2011 mobile adspend full year results

7 April 2023iabuk.net/contact

IAB/PWC Mobile Adspend Study

Agenda

•Context: What happened in 2011?•Methodology•IAB/PWC Mobile Adspend Data 2011•What does this mean for the future?

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Context: What happened in 2011?

Some of the drivers in 2011

•Smartphones

•Mobile internet usage

•M-Commerce growth

•Tablet impact

•Search acceleration

•Mobile gets investment

Smartphones dominate connected devices

Source: GfK Retail and Technology UK sales data

Media GatewaysIPTVsTabletsSmartphonesNetbooksLaptopsDesktops

Q406 -Q307 Q407-Q308 Q408-Q309 Q409-Q310

5 Million

10 Million

15 Million

20 Million

25 Million

30Million

Q410-Q311

Smartphones reach a tipping point

64%feature phone Jan 2010

36%smartphone Jan 2010

Source: comScore Mobilens 3 Month average Jan 2010

Smartphones reach a tipping point

47%feature phone Jan 2011

53%smartphone Jan 2011

Source: comScore Mobilens 3 Month average Jan 2011

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

Mobile Internet audience grows again

8.5m

24.6m

Source: comScore Mobilens

Mobile internet growth accelerates

2007 2008 2009 2010 2011

0.06m

2.4m

3.5m

4.6m

5.5mAdditional mobile internet users by year

Source: comScore Mobilens

M-Commerce accelerates

% Mobile visits to e-retail sites up from

2.6% to 8.2% 2011 vs 10

Average transaction up from £12.20 to

£17.49 in 2011

24% have bought on their phone

http://www.iabuk.net/research/library/m-commerce-consumer-research-2011

http://www.imrg.org/ImrgWebsite/User/Pages/Press%20Releases-IMRG.aspx?pageID=86&parentPageID=85&isHomePage=false&isDetailData=true&itemID=7051&specificPageType=5&pageTemplate=7

http://www.iabuk.net/research/library/m-commerce-consumer-research-2011

restaurant information

gambling services

real estate listings

electronic payments

general reference

shopping guides

online retail

health information

57%

59%

60%

71%

85%

88%

106%

195%

Traffic growth is fastest in commerceG

row

th i

n m

ob

ile

traf

fic

Source: comScore Mobilens Aug 10- Jan 12

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Tablet growth is surging

Jun Jul Aug Sep Oct Nov Dec Jan2.5

3

3.5

4

4.5

5

Mill

ion

s o

f iP

ad o

wn

ers

72% growth in only 7 months

Source: comScore Mobilens July 2010 - Jan 12

Mobile search starts to be mainstream

Source: Latitude Mobile report 2012 http://www.latitudegroup.com/mobile/2012-latitude-mobile-report-2/

13.4% of paid search

clicks

come

from mobile

http://www.latitudegroup.com/mobile/2012-latitude-mobile-report-2/

http://www.latitudegroup.com/mobile/2012-latitude-mobile-report-2/

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Regulation

Social Media

Sub Groups

Building Brands Online

Social Media Training and IAB auto events

Any Other Business

And revenues start to accelerate

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“We're also seeing a huge positive revenue

impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.”

Larry Page, CEO,Google13/10/11

VCs ramp up mobile spending

2005 2006 2007 2008 2009 2010 2011

$29m

$92m

$161m$115m

$138m $123m

$592m

Source: Rutberg & Company, Global VC Investments in Mobile Marketing & Advertising

2010-2011 growth per media

Press Cinema Out of home

Direct Mail

TV Radio Internet-7.0%

-1.1%

1.1% 1.1% 1.7%

3.8%

10.6%

Source: % change 2010-2011 estimates from The Advertising Association/Warc Expenditure Report

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Methodology

The background…

• The IAB has been working with PwC since 1997 to survey the value of the online advertising market

• These figures have become the industry standard for measuring advertising spend

• We have started measuring mobile adspend in 2008 – this is the fourth year we have surveyed the mobile market

Reported vs estimated survey data

Reported data

• Survey includes revenues submitted by 28 participants

• The figures are drawn up on the basis of site declaration and have not been not verified

Estimated data

• Study includes estimation of search revenues as well as Admob, Millennial, Apple, Mojiva and Google Display Network display revenues, based on views from the IAB/PWC Mobile Adspend Advisory Committee

