Advertising generates €7 for the economy for every €1 spent

But the industry still needs to do a better job of communicating its economic benefits across Europe as policy makers look to limit online advertising.

Source: Advertising generates €7 for the economy for every €1 spent

Advertising economy EU

Every euro spent on advertising boosts EU GDP by €7, contributing €643bn to the 28 countries in the bloc and creating millions of jobs, promoting competition and boosting innovation.

That is the conclusion of a new report by the World Federation of Advertisers (WFA), which is using the findings as a stepping stone to promote the positive impact advertising has on economies.

The study, conducted by Deloitte using econometric modelling, found advertising contributes 4.6% to EU GDP and accounts for 6 million jobs. That includes people directly involved in producing advertising, as well as businesses such as publishers reliant on advertising for their revenues and people employed across the wider economy due to the consequences of ad activity such as sales people and those in hospitality.

The report follows a previous study by the Advertising Association (AA) in the UK in 2013, which used the same methodology to conclude that for every £1 spent on advertising there is a £6 boost to the economy. According to the AA, the ‘Advertising Pays’ drive in the UK helped change policy makers minds about the role of advertising and the WFA is hoping for a similar impact across Europe.

READ MORE: Advertising generates £100bn for UK economy

“[This research] enables us to argue more forcefully and convincingly about the positives of advertising,” WFA CEO Stephan Loerke tells Marketing Week.

“There are a lot of headlines about advertising but they usually put the industry on the defensive. They are usually in the context of trying to address perceived challenges such as obesity among children or data privacy. But advertising actually plays an important role for the economy and society and this is totally left aside.

“This is all the more contradictory as most EU governments have a clear focus on generating growth through innovation. We need a positive proactive public agenda that explains why advertising is a good thing. It needs to be much more proactively promoted and championed.”

We need a positive public agenda that explains why advertising is a good thing. It needs to be much more proactively promoted and championed.

Stephan Loerke, WFA

While the WFA report focuses on the EU number, advertising’s contribution to the economy has been calculated across a number of different countries including Japan and Australia. And this found that advertising has a similar contribution across countries, tending to vary between €6 and €8.

Those variations tend to come down to a number of things. While the metholodology cannot be definitive, countries with lower ad spend per capita tend to contribute more to GDP, as do countries with a higher proportion of their economy given over to services.

But the major difference appears to be in the size of the online ad market. The research suggests that ad markets with a proportionally bigger share in digital are likely to be more effective at creating GDP.

That is why the WFA is particularly worried about proposed EU legislation that would limit digital advertising. Announced this week, the ePrivacy directive has the aim of boosting users’ privacy online but to do this it recommends giving internet browsers the choice of whether they opt-in to third-party cookies that can track people across the web when they install the browser, rather than on individual websites.

Yet at the same time the proposals will allow publishers to track if people are using ad blockers and ask them to turn them off if they want to see ad-supported content.

“It looks like a significant percentage of people would reject cookies but could then be constantly bothered by websites requesting them to accept cookies,” explains Loerke.

He then cites separate research that suggests 89% of internet users would reject tracking cookies as a reason for his concern that the new rules will have “major implications” for the digital industry.

“We are concerned that what has been put forward will have unintended consequences and impact the digital ecosystem as we know it,” he says. “The EU has a growth agenda focused on digital… but to put forward a regulation like the one we see would, we think, very significantly hurt those ambitions. This is yet another case where we feel there is not enough understanding by policy makers of the benefits of advertising.”

European publishers see ad-blocking rates stabilizing

Ad blocking rates are stagnating in many European markets.

Source: European publishers see ad-blocking rates stabilizing

Ad blocking emerged over a year ago as a major threat to digital publishing, most acutely in Europe, which has long boasted the highest ad-blocking rates in the world. But now, European publishers are seeing ad blocking rates stabilize and even drop.

