Thursday, 21 May 2015

Digital Ad Spend hit €30.7bn in Europe in 2014; Mobile is 17% of display spend

"At the 9th edition of its annual Interact conference IAB Europe today announced that online advertising grew 11.6% to a market value of €30.7bn in 2014.
The AdEx Benchmark research – the definitive guide to the state of the European online advertising market – revealed that online advertising achieved double digit growth for a fifth consecutive year.
All markets participating in the study recorded positive growth and twenty markets grew double-digit. Mobile and video ad spend continued on their strong growth curves and are now a significant proportion of display and search ad spend.
Townsend Feehan, CEO of IAB Europe, commented “The AdEx Benchmark results highlight the importance of digital advertising for growth in Europe’s economy. We need to ensure that digital advertising enables the European digital sector to compete across the world.”
Display, Search and Classifieds
The IAB Europe AdEx Benchmark study splits the online ad market into 3 broad segments: Display, Search and Classifieds and Directories. Growth in these online advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed other categories with a growth rate of 15.2% and the pace of Display growth further accelerated versus 2013. In 2014, the total value of the Display ad market was €10.9bn.
Search showed growth of 10.8% - and a market value of €14.7 billion. It continues to be the largest online advertising format in terms of revenue, but has recorded a deceleration in its growth rate in the last three years.
The 2014 Classifieds and Directories market grew 5.8% to €4.9bn showing growth of 5.8%. Classifieds & Directories benefitted from the improvement in the economy, but is increasingly challenged by Paid-for-search and Data-driven Display to compete for advertising budgets.
Mobile and video are driving growth 
Mobile now accounts for 17.7% of the display market, with a growth rate of 72.5% compared with 2013.
Online video advertising also showed strong growth, now representing 15.1% of the display market.
Eleni Marouli, a Senior Analyst at IHS and author of the report, “The sustained double-digit growth in online advertising in the last five years demonstrates the continual evolution of the online advertising market. The two formats driving this growth in 2014 were mobile and video. The rise of mobile and video is a reflection of the investment and innovation of the online advertising industry to meet advertiser needs, not just a reaction to shifts in consumption trends”
Regional and national pictures
Daniel Knapp, Director of Advertising Research at IHS Technology and author of the research, said, "Our study shows that even the most mature online advertising markets in Europe sustain double digit growth, clearly indicating the economic vibrancy of the sector. This growth is primarily enabled by the proliferation of intelligent data infrastructures. Data is the growth engine behind advertising that serves as a connective tissue between consumers, media and brands.”
The CEE region grew strongly as online advertising is still benefitting from the improvements in broadband infrastructure and the increase in broadband penetration in these markets, which brings more addressable audiences online. However, growth in European online advertising continues to be driven by the most mature online advertising markets in Europe. This is a direct result of investment in formats and targeting capabilities and developing data strategies in a cross-device environment.
As Europe exits the double-dip recession, advertising markets will benefit from increased optimism from brands. Provided that publishers continue to improve their offerings, online advertising spend is well-placed to be the main beneficiary of the larger advertising budgets. Mobile and video will be the primary areas of interest for these brands.
Top 3 Individual growth markets were:
Slovenia 43.1% growth
Ireland 33.3%.growth
Belarus 32.8%growth
Top 10 Rankings
UK - €8.9bn
Germany – €5.4bn
France - €3.7bn
Italy – €1.9bn
Russia- €1.8bn
Netherlands - €1.5bn
Sweden - €1.0bn
Spain – €0.9bn
Denmark - €0.7bn
Norway - €0.7bn"
Full presentation here

90% of new visits to Guardian content in 2014 were from mobile

"Lee Fels [The Guardian] then told delegates that the Guardian saw 500m new visits to its digital content during 2014, 90 per cent of which were from mobile.
“The gap in visits from mob to desktop is widening,” said Felds. “It’s not reversible, it’s going to be exacerbated and we all need to gear up for it…We are following where the user is.”
Earlier today at the event, the IAB’s resident psychologist, Dr. Simon Hampton, offered a cautionary note around the Internet of Things, telling delegates that if connected household appliances started collecting data on every aspect of people’s lives and feeding it back to them, people would start tuning out if the data told them things they don’t want to hear."

