danny meadowsklue introducing iab europe 4.1

Online: The interactive ingredient Introducing IAB Europe The world’s interactive advertising trade association www.IABeurope.ws March 2007 Danny Meadows-Klue Co-founder & Chief Executive The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Online: The interactive ingredient The world’s interactive advertising trade association 1996-2007 The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Online: The interactive ingredient Helping your industry grow; helping advertisers get more The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Today’s talk • Vision from industry leaders • About the IAB global network • Introducing IAB Europe • Online audiences across Europe • Online advertising spend • The UK: Europe’s largest market The world’s interactive advertising association Vision The world of marketing is changing The world’s interactive advertising association Online: The interactive ingredient The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Online: The interactive ingredient Bill Gates “The future of advertising is the internet” Bill Gates sees the debate between online and offline advertising as obsolete, because soon all media channels will be powered by the internet The boundaries blur between the virtual and physical worlds IAB UK conference The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Online: The interactive ingredient The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 Online: The interactive ingredient Sir Martin Sorrell Chief Executive, WPP Traditional media owners can no longer afford to hold off going digital because the shift from old to new media is not going to happen in the next generation: “It is happening now and is strong, rapid and large” Sorrell sees a “tremendous violence in traditional media as it continues to get displaced by digital.” The media industry is in a state of flux and traditional media owners are all worried about change in the balance between new and old media IAB conference The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004 The IAB Network 25 countries Five programmes of activities The world’s interactive advertising association Online ad activity grows… European Online Advertising Activity (Dec 06) + Growth on Dec 05 +20% +9% 126,955 +8% 21,660 Advertisers 45,438 Cam paigns Source: Nielsen//NetRatings AdRelevance, all categories excluding house ads, December 2006 The world’s interactive advertising association Banners Key European trends The world’s interactive advertising association Key trends • Time online: >20% of the time we all spend with media is spent online • ‘Web 2.0’: social networks and user- generated content enjoy rapid growth • Retail: the web becomes the primary research channel for large purchases • Broadband: watching TV online The world’s interactive advertising association Web 2.0 Communication and Web 2.0 activities regularly carried out by European Internet Users Source: NetObserver Europe, December 2006 The world’s interactive advertising association Online shopping trends • Use of online media is increasing (people view 27% more Internet pages than a year ago) • Over two-thirds of online Europeans visit eCommerce sites • More companies are advertising online; it’s a key media channel • Advertisers should be online – its where shoppers spend their time researching and buying and it accounts for more of spend • People shop online mostly because its convenient but factors differ in importance between different groups • General surfing dictates which sites are chosen but personal recommendations and online ads are growing in importance – search is no longer the dominant trigger The world’s interactive advertising association The UK Europe’s biggest market The world’s interactive advertising association Advertisers switch to online ‘02 £ millions ‘01 Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC The world’s interactive advertising association ‘03 ‘04 ‘05 ‘06 Advertisers switch to online Year on year growth for the first half 2006 Total advertising market growth = 1.4% Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC The world’s interactive advertising association Internet: overtaking national press £m Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau The world’s interactive advertising association Search: 58% of online spend % share of revenues for January to June 2006 Half year total £917.2m IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC Data excludes unclassified figures Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC The world’s interactive advertising association Search: Europe most popular online activity… Top Sectors Rank Unique Audience (millions) Active Reach Search 96.2 81% General Interest Portals & Communities 91.3 77% Software Manufacturers 85.9 72% Internet Tools/Web Services 73.5 62% E-mail 69.7 59% Member Communities 61.7 52% Mass Merchandiser 58.4 49% Instant Messaging 54.6 46% Multi-category Telecom/Internet Services 52.2 44% 10 Classifieds/Auctions 51.9 44% Source: Nielsen//NetRatings NetView home and work data Europe March 2006 The world’s interactive advertising association UK: Key trends • Search: advertisers discover how search is the new tool to get customers • Creativity: explosive growth in video and rich media advertising formats • Marketing culture: the web accepted as a core element of the marketing mix demanded on every campaign brief The world’s interactive advertising association Summary The world’s interactive advertising association The world’s interactive advertising association Today’s talk • Vision from industry leaders • About the IAB global network • Introducing IAB Europe • Online audiences across Europe • Online advertising spend • The UK: Europe’s largest market The world’s interactive advertising association Online: The interactive ingredient Introducing IAB Europe The world’s interactive advertising trade association www.IABeurope.ws March 2007 Danny Meadows-Klue Co-founder & Chief Executive The world’s interactive advertising association Online ‘just got started’ Danny Meadows-KlueMay 2004