It’s too soon for publishers to declare victory in the war on ad blocking. Publishers at the Digiday Publishing Summit Europe in Nice, France, said there’s still much work to be done, with one estimate in France stating publishers are losing up to one-fifth of their desktop ad revenue to the problem. But several publishing executive said that ad blocking rates are no longer growing, helped by the shift to mobile, where ad blocking is far less prevalent. There’s also signs that more muscular and comprehensive approaches by publishers to both clean up their ad experience and crack down on users of ad blockers is paying dividends.

The IAB Europe is gathering information from various markets on the issue, but Townsend Freehan, CEO of IAB Europe, said early indications are ad blocking has stabilized.

“There seems to be this phenomenon of stagnation and small drops in different markets,” she said. “But I wouldn’t presume to know the reasons for that or be complacent.”

Likewise, Le Figaro has seen ad blocking stagnate at between 20 and 22 percent of visitors. Overall, French publishers, who have joined forces to fight back against ad blocking, see about 30 percent of users with ad blockers. For now, it seems like the problem is not growing, said Bertrand Gie, head of new media, Le Figaro.

“It’s not rising as quickly,” Gie said. “The big question is ad blocking on mobile. If [ad blocking] stays on the desktop, it will be fine for us. If it moves to the mobile it will be a very big problem.”

French publishers banded together in a coordinated effort to cajole and pressure ad-block users to deactivate their blockers. The good news: 18 percent deactivated. The not-so-good news: 54 percent subsequently turned their blockers back on.

“The problem of ad blocking is still there,” Gie said. “But it’s gone from an over-dramatized problem to a professional problem.”

In Germany, a similar story is playing out, with ad blocking rates stuck at about 30 percent, according to Oliver Von Wersch, managing director, growth projects and strategic partnerships, Gruner+ Jahr Digital. He dismissed the idea of “black sheep” German company Eyeo, maker of Adblock Plus software, playing a role in the solution: “It has to be solved professionally and not be gangsters,” he said.

“Mobile is the big wild card,” he said. “There is no real problem yet.”

In Sweden, all publishers gathered in 2015 and decided on a coherent approach to fighting ad blocking. The percentage of ad blocking had risen by 50 percent over theprevious year to reach 30 percent of desktop users. The top 25 publishers signed upfor the initiative, which involved cleaning up the ad experience, stepped-up messages to users with ad blockers and, ultimately, requiring ad-blocking users to whitelist sites this past August.

“It’s not growing anymore,” said Daniel Weilar, CEO of Nyheter24-Gruppen. However, he also noted that much of this is due to more traffic coming from mobile.

“Mobile is close to zero, but watch out,” he added. “We really don’t know what’s going to happen to the ad-block equation in mobile yet. It’s too early to say.”

Confidence increases in native, but creative still a problem | The Drum

Confidence increases in native, but creative still a problem | The Drum.

Firm direction from the IAB means almost two-thirds (63 per cent) of media planners are now confident that native ad formats are a safe media channel to invest in, but contrasts in the business models of creative and media agencies make execution difficult, according to a report.

The findings were revealed today (15 July) in the second annual report from FaR Partners, commissioned by Adyoulike, which revealed the vast majority of “agencies are now confident that the native market is well regulated”, compared to just 33 per cent 12 months ago.

Controversies such as the ASA forcing Mondelez’s Oreo to remove several YouTube videos from its channel on the video sharing site for failing to adequately label the content as marketing communications, and other areas of uncertainty had apparently left media planners wary of including native ads on their media plans.

Guidelines offer assurances

However, since then the trade body has issued explicit guidelines on how to denote paid-for native ad units – which are purposely designed to replicate the look and feel of a media owner’s editorial content – from non-sponsored media for the first time.

For instance, marketers deploying native advertising must ensure that they provide “visual cues” that make it immediately clear the ads are paid-for content, plus such units must also be labelled using wording that “demonstrates a commercial arrangement is in place” according to the news rules, such as ‘brought to you by’.

