Static

I Leaderboard Static

Size of bubble represents

% who recall seeing ad

A

C

B

DE

F

G

H

I

BORING/ ORDINARY

ENGAGING / FUN

UNIQUE / MEMORABLE

ANNOYING / IRRITATING

Full page

MPU

Leaderboard

Source: IAB Tablet Ad Format Study July 2012

The shift to mobile continues

Source: comScore

Page view July 13

Penetration

Wake up call for Advertisers!

6. Greater with Data.

The emergence of Progammatic

The Evolution of Display Advertising

Confidential

UK RTB Market gaining share of the total display market at a great pace

48

5,5%8,4%

13,5%16,8%

20,2%

24,9%

29,3%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

2011 2012 2013 2014 2015 2016 2017

UK RTB Market % Display Advertising

Source: IDC, 2013. Display Ad RTB Sales include all online and mobile display ads

Even Consumers become participants

Only 4%

of women

feel

beautiful

Dove video

http://www.youtube.com/watch?v=lg_jbSP-F2o

7. IAB UK Today

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“Defining The Future of Advertising”

Digital Still Driving the market

*Digital: Like for like growth (actual growth). Includes broadcast VOD and digital news/ magazine brands

revenue

SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC

Year on year change:

Digital shows sustained quarterly growth

*Digital: Like for like growth (actual growth). Includes VOD and digital news/ magazine brands revenue

SOURCE: IAB / PwC Digital Adspend H1 2013 & WARC

Packaged Goods is now biggest spender!

SOURCE: IAB / PwC Digital Adspend H1 2013 based on 43% of total digital display revenues for H1

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Continued double digit growth forecast

…And the success story

continues!

Thank you!

Research & more>>www.iabuk.net

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