mobile ad trends in france and germany - emarketer - 2013 may

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Mobile ad trends in France and Germany - eMarketer - 2013 May


  • MOBILEAD TRENDS IN FRANCEAND GERMANY Momentum Builds, as Multinationals Lead the Way MAY 2013 Karin von Abrams Contributors: Victor Aka,Tobi Elkin, Natalie Marin-Sharp Read this on eMarketer for iPad
  • MOBILE AD TRENDS IN FRANCE AND GERMANY: MOMENTUM BUILDS, AS MULTINATIONALS LEAD THE WAY 2013 EMARKETER INC. ALL RIGHTS RESERVED2 CONTENTS 3 Overview: Mobile Advertising in Western Europe 10France 15Germany 20Conclusions 21 eMarketer Interviews 21 Related Links 21 Editorial and Production Contributors EXECUTIVE SUMMARY The UK remains by far the largest mobile advertising market inWestern Europe, and eMarketer estimates it will account for nearly 53% of mobile internet ad spending in the region this year. By comparison, France and Germany will represent 12% and 6.8%, respectively, of the $2.92 billion mobile ad spend total. Yet those shares are beginning to add up to serious money, with $349 million projected for Germany and nearly $200 million forecast for France in 2013.Within five years, mobile ad spending is expected to reach $1.8 billion in Germany and $792 million in France. As smartphone and tablet penetration rises, consumers in France and Germany are growing more accustomed to seeing ads on these devices. Familiarity generally breeds acceptance, and mobile ads prompt many recipients to research or purchase. For their part, advertisers increasingly recognize the need to reach and engage consumers via mobile channels, if only to prevent their competitors from doing so more quickly or effectively. So far, though, planning and execution of robust mobile strategiessuch as mobile-optimized websites and high-spec campaigns that really pack a punchhave been largely restricted to megabrands that can afford to risk the investment and buy the talent that helps ensure success. KEY QUESTIONS How quickly are mobile audiences expanding in France and Germany? How much will advertisers spend on mobile platforms in France and Germany this year? What are the distinctive features of the mobile ad markets in France and Germany? How do mobile phone users in France and Germany feel about ads delivered to their mobile phones and tablets? millions Mobile Internet Ad Spending in France and Germany, 2013 & 2017 2013 $349 $198 2017 $1,800 $792 Germany France Note: includes display (banners, video and rich media) and search; excludes SMS, MMS and P2P messaging-based advertising; includes ad spending on tablets Source: eMarketer, April 2013 156659
  • MOBILE AD TRENDS IN FRANCE AND GERMANY: MOMENTUM BUILDS, AS MULTINATIONALS LEAD THE WAY 2013 EMARKETER INC. ALL RIGHTS RESERVED3 OVERVIEW: MOBILE ADVERTISING IN WESTERN EUROPE Usage of mobile devices such as smartphones and tablets is skyrocketing inWestern Europe, but ad spending on mobile platforms remains disproportionate to the size of the audience. eMarketer calculates that mobiles share of 2012 digital ad spending was very smallless than 5% in both France and Germany, compared with 6% on average across Western Europe.The consultancy Capgemini estimated the proportion to be even lower: just 1.8% of all digital ad spending in France last year. While most advertisers are now aware of the need to address mobile consumers, actual spending is lower than one might expect, given the level of mobile engagement. In terms of ad spending on the mobile web, Germany is emergingvery graduallyfrom the shadow of the UK.The UK remains far larger than any other Western European market and is expected to account for 52.5% of mobile internet ad spending in the region in 2013. Nonetheless, firms in Germany will invest an estimated $349 million this year in mobile ads, and those in France will spend nearly $200 million. Fueled by a bigger population and better economic health than other nations in the region, Germany will claim an increasing share of spending between now and 2017, while Frances and the UKs will decline gradually through 2015 and 2017, respectively. millions Mobile Internet Ad Spending in Western Europe, by Country, 2011-2017 UK* Germany France Italy Netherlands Sweden Norway Denmark Spain Finland Other Western Europe 2011 $323 $112 $87 $63 $45 $21 $23 $26 $21 $10 $50 $780 2012 $806 $208 $130 $104 $78 $57 $50 $45 $36 $20 $90 $1,622 2013 $1,532 $349 $198 $168 $129 $96 $84 $70 $62 $33 $199 $2,920 2014 $2,451 $566 $295 $252 $187 $144 $126 $104 $102 $50 $366 $4,643 2015 $3,554 $879 $417 $365 $268 $195 $183 $146 $162 $71 $632 $6,872 2016 $4,621 $1,286 $578 $470 $372 $244 $238 $190 $252 $88 $939 $9,277 2017 $5,684 $1,800 $792 $588 $502 $288 $281 $237 $378 $102 $1,318 $11,968 Note: includes display (banners, video and rich media) and search; excludes SMS, MMS and P2P messaging-based advertising; includes ad spending on tablets; numbers may not add up to total due to rounding; *eMarketer benchmarks