As a result, media planners are now a lot more assured about using native advertising units to help raise awareness of their client’s brands among consumers, with respondents reporting that native ads will account for an average of 18 per cent of their total digital display spend this year.

Native creative poses problems

Elsewhere, the study also revealed that 65 per cent of respondents agree that native addresses the creativity challenge in the digital ad market, but media agency respondents also reported that clients’ sign-off processes were an issue when it comes to campaign execution.

In addition, media agency respondents also observed that creative agencies are still challenged when it comes to executing on the native opportunity. Some noted that creative agencies are often challenged by the remuneration model (which means they have less time and resource to deliver strong native executions).

 

Other observations recorded in the study were that creatives shops struggle with the collaborative element required for native executions, and that they also struggle with the contextual/environmental restrictions of native ad placement.

Francis Turner, managing director of Adyoulike UK, added: “A lot of the challenges that existed around native advertising last year, such as regulation and budget, have become less of an issue as brands and agencies fully grasp everything native can do for them.”

He went on to say: “There are still challenges around native ads, mainly in bringing the creative opportunities that everyone can see to actual fruition. However, what’s very clear is that it’s an incredibly exciting time for the market, with programmatic trading and mobile at the forefront, and things are only going to accelerate over the coming months.”

Turner further noted that native ad formats were seen as a potential to “creativity gap” on mobile devices, where traditional display ads simply ‘don’t work’, with 24 per cent of native ad spend predicted to be on mobile by the end of the year, according to the figures.

A further statistic unearthed by the study, which quizzed over 500 agency staff, was that 16 per cent of native advertising spend now comes from a dedicated budget, this is compared to 6 per cent last year.

ATDs eye programmatic native

The study also highlighted the prospects that exist for programmatic native, with Turner additionally identifying the recent publication of the OpenRTB 2.3 standard – which instructs advertisers on how to label their media assets when bidding on native ad units via an ad exchange – as buoying this confidence.

The survey found that 100 per cent of holding group entities such as WPP’s Xaxis and Publicis Groupe’s Vivaki (which are commonly referred to as agency trading desks, or ATDs) see programmatic native as a strong market opportunity. Although currently only an average of eight per cent of their budget goes on it (if they exclude social media spend).

The two key benefits of trading native ads programmatically were seen as reducing costs and scalability, though the main challenge highlighted by ATDs was the difficulty in making native content contextually relevant.

Turner added: “Programmatic native is a massive opportunity right now, thanks largely to the OpenRTB 2.3 standard that enables native ads to be delivered at scale. Once agencies are convinced that campaigns can offer both creativity and relevance, which they most certainly can, I’ve no doubt that programmatic trading budgets will skyrocket.”

Online Vidéo (2015) – Belgique: hausse de 17% vs moyenne européenne de 36% – source: IAB

Le mobile contribue à 50% de la croissance du display en Europe – JDN.

Les annonceurs les plus matures se mettent en ligne avec le basculement des usages depuis le Web fixe vers le mobile, selon l’IAB Europe.

 Le marché de la publicité online a pesé près de 30,7 milliards d’euros en 2014, selon l’Adex Benchmark de l’IAB Europe. Une croissance de 11,6% donc, dans la lignée des deux exercices précédents (11,5% en 2012 et 11,9% en 2013), qui montre que le marché arrive à maturité. Preuve en est : le montant des dépenses publicitaires online par tête en Europe de l’Ouest est supérieur à celui des autres médias, TV et papier compris. Trois pays : le Royaume-Uni, l’Allemagne et la France représentent d’ailleurs à eux seuls 58,8% du marché.

