Brussels, 29 June 2016 – IAB Europe, in collaboration with IHS Markit, has today published the eleventh AdEx Benchmark 2016 Report1 – the definitive guide to the state of the European online advertising market. The report reveals the key milestones culminating in this year’s market value of €41.9bn. Having overtaken TV ad spend for the first time in 2015, online advertising now leads TV by over €7bn.
2016 was the seventh consecutive year of double-digit growth for online advertising which continues to be driven by mobile and video. Core to this growth is creative innovation allowing more seamless integration of mobile and video ad formats into media content, as banner overlays are replaced by context-adaptive and native formats.
Online advertising again compensated for declines or slower growth in other media to drive a historical all-media advertising market high in Europe of €112.4bn.
Top 10 Rankings – mobile display spend
Top 10 Rankings – video spend
Top 10 Rankings – year-on-year growth
Townsend Feehan, CEO of IAB Europe said, “The eleventh edition of the AdEx Benchmark report reveals that digital has strengthened its position as the primary medium for advertising in Europe, as advertisers follow users online. With this increasing share of advertising spend and user time comes increased responsibility. IAB Europe is invested in reinforcing advertiser confidence in the new opportunities, notably with our European viewability certification initiative, and in helping companies across the delivery chain provide ever more transparency and choice to users about how their data are processed in the context of digital advertising and for analytics. We are also working at a global level, via the Coalition for Better Ads, to address the user experience issues that cause ad blocking. It is an exciting time to be in online advertising, and the AdEx Benchmark numbers show the continuing opportunity despite the challenges.”
Daniel Knapp, Senior Director TMT at IHS Markit, said “Mobile and video are the powerhouses driving the European online advertising market as we enter a post –desktop banner advertising world. The rules and practices of online advertising have changed with these new formats and screens gaining ground, and our study shows that marketers’ and publishers’ efforts to innovate both in terms of measurement, delivery, targeting, and creative are paying off. At the same time, our 2016 data shows that search and classifieds & directories have entered a period of rejuvenation with accelerating growth rates. Classifieds & directories is fueled by industry consolidation and search benefits from better adoption of mobile and maps as search interfaces.”
Qingzhen Chen, Senior Analyst at IHS Markit, added “In 2016, CEE markets contributed more to European industry growth than ever before. We saw eight countries in the region grow above 15%. Markets like Poland, Czech Republic and Turkey are also among the leaders in mobile and video advertising. At the same time, mature Western European markets remain in healthy shape, with the UK and key Nordic markets growing above European average despite their already high online ad spend per capita.”
The report incorporates data from the following online advertising formats:
Additional segmentations are:
The report treats video and mobile display as subsets of display, and mobile search as a subset of search.
The report can be accessed here.
A webinar providing insight and comment from industry leaders on the results will take place on July 18th at 15.00 CEST / 14.00 BST. Register here.
For more information, please contact:
About the AdEx Benchmark study
The data has been compiled by IAB Europe based on information provided by the national IAB offices around Europe. It is then processed and analysed by IHS Markit. The report includes market size and value information for 2016 for the following markets: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Norway, Poland, Slovenia, Romania, Russia, Spain, Slovakia, Serbia, Turkey, Sweden, Switzerland and the UK. The data represents the calendar year 2016 January- December. This is the eleventh AdEx Benchmark study which began in the calendar year 2006. Display includes PC-based and mobile banners, rich media and video formats.
About IAB Europe
IAB Europe is the leading European-level industry association for the online advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers and to the market, and developing and facilitating the uptake of harmonised business practices that take account of changing user expectations and enable digital brand advertising to scale in Europe.
In a legislative discussion that already has an aura of déjà vu coming so soon after four years of discussion on the General Data Protection Regulation (GDPR), it may seem unlikely that there could be anything new to discuss, especially where cookies are concerned. But a lunchtime roundtable discussion in the European Parliament on Tuesday, June 20 , hosted by the Developers Alliance and IAB Europe surfaced a few points that, while not entirely new, have not received quite enough airtime thus far.
Four points are worth highlighting.
