Online Advertising - Global Market 2009-2012

Published by: IDATE

Published: Jun. 1, 2009 - 130 Pages

Table of Contents

1. Executive Summary

1.1. The rise of an effective above-the-line and below-the-line marketing medium

1.2. Overall, the economic crisis will be good for the Web

1.3. Online advertising: a global market worth 59 billion EUR net in 2012

2. Methodology

3. Market Structure & Key Factors

3.1. Market overview

3.1.1. Definition

Above-the-line and below-the-line advertising

Internet: a mass medium serving non-media advertising

Pricing models

A huge structural difference between gross and net

3.1.2. Market segmentation

Goals of advertising campaigns

One format per buying cycle

Display and sponsorship

Search engine marketing (SEM)

Classified ads

Online directories

3.2. Market estimates 2005-2008

3.2.1. Market by advertising format

3.2.2. Market by geographic region

China

Europe

Japan

South Korea

United States

3.3. Key factors

3.3.1. Key technologies

Online advertising needs to improve relevance…

…by focusing on targeting and contextualization

Behavioral tracking and targeting

Right to privacy and regulatory limitations

The rise of video advertising

Audience measurement

Effectiveness and relevance of the advertising-content mix

3.3.2. Consumption patterns driving the growth of online advertising

The Internet: a mass medium that is still expanding

Search: an important Internet service

The Internet: highly competitive compared to traditional media

Video consumption is taking off

Social networks

E-commerce: reaching the majority of Web users worldwide

3.3.3. Trends in products and services

Advertising innovations

Video and new ad formats

Marketing 2.0

Display: new generation banners

Developments in audience measurement

4. Industry Structure & Strategy

4.1. Industry structure

4.1.1. Value chain

The SEM value chain

The display value chain

4.1.2. Competition structure

A large number of advertisers

Online ad networks: a splintered market

Google: the market leader in ad serving

The online advertising end market: an oligopoly

Antitrust measures: the collapse of the Google-Yahoo! partnership

4.1.3. Business models

Widely varying ad creation costs

Revenue and expenses of a typical online company

Sharing ad revenue

E-marketing and e-commerce

4.2. Player profiles

4.2.1. Summary table

Display sites

Online ad networks

Agencies

Affiliation platforms

4.2.2. Player overviews

24/7 Real Media

Google

Havas Digital

Microsoft

Platform-A

TradeDoubler

ValueClick Networks

Yahoo!

4.3. Strategic analysis

4.3.1. Change in the main formats of online advertising

The end of the golden age for SEM?

The rise of a two-tier display market?

4.3.2. Local advertising: a boon for online marketing

Marketing primarily based on below-the-line (BTL) techniques

The Web: an effective medium for local advertising

Local advertising media and formats

Offline local advertising moves online

An emerging market expected to grow rapidly in coming years

4.3.3. Ad creation: moving beyond the Flash vs. indexing dilemma

Flash: an obstacle to indexing

Flash and indexing are not mutually incompatible

4.3.4. The Web is making the best of the economic crisis

Contracted advertising market overall

Online advertising market continues to grow

5. Markets & Forecasts

5.1. Growth factors

5.1.1. Analysis of growth and disruptive factors

5.1.2. Market forecasts

5.2. Market forecasts

5.2.1. Forecasts 2009-2012

5.2.2. Forecasts by ad format

5.2.3. Forecasts by geographic region

China

Europe

Japan

South Korea

United States

Tables

Table 1: The AIDA model applied to online advertising

Table 2: Revenue per user, December 2008

Table 3: Main features of online ATL and BTL advertising

Table 4: Forms of online advertising

Table 5: The AIDA model applied to online advertising

Table 6: Global online advertising market, 2005-2008

Table 7: Breakdown of the global online advertising market by format, 2005-2008

Table 8: Online advertising market in China, 2005-2008

Table 9: Breakdown of the online advertising market in China by format, 2005-2008

Table 10: EU-27 online advertising market, 2005-2008

Table 11: Breakdown of the EU-27 online advertising market by format, 2005-2008

Table 12: Online advertising market of the five largest EU countries, 2005-2008

Table 13: Breakdown of the online advertising market in the five largest EU countries by format, 2005-2008 . 29