• Except for above, reported figures have not been adjusted for organisations that did not participate in survey

Adjustments

• Figures are adjusted for double-counting, based on information provided by survey participants

• Total advertising revenue is reported on a gross basis

Like for like growth reporting

• Like-for-like growth rates only include revenues from companies that participated in both 2010 and 2011 studies

• We have also included revenues from new participants where 2010 revenues were reported in addition to 2011

Adjustments and like-for-like

Mobile advertising definition

Reported Mobile data

• Only media spend reported to ensure fair comparison to other media including

– Display advertising

– Search

• Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues like app production

Reported Tablet data

• Advertising that has been specifically served on a tablet device, accessed via 3G or wifi

• Reported separately, not included within the overall Mobile adspend figure

Banner ad

Pre/post roll

Search

In SMS / MMS

TabletNew!

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28 Submitters for 2011

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IAB/PWC Mobile Adspend Data 2011

Source: IAB / PwC mobile ad spend survey 2010

2011 total mobile ad spend breakdown


Most formats seeing growth


2011 total mobile display breakdown


2011 Rich Media Spend

*Based on a sample of 15 participants and 2 estimated companies, accounting together for c.85% of total standard display revenue


In app revenue outweighs on browser

*Based on a sample of 20 participants and 2 estimated companies (from publicly available information), accounting together for c.68% of total display revenueSource: IAB / PwC mobile ad spend survey 2011

Display revenue growth by quarter


Industry sector display market shares

• Finance 16%• Consumer Goods 15%• Entertainment & the media 12%• Travel & transport 10%• Retail 10%

Top 5 Online Advertisers H1 2011


A focus on entertainment


Change in industry sector display market shares 10-11


Tablet display adspend

* This figure relates to tablet specific advertising only (ie not including internet advertising displayed on a tablet by default). It is based on revenues reported by companies participating in the online and mobile surveys who were able to report this figure separately, and can thus underestimate the overall size of the table dedicated advertising spendSource: IAB / PwC mobile ad spend survey 2011

Mobile display advertising growth


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What does this mean for the future?

Mobile’s growth echoes online 10 years ago

Source: IAB / PWC Adspend,, comScore Mobilens, ,

2011201020092008

8.6m

11m

14.5m

24.6m

Mon

thly

onl

ine/

mob

ile a

udie

nce

(MM

)

Yea

rly a

dspe

nd (

£MM

)

1998 1999 2000 20010

5

10

15

20

25

0

50

100

150

200

250

8.3m

11.8m

15.8m

18.1m

£19.4

£51.0

£153.1

£165.7

£28.6

£37.6

£83.0

£203.2

Monthly mobile audience Monthly online audienceOnline adspendMobile adspend

Mobile is making its impact on the media pie

Cinema, £182m

Mobile, £203m

Radio, £436m

Out of home, £889m

Direct Mail, £1,731m

Press, £4,006m

TV, £4,150m

Internet, £4,531m

Source: 2011 estimates from The Advertising Association/Warc Expenditure Report., IAB/ PWC Mobile Adpsend Study 2011

0

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016

£ millions

FirstPartner UK Mobile Ad Spend 2012 to 2016

Messaging

Mobile Content

Search

Display£449m

£727m

£962m

£1088£1185m

copyright FirstPartner 2012www.firstpartner.net

£203m

FirstPartnerFirstPartner

Predictions that mobile cold be worth over £1bn in 2015

1998 1999 2000 2001 2002 2003 20040.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

£19.4m

£51.0m

£153.1m

£165.7m£196.7m

£465.0m

£825.1m

£28.6m

£37.6m

£83.0m

£203.2m

Monthly online audience

Will mobile follow the same path as online adspend in coming years?

2011201020092008 2012? 2013? 2014?

Source: IAB / PWC Adspend,,

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Disclaimer

The IAB retained PricewaterhouseCoopers LLP (the UK firm) (‘PwC’) to compile the mobile adspend figures collected by the IAB from its members in 2011 and to deliver to the IAB the topline figures collated from this review; PwC has not verified the information which it received from the IAB, and

provides no opinion or other form of assurance with respect to such information.

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, neither the Internet Advertising Bureau UK (the ‘IAB’) nor any of the IAB’s

contributors/subcontractors accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information

contained in this publication or for any decision based on it.

2011 mobile adspend full year results

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Transcript of 2011 mobile adspend full year results