Some EU institutions do not want credit for killing the Internet
A question that is made more urgent by the emergence of MEP Marju Lauristin’s draft report for the European Parliament’s lead Committee on Civil Liberties, Justice and Home Affairs (LIBE) is whether the future ePrivacy Regulation will kill the online advertising business model that currently sustains the vast majority of content and services on the Internet, or just handicap it. As publishers sitting around the table pointed out, the European Commission’s original proposal would, arguably, only impair the delivery of data-driven advertising by making interactions between digital services and users subject to their prior consent as defined in the GDPR – with all the constraints that imposes. This is already a huge contrast to the GDPR, which would permit personal data processing under consent or five other legal grounds for lawful processing. The proposals in MEP Lauristin’s draft report, however, would effectively take consent off the table too. Notwithstanding the exhaustive information disclosure requirements accruing to data controllers under the GDPR, consumers are deemed unable to give informed consent and should have the choice taken out of their hands by the law.
The new development, at least in this observer’s view, was that some EU institutional stakeholders do not to want to be the cause of damage to the European data-driven ecosystem, and repeatedly – even emotionally – insisted that this was not the objective of the proposed ePrivacy Regulation. This may suggest that the extreme approach being pursued by Lauristin – with the backing of European data protection authorities and consumer groups – might be corrected in trilogues, even if it were to feature in the European Parliament’s first reading position.
Data-driven advertising is critical for publishing quality content online
During the roundtable, publishers reaffirmed the pivotal importance of advertising to their ability to create content. At the same time, they countered suggestions that random or contextual ads could be the way forward with insights into the revenue differentials between interest-based ads and other forms of digital advertising. As IAB Europe and others have repeatedly stated, interest-based advertising generates three times more revenue compared to non-targeted forms of advertising, based on their relative effectiveness to advertisers in reaching their target audience. If interest-based advertising becomes either practically impossible or legally forbidden in Europe, global brands will not invest in inferior ad-products. Instead, they will take their advertising euros elsewhere – either to other media or other continents.
Importance of data collection for measurement and analytics companies
In addition, speakers from measurement and analytics companies stressed that services rely on data collection to understand how users interact with their services, and to derive important learnings about how to improve their business offerings. Requiring users to consent to the collection of such analytics data by expert third party measurement and analytics providers would deprive European services of critical information enabling them to build innovative, globally competitive web and mobile services.
Browsers will not cure cookie fatigue
Several publisher and technology company speakers pointed out the risk of unintended consequences from inserting browser manufacturers as ‘gatekeepers’ between publishers and other online service providers on the one hand, and their readers or users on the other. There is genuine alarm at the prospect of the European Union wrestling away the relationship between publishers and their readers to instead hand it to a few browser manufacturers.
There is also concern that the current wording of the proposed regulation would prevent publishers, both technically and legally, from inquiring if a reader whose browser is set to reject cookies or similar technologies could reconsider their choice, since the creation of quality content is expensive and third-party advertising provides the publisher with a critical revenue stream. Here there was also some relief on offer, with the European Commission apparently prepared to consider supporting amendments that would clarify that the law does not intend to prevent online service providers from asking users to consent to a proposed value exchange and turning away those users who do not agree to their offer: interest-based data-driven ads and/or allowing data collection for the improvement of a service in return for free content and services.
The inevitable follow-up discussion on where this left the European Commission’s high-profile public undertaking to rid Europe of cookie banners was left to another day. IAB Europe and its partners from the data-driven ecosystem, will be hosting more events in the course of the legislative process. The next event is planned for September 2017.
IAB Europe, in collaboration with IHS Markit, has published the eleventh AdEx Benchmark 2016 Report1 – the definitive guide to the state of the European online advertising market. The report reveals the key milestones culminating in this year’s market value of €41.9bn. Having overtaken TV ad spend for the first time in 2015, online advertising now leads TV by over €7bn.
2016 was the seventh consecutive year of double-digit growth for online advertising which continues to be driven by mobile and video. Core to this growth is creative innovation allowing more seamless integration of mobile and video ad formats into media content, as banner overlays are replaced by context-adaptive and native formats.
Online advertising again compensated for declines or slower growth in other media to drive a historical all-media advertising market high in Europe of €112.4bn.
Click below to download the report and click here to see the Press Release. You can also register for the AdEx Benchmark 2016 webinar here.
Watch the Highlights of IAB Europe's annual Interact 2017 conference in Amsterdam on 23-24 May 2017:
Watch it here.
Join this webinar to gain insight into the results of the AdEx Benchmark 2016 report, the definitive guide to the state of the European online advertising market, including trends, formats and cross-market comparisons. Register here.