Table 14: Online advertising market in France, 2005-2008

Table 15: Breakdown of the online advertising market in France by format, 2005-2008

Table 16: Online advertising market in Germany, 2005-2008

Table 17: Breakdown of the online advertising market in Germany by format, 2005-2008

Table 18: Online advertising market in Italy, 2005-2008

Table 19: Breakdown of the online advertising market in Italy by format, 2005-2008

Table 20: Online advertising market in Spain, 2005-2008

Table 21: Breakdown of the online advertising market in Spain by format, 2005-2008

Table 22: Online advertising market in the UK, 2005-2008

Table 23: Breakdown of the online advertising market in the UK by format, 2005-2008

Table 24: Online advertising market in Japan, 2005-2008

Table 25: Breakdown of the online advertising market in Japan by format, 2005-2008

Table 26: Online advertising market in South Korea, 2005-2008

Table 27: Breakdown of the online advertising market in South Korea by format, 2005-2008

Table 28: Online advertising market in the United States, 2005-2008

Table 29: Breakdown of the online advertising market in the United States by format, 2005-2008

Table 30: Change in time spent online per week in Europe, 2006-2008

Table 31: Change in online video content consumption in France, Germany and the UK, April 2007-May 200850

Table 32: Online ad market share controlled by Google, Yahoo! and Microsoft, 2006-2007

Table 33: Major steps in the failed Google-Yahoo! deal

Table 34: Revenue per user, December 2008

Table 35: Growth of the global online ad market, 2009-2012

Table 36: Change in the breakdown of the global online ad market by format, 2009-2012

Table 37: Growth of the global online ad market in China, 2009-2012

Table 38: Change in the breakdown of the global online ad market by format in China, 2009-2012

Table 39: Growth of the global online ad market in the European Union (27 countries), 2009-2012

Table 40: Change in the breakdown of the global online ad market by format in the European Union (27

countries), 2009-2012

Table 41: Growth of the global online ad market in the five major European countries, 2009-2012

Table 42: Change in the breakdown of the global online ad market by format in the five major European

countries, 2009-2012

Table 43: Growth of the global online ad market in the UK, 2009-2012

Table 44: Change in the breakdown of the global online ad market by format in the UK, 2009-2012

Table 45: Growth of the global online ad market in Germany, 2009-2012

Table 46: Change in the breakdown of the global online ad market by format in Germany, 2009-2012

Online Advertising

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Table 47: Growth of the global online ad market in France, 2009-2012

Table 48: Change in the breakdown of the global online ad market by format in France, 2009-2012

Table 49: Growth of the global online ad market in Spain, 2009-2012

Table 50: Change in the breakdown of the global online ad market by format in France, 2009-2012

Table 51: Growth of the global online ad market in Italy, 2009-2012

Table 52: Change in the breakdown of the global online ad market by format in Italy, 2009-2012

Table 53: Growth of the global online ad market in Japan, 2009-2012

Table 54: Change in the breakdown of the global online ad market by format in Japan, 2009-2012

Table 55: Growth of the global online ad market in South Korea, 2009-2012

Table 56: Change in the breakdown of the global online ad market by format in South Korea, 2009-2012

Table 57: Growth of the global online ad market in the US, 2009-2012

Table 58: Change in the breakdown of the global online ad market by format in the US, 2009-2012

Figures

Figure 1: Online advertising market: worldwide, in Europe and in the United States, 2005-2012

Figure 2: Breakdown of the global online advertising market in 2007

Figure 3: Breakdown of advertisers and ad spending for the first half of 2008

Figure 4: 24/7 Real Media’s Open AdStream platform

Figure 5: Increase in Internet users worldwide, 2007-2008

Figure 6: Most popular online activities in Europe, 2007-2008

Figure 7: Change in the number of online searches performed monthly by users around the world, August

2007-July 2008

Figure 8: Change in the breakdown of European users’ weekly media consumption time, 2006-2008

Figure 9: Share of European users’ weekly media consumption time spent on the Internet in 2008

Figure 10: Change in average advertiser spend in France, by medium, 2006-2008

Figure 11: Number of videos watched online in the United States, 2007-2008

Figure 12: Number of unique visitors to video sites in the United States, 2007-2008