its UK mobile ad spending projections against the IAB UK/PwC data for which the last full year measured was 2011 Source: eMarketer, April 2013 154868 Multinational firms and top brands are responsible for the bulk of mobile ad spendingand innovation in both France and Germany. For example, most campaigns reaching the final stages of the Cannes Mobile Lions Awards in 2012 came from global players with deep pockets, such as sportswear manufacturers Nike and adidas; mobile service providers Nokia and Orange; automakers including Audi, Ford Motor Co., BMW and Volkswagen; consumables giants such as Procter & Gamble, Kraft Foods, McDonalds andThe Coca-Cola Co.; and media brands such as MTV Networks. Economic factors probably contribute to this situation; most European economies are struggling to emerge from a severe downturn, and many advertisers with limited budgets have been slow to spend money on mobile when it represents unknown territory in marketing terms and challenges their existing skill sets. Financial questions apart, staking a claim to mobile competence is a priority for many major advertisers, according to Paul Amsellem, CEO of Mobile Network Group/Bemobee: These brands are investing a lot of money to be sure they will be big in mobile. Weve done campaigns for Nissan, Renault and McDonalds. Like several luxury brands, including Chanel and Dior, all these brands are making a move.They are now big players in mobile in France. Web users in France and Germany may be less likely to access social sites via mobile devices than users throughout the rest of Europe. As a result, social networks dont yet attract as large a proportion of mobile ad expenditure as they do in the UK. But some research suggests that relatively slow adoption of social networking in the two countries is now picking up speed. If that is true, advertisers in France and Germany will soon be following their UK and US counterparts onto Facebook and other social sites, aiming to capitalize on the social-mobile link.
  • MOBILE AD TRENDS IN FRANCE AND GERMANY: MOMENTUM BUILDS, AS MULTINATIONALS LEAD THE WAY 2013 EMARKETER INC. ALL RIGHTS RESERVED4 The arrival of rich media is fueling a further surge in mobile ad spending. Historically, much mobile advertising was text-based or composed of static, rather unimaginative graphic elements. With millions of consumers now using smartphones and tablets with high-resolution screens and robust data packages, advertisers have a chance to engage them with more appealing visuals, including video.Top brands are leading the way, but all marketers targeting mobile audiences will face pressure to move in the same directionor risk losing brand value and market share. As Jens Oberbeck, general manager for Germany, Austria and Switzerland at mobile advertising firm InMobi, commented in an interview with GIGA: I believe that one of the driving factors behind mobile ads will be rich medialarge animations and videos, seen not just as pre-rolls before other videos, but as ads in their own right. Wider use of HTML5 and responsive design will also boost mobile advertising in Europes largest markets. At the moment, the variety of available mobile handsets and their technical specifications is an obstacle for many brands. For example, advertisers often choose to target either Android or Apple devices because devising ads for both operating systems (OSs) can be costly and time-consuming. HTML5a markup language for internet content designed to support advanced multimedia and ensure better interoperabilitywill help overcome some of these hurdles.The same is true of responsive design, a programming approach that aims to deliver optimal text and graphics to many different devices and screens, removing the need to program separately for each device type.These advances will enable advertisers in the region to reach more mobile consumers than ever before, with far greater efficiency. THE GROWING MOBILEAUDIENCE eMarketer estimates that 340.3 million people in Western Europe will use a mobile phone in 2013, including 66.8 million in Germany and 51.4 million in France. In 2015, the number of mobile phone users in the region is expected to pass 351 million.There will also be 161.1 million people in Western Europe who use smartphones this year. Mobile devices account for an ever-greater share of mobile web traffic in key European markets. In a November 2012 study from InMobi, 40% of mobile web users in France said their internet usage was evenly split between a mobile device and desktop or laptop. But more than one-quarter (26%) said they went online mostly via mobile, and 14% said their mobile phone was their only web access device. The pattern was similar in Germany: 36% of mobile web users said their internet access was divided between mobile and a desktop or laptop, 25% said they used a mobile device more often, and 17% went online only via mobile. In b


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