European online advertising continues to deliver double-digit growth and has surpassed €40bn in total revenue. Having overtaken TV ad spend for the first time in 2015, online advertising now leads TV by over €7bn. This webinar will dive deeper into trends, formats and market by market growth across Europe.
Daniel Knapp, Senior Director TMT at IHS Markit, IAB Europe’s research partner, will present the report’s findings.
The presentation of results will be followed by a discussion between industry leaders commenting on the findings and their perspectives on future trends.
Attend this Webinar to find out more about:
The speakers are:
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| Daniel Knapp, Senior Director TMT, IHS Markit | Juliette Valains, Senior Strategy Executive, RTL Group | Tim Jones, International Research & Consumer Insights Lead, Oath and Chairman, IAB Europe Research Committee | Blake Cuthbert, Chief Digital Officer, OMD EMEA |
After registering you will receive a confirmation email containing information about joining the webinar.
The full report is now available for download here.
Interact 2017 Opening Keynote: Dominique Delport, Global Managing Director and Chief Client Officer for Havas Group
Over the past year controversy around Trust, fake news and brand safety has dominated the headlines: Dominique Delport discusses how these debates will shape the way we do business.
Watch it here.
Internet, leaving its mark on 21st century with its social, economic and technological dimensions, radically changed life styles, business paradigms and marketing and communication methods. Today it still does go on deeply affecting every aspect of life with its current position.
Internet and digital advertising, which take part in daily usage with websites, social media, search engines and mobile versions of all create an enormous ecosystem with the technologic infrastructure. Digital world, supporting youth employment by being fueled by the entrepreneurial intelligence, innovation and creativity, has become one of the building stones of economy.
Through digital or traditional media channels, in today’s world, advertising is making contribution to the economy from several perspectives. Besides the direct effects of advertising to the employment and economic output, developments in media and content-related and digital industries also have indirect effects to the economy of the country.
While gradually becoming prevalent and substituting the traditional channels, digital advertising, clearly appears as a key sector which creates value in a large variety of industries with the skills and technologies being utilized and developed within the context of advertising.
In such environment where technologies such as analytics, mobile, “Internet of Things” and “Big Data” shape the institutions, business models and sectors, it is expected that only the institutions and countries which will best comply with digitalization and ideally manage the change will also be the leading ones.
In this scene where the digital economy represents the 22.5% of the world economy, “Multiplier Effect of Digital Advertising Research” initiated by IAB Turkey, Ipsos Research and Consultance Inc. and the Faculty of Economics and Administrative Sciences of Boğaziçi University, aims to execute the effects of digital advertising ecosystem on economy as a whole.
Study differentiates itself by utilizing a “genetic algorithm” model which reaches to the optimal results by means of the combination of more than hundred thousand model.
In the study, online advertising’s total contribution to the economy has been calculated by utilizing 2012-2016 GDP data, platform-based media investments, population and unemployment data with Genetic Algorithm model by IPSOS.
The present report examines the relationship of digital advertising investments and economy between the 2011-2016 period and introduces the effect of these investments on economy with the increasing number of users:
You can browse the infographic or download the full report (in Turkish) below.
It’s arguable that the key factor in the downfall of Flash has been the meteoric rise of mobile video.
With UK consumers now spending nearly an hour with digital video every day, and half of that time on mobile, the quality of video experiences across devices has come to the fore. And so has awareness of the formats that are failing to pass muster, such as Flash.
Flash might once have been the top online media player, but its security issues, playback problems and capacity for draining battery power have long been frustrating for consumers and advertisers, especially on mobile. And that’s aside from the fact Flash isn’t supported by major mobile operating systems like iOS and Android. What’s more, Google also recently pulled support for the Flash Software Development Kit (SDK), suggesting a move to HTML5.
The reason behind the shift to HTML5 is clear: it’s simply a better tool for the interconnected age. The ability of HTML5 to build advertising content that can be instantly adapted to fit the dimensions of any screen — including mobile — makes it perfect for users accustomed to switching between devices, and the advertisers trying to engage them. With more versatile ads that work across screens, advertisers can enhance both campaign scale and impact.