Figure 13: Percentage of US Internet users who have watched a video online, 2007-2008

Figure 14: Average time spent watching videos online, per viewer in the United States, 2007-2008

Figure 15: Growth in the number of social networking site users around the world, September 2007-

September 2008

Figure 16: Increase in the number of unique monthly visitors on the main social networking sites around the world, 2006-2008

Figure 17: Percentage of Internet users who have bought at least one item online, end of 2007

Figure 18: Overlay in online video and sponsorship

Figure 19: YouTube InVideo Ads

Figure 20: Product placement in an online video

Figure 21: blinkx Un-roll

Figure 22: Logic of contextual advertising in online video

Figure 23: Internet users’ reactions to in-video ads, end of 2007

Figure 24: Sample communities: Nike, EasyJet and H&M on MySpace

Figure 25: Verizon’s Business Page on Facebook

Figure 26: Pizza Hut application on Facebook

Figure 27: Engagement Ads on Facebook

Figure 28: Growth of annual advertising spend on social networking sites worldwide, 2007-2013

Figure 29: Breakdown of advertising spend on social networking sites in the US, 2007-2009

Figure 30: Buying a DVD via a banner ad, developed by Tailgate

Figure 31: The SEM value chain

Figure 32: The display value chain

Figure 33: Advertising industry structure

Figure 34: Increase in the number of Google advertisers, 2003-2008

Figure 35: Breakdown of media spend for advertisers in the food and health/beauty sector by advertising medium in France, in 2007

Figure 36: Top five ad networks in terms of penetration rate in the US, December 2008

Figure 37: Breakdown of the ad server market, December 2008

Figure 38: Market share of the top five search engines in the US, November 2008

Figure 39: Market share of the top five search engines in the US, November 2007

Figure 40: Most popular search sites in Europe, March 2008

Figure 41: Breakdown of China’s SEM market, Q3 2008

Figure 42: Breakdown of visits to e-commerce sites in France brought by sponsored links, February 2008

Figure 43: Main display sites in the US, June 2008

Figure 44: Ad revenue’s contribution to Google, Yahoo! and auFeminin.com’s income in 2008

Figure 45: Breakdown of Google’s annual revenue, 2006-2008

Figure 46: Breakdown of operating costs for Google and Yahoo! in 2008, by cost item

Figure 47: Change in the annual growth rate of Google’s SEM business and revenue in the US, 2001-2008

Figure 48: Online yellow pages revenue in the US, 2002-2008

Figure 49: Breakdown of business directory segment revenue in France, 2004-2008

Figure 50: Forecast annual spend on local digital advertising* in the US, 2008-2013

Figure 51: Digital media’s share of local ad spend in the US, 2008-2013

Figure 52: Worldwide ad spend growth forecasts for 2009 and 2010, according to Carat

Figure 53: Media channels likely to benefit from budget shifts away from other media in 2009

Figure 54: Media channels likely to suffer from budget shifts toward other media in 2009

Figure 55: Changes in online ad spending between 2008 and 2009

Figure 56: Primary reasons cited by advertisers who expect to increase their Web budgets at the expense of other media

Figure 57: Change in the breakdown of online ad revenue in the US by pricing model, 2004-2008

Figure 58: Change in average net CPM for display ads (not including ad network commission) for all site sizes,2007-2008

Figure 59: Change in average net CPM for display ads (not including ad network commission) by site size,2007-2008

Figure 60: Change in CPC earnings for the top search engines in the US, end 2007-end 2008

Figure 61: Google’s quarterly income in 2008

Figure 62: Google’s quarterly net income in 2008

Figure 63: Change in Google’s annual income, 2004-2008

Figure 64: Change in Google’s annual net income, 2004-2008

Abstract

• What is the size of the online advertising market, worldwide and
nationally?
• At what rate will the market progress between 2009 and 2012 at
a time of global crisis in the advertising sector?
• What weight does search marketing really have?
• What market share will display ads have as rich media and
video advertising develop?
• What are the most widely anticipated technologies and
developments: behavioural targeting, video advertising, audience measurement?
• How is the sector’s new value chain being organised between
advertisers, agencies, online ad services, keyword sales and Websites?

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