Data Volumes vs SMS Volumes in various countries

Source:  Tweet from Benedict Evans, 21st May 2015

Monday, 18 May 2015

Google & Facebook account for 49'% of US digital ad spend & 52% of mobile ad spend

"In the battle for digital ad dollars, it's Google, Facebook and then who?
That's the question marketers are asking as they try to spend effectively on the Web, and even more so on mobile, where traffic is shifting.
Heading into quarterly earnings reports next week, Google and Facebook utterly dominate digital advertising, according to eMarketer.
The two alone control 49 percent of the U.S. digital advertising market and 52 percent of mobile ads.  Way below them, the No. 3, 4 and 6 players—Microsoft, Yahoo and AOL—are losing market share, and nobody below them claims even 2 percent. Twitter ranks fifth at 2.3 percent."

WeChat has 549m monthly active users

Source:  Tech in Asia, 12th May 2015

More American households have a smartphone than a desktop computer

"More U.S. households now own a smartphone than a desktop, according to new research that Parks Associates will discuss at the 19th-annual CONNECTIONS™: The Premier Connected Home Conference, May 19-21, in San Francisco. In the last five years, desktop adoption declined from 90% to 69% among U.S. broadband households, while smartphone adoption increased from 36% to 78%. Tablet adoption increased from 7% to 63%.
“The U.S population has made a dramatic shift to mobile devices and services, which they are using to access content in the cloud and check the smart devices in their connected home,” said Stuart Sikes, President, Parks Associates. “At CONNECTIONS™, we will analyze the implications of this new post-desktop world.”"

A quarter of app users discover apps through search

"A Google study has found that mobile search is a growing method for app discovery, suggesting app downloads will increase as mobile search surges.
Google’s finding that one in four app users discovers an app through search comes after the search giant announced a revamping of its AdWords online advertising service with a focus on interactive mobile ads. The developments highlight Google’s recent initiatives aimed at keeping the company relevant as mobile becomes the dominant search medium.
"Discovery has always been a critical element of app usage and it remains so today,” said Jeff Hasen, founder/CEO of Gotta Mobilize, a Seattle-based marketing consulting firm. “One can spend weeks looking at all the millions of apps available, but, of course, no one has the interest or time to do so."

20% of sales on Red Dress Boutique are processed by Amazon

"Amazon, which is usually opaque on numbers, did not disclose how many merchants actually use the service in some form, although the four-year-old online clothing site Red Dress Boutique, for example, reports that 20% of all sales — at least $2.8 million based on back-of-the-envelope math — are now processed via Amazon."

There are 14,000 Uber drivers in London

"[Boris] Johnson’s move follows a sharp rise in the number of minicabs looking for customers in the capital: numbers have increased by nearly a fifth in the past year to more than 78,000.
The rise has heaped pressure on Transport for London — which is currently undertaking a review of the London taxi market — to take action.
London’s long-established black cab drivers have complained that a lack of regulation was skewing the market in Uber’s favour.
Alarmed at Uber’s burgeoning popularity, black cab drivers have tried to stall Uber’s ascent with a legal challenge. The London Taxi Drivers Association took Uber to court alleging that the use of a smartphone to log journeys flouted regulations.
Uber said it now has about 14,000 drivers in London, making it the largest provider of private hire services in the city."

Thursday, 14 May 2015

90% of Twitter video views happen on a mobile device

"The majority of Twitter users (82%) watch video content on Twitter and most watch on a hand-held screen. A staggering 90% of Twitter video views happen on a mobile device, according to our own internal data. But Twitter users don’t just lean back and watch video; they also lean in to create it. Twitter users are 1.9x more likely to have uploaded a video online (anywhere) than the average U.S. internet user.
What types of video do users want more of on Twitter? Among users that have seen the following types of video content, many would like to see more of the same on Twitter, including breaking news (64%), clips from live sports shows (54%) and clips from TV shows (50%). And Twitter users say they want to see more videos from three top sources: celebrities (45%), other users (40%) and brands (37%)."

Mobile-only & desktop-only access of top UK websites

Source:  comScore, 30th April 2015

Facebook has 40m active small business pages

"Facebook is announcing some new programs today for small businesses, particularly ones that advertise. At the same time, the company’s also arguing that plenty of businesses find out value on the social network without buying ads.
Specifically, Facebook says the number of active small business Pages keeps growing — it’s up to 40 million, compared to 30 million last June. And only 2 million of them are active advertisers."
Source:  TechCrunch, 29th April 2015