So it is only logical that the IAB has made HTML5 a central element of its new Ad Portfolio and a key requirement for the video ad formats it contains. By stipulating that all ads in its slimmed down selection must be built in HTLM5 and capable of adjusting to aspect-ratio file sizes (as well as meeting its L.E.A.N principles), the IAB has set a more flexible template for digital advertising that will enhance ad quality and engagement. And with the addition of its video-specific updates, the IAB is set to transform the shape of mobile video ads too.
In addition to the Flash-based issues that will be solved by switching to HTML5, the standard will also address video file size. Videos currently require a substantial download size (usually at least 1.0MB), which can make a big dent in mobile data plans, as well as increasing battery usage. The new guidelines will minimise this data drainage via several measures: halting auto expansion, requiring user initiation for outstream video ads, , and ads are initially muted and pausable.
So, for consumers this will mean mobile video advertising experiences are characterised by lightweight, versatile content that adjusts to their screen preferences, rather than irrelevant and poorly adapted ads that absorb data, and inspire irritation.
Although adopting the portfolio will require a significant transition, it will be worth it. Mobile is the key driver of online ad spend in Europe and mobile video ad spend has already passed the £10 billion mark in the UK and if marketers want their swelling budgets to produce results, it will be vital to create higher quality ads.
Indeed, industry players have already taken steps to follow the example of smaller ‘snack-size’ video ads. Facebook, for instance, is testing short 15-second video ad formats for its Live broadcasts that only appear five minutes after streaming has started. At Sublime Skinz, we have also utilised innovative developments, such as the parallax effect, to ensure our M-SKINZ ads provide enticing yet unobtrusive experiences, as well as further enhancing our HTLM5 capability by acquiring Kpsule — a specialist in producing immersive rich media ads in any format.
Of course, the precise direction video advertising will take in the future is not yet known. But one thing we can be certain of is that it will involve HTML5 and more interactive, engaging ad types. And that means the time for brands to start adapting is now.
Starting tomorrow, the Maltese Council Presidency and the European Commission will hold the EU’s annual Digital Assembly in Valetta. It is worth taking a moment to contemplate the irony of the Commission co-hosting a high-level conference to “look ahead at how Europe and its partners around the world are preparing” for the coming digital transformation, while in a parallel universe in Brussels, DG CONNECT is defending a proposed Regulation on ePrivacy that would dismantle the Internet’s dominant business model, making access to information, entertainment and online services for consumers and small-businesses a pure pay-as-you-go proposition.
The ePrivacy proposal will make almost any interaction with a user’s device subject to the consent legal basis as defined in the General Data Protection Regulation (GDPR). Consent under GDPR comes with heavy baggage. If the site or online service needs to do any data processing beyond what is necessary to render the pages on the screen – for example, heaven forbid, to deliver interest-based advertising to keep the lights on and pay its staff – then arguably consent cannot be used.
And under the ePrivacy proposal, if consent is not available, then there is NO legal basis.
The proposed approach is so self-evidently disproportionate that hyperbolic justifications with little or no basis in fact are energetically adduced to defend it.
Thus, the ePrivacy proposal is supposedly necessary to protect consumers from “secret online tracking” – though the GDPR comprehensively and emphatically eliminates any scope for secret tracking.
Similarly, we are told that new rules are needed to protect privacy, as a distinct right from data protection – and yet in the same breath it is affirmed that all of the data covered by the ePrivacy proposal are personal data anyway.
The Commission promises the new rules will get rid of those annoying cookie banners, a boon to European internauts driven to distraction by constant interruptions. In reality, to be able to say with any certainty that users have given consent, banners are here to stay. If anything, the ePrivacy proposal will require them to be more annoying.
Finally there is the argument that consent is not new, as it has been required by the ePrivacy Directive since 2009. What is the digital advertising industry complaining about? Yet this too is at best a diversion, or half-truth. First, the GDPR already clearly regulates cookies and other online identifiers, so it was anything but inevitable that new cookie rules would need to be adopted to replace the 2002 Directive with anything but a repeal of the specific cookie rules. Second, only the Netherlands had a strict and enforced opt-in approach without alternative legal bases. An approach of only opt-in consent will be new to around 96% of EU citizens.
In the environment of hysteria over tracking that currently grips Brussels, where accessing free information online in exchange for seeing ads is seriously compared to selling one’s organs (EDPS Opinion 04/2017, page 7), the proposed solution is that consumers should pay for content. Subscription is morally preferable to digital advertising, whose supporters will simply need to come round to the realization that they are on the wrong side of history.
This presupposes a false dichotomy – advertising-based models versus subscription models – when in fact most media need both options at the same time, plus anything else they can think of to generate revenue in the difficult transition to digital. Yes, some citizens will be able to pay for some content and services. But no one will pay for everything. The inevitable outcome will be less revenue going to support media and other online content, leading to a general impoverishment of the information and online service landscape, and the emergence of a two-tier digital society in which those who can afford it will at least have access to that impoverished landscape, and those who cannot will have nothing.
So at least as far as ePrivacy goes, there will not be much to celebrate at Valetta – though the warm breeze and cocktails will provide a certain distraction from these uncomfortable truths.
In spite of all good intentions, the proposed ePrivacy Regulation (ePR) currently being discussed in the European Parliament will irrevocably clutter the field of digital privacy with a wealth of requests for consent that will result in users becoming just as blind to the content as they are to the current Cookie-acceptance popup.
There is no debate that your digital communication must be confidential and no one should be allowed to spy on you on the internet. This should not be bundled with an unreasonable insistence on being 100 pct. anonymous when you enter a public area or someone else’s domain.
Just as we don’t expect the clerk at a shoe store to ask for your permission to look at you and determine your age, your gender and what rack of shoes you are looking for before assisting you with your purchase, we shouldn’t be asking an ecommerce store to gain consent for the same level of service. In the proposed ePR legislation, your interest in shoes and your demographical information is being treated with the same sensitivity as your medical prescriptions and history.
Cookies are not dangerous. They cannot contain virus, malware or spy on you. But information about your online behaviour could be used in a way that you are not comfortable with or even to your disadvantage. To protect us from that we recently adopted the General Data Protect Regulation (GDPR) with very strict rules for processing personal data. This new legislation is entering into force in May of next year, and the entire online industry (and all other industries) are already preparing to get ready for the new requirements before the deadline. The fines for neglecting this would be quite staggering.
A positive feature about the GDPR is that it allows for companies to approach their existing customers with direct marketing and to process information about how people use a website in order to present them with related content - including advertising. This happens with all users being clearly informed of any data processing taking place and each user is entitled to detailed insight or to have the information corrected or deleted and to opt-out of any targeted advertising. There are very strict rules for sensitive data such as health or financial information and more flexible rules for processing less sensitive data such as web statistics and profiling user’s interests in products or subjects. This principle is referred to as a risk-based approach, and it makes a lot of sense from the user perspective.
Unfortunately, the proposed ePR legislation has an entirely different approach. It does not differentiate between personal or non-personal data, or between sensitive or non-sensitive information. It requires for a prior explicit consent before any information can be stored.
At first glance, this might seem quite reasonable. After all, why shouldn’t you be asked for permission beforehand if someone wants to process information about you? But the fact is, that it is not always in your best interest. First of all it will annoy the hell out of you to be constantly asked for your consent. No one will read the endless boring information, and everyone will just click yes or no after what seems most convenient in the given situation. And as we get used to saying yes to data processing with almost every single website we use, we will go blind to the actual content that we give our consent to, and the acceptance becomes so routine that we will end up accepting even the data processing where an actual informed consent should be expected.
Objectively what serves us all best is when data is used to provide us with better service, better products, more innovation, and relevant information in a way that respects and protects our privacy. However, realistically you as an individual are not able to determine which data processing would fulfil these requirements all the time. It is impossible for anyone to make an informed decision in all matters.
If you buy a car, you do not need to know how the motor works, the electronics, the airbag, the internal computers and stuff. You want the car manufactures to produce great cars, which live up to strict safety standards defined and audited by experts. The same logic applies to data processing. Let the data controllers (and processors) be responsible. How can this be achieved? The simplest way would be to apply the same legal grounds for data processing in the ePR that we just spent 4 years working on in the GDPR. But that would be almost too easy wouldn’t it?
Originally published on LinkedIn here.
How do advertisers best negotiate a myriad of new considerations for video – from the balance of premium and social to mobile formats, autoplay and the great sound on/sound off debate? We identify the key trends – and the brands getting online video right.
Slides are available here.
Keynote: Internet of Things: plenty of new digital touch points, or the end of advertising as we know it? Stephan Noller, Managing Director, uBirch
Slides HERE.