Le mobile contribue à 50% de la croissance du display en Europe - JDN

Parmi les principaux leviers de croissance, la vidéo et le mobile, qui permettent audisplay de grignoter peu à peu des parts de marché au search. Ce dernier pèse certes encore 48,1% des investissements en 2015, mais le display dépasse la barre des 35% pour la première fois depuis 2008, grâce à une croissance de 15,2% au cours de l’année écoulée. Pour qui en doutait encore, les chiffres de l’IAB Europe permettent de se rendre compte de l’influence des investissements en vidéo online dans la croissance du display. Le pays avec la croissance la plus faible sur ce format, la Belgique, connait une hausse de 17% alors que la moyenne européenne se situe autour des 36%.

iab europe vidã©o
Croissance des investissements en vidéo online en Europe.  © IAB Europe

Avec une croissance estimée de 28,8% la France se situe donc en dessous de la moyenne. Le pourcentage est peut-être toutefois minoré. L’observatoire de l’ePub estimait plutôt la croissance des investissements display vidéo à 65% en 2014. L’IAB Europe estime à 15,1% la part des investissements display captés par la vidéo en Europe. La marge de manoeuvre est donc encore importante mais la lame de fond réelle. Et il ne fait aucun doute qu’à terme, les équipes TV et vidéo online des agences médias ne feront plus qu’un…

Autre tendance inéluctable : la démocratisation des investissements en publicité mobile. Au Royaume-Uni, ce dernier représente désormais 33,8% des investissements display contre à peine plus de 10%, deux ans plus tôt. Les annonceurs les plus matures se mettent donc en ligne avec le basculement des usages depuis le Web fixe vers ce device. Et tout laisse à penser que le reste de l’Europe suivra l’exemple du grand-frère anglais. La France est, par exemple, passée d’un peu plus de 5% à quasiment 15% dans le même laps de temps. Portée par le tropisme anglais, la moyenne européenne se situe déjà à 17,7%

mobile iab
Part du mobile dans la croissance du display. © IAB Europe

 

Dernier chiffre éloquent, le mobile a pesé pour près de 50% de la croissance du display. Si on retire en effet ce device, la croissance du display en Europe passe de 15,2 à 7,9%. L’Irlande, le Royaume-Uni, la Norvège, la France et les Pays-Bas sont les pays les plus concernés.

Consumer is exposed to Digital Out of Home Media for 14 minutes per week – investments in the space are expected to grow 14% year-over-year till 2017 – IABlog

Top 5 Trends in Digital Out of Home – IABlog.

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We tend to spend a lot of time outside and on-the-go, getting from one place to the next. It’s no surprise, then, that the average global consumer is exposed to various Digital Out of Home Media for 14 minutes per week, and investments in the space are expected to grow 14.2% year-over-year between 2011 – 2017. New York City’s Fulton Center in Lower Manhattan has recently reopened, accommodating up to 300,000 daily riders and boasting more than 50 digital screens available for marketers. The largest and most expensive digital billboard debuted in Times Square this past November, with just as many pedestrians expected to pass though the area daily. The overlapping powers of digital, mobile, outdoor, and Out of Home content seem to be stepping up.
Digital Out of Home (or “DOOH” as the channel is commonly referred) encompasses a variety of screen shapes, sizes, and levels of interactivity. From digital billboards and signs on taxis, to digital signage at airport gates and gyms and waiting rooms, these varieties underline a necessary bridge between context and location in relevance and favorable recall – vital components of any media campaign. The IAB sees norms and expectations from the online advertising world informing and expediting the growth of DOOH, and the IAB’s Digital Out of Home Taskforce launched this past fall with aims to define the DOOH channel while positioning its place within the larger interactive advertising industry.
As we collectively say “hello” to 2015, the Taskforce shares its thoughts on the Top 5 Trends in DOOH.
DOOH_4.jpg
photo courtesy of Luke Luckett, IAB Consultant
“Top 5 Trends in Digital Out of Home”
1. Cross-platform targeting opportunities are on the rise. As mobile devices become more advanced and ubiquitous, the proliferation of captive digital screens in home and out of home has been growing. Interactions with consumers have become more prominent via new mobile technologies like NFC, beacons and more accurate geofencing capabilities. Such technologies may allow a marketer to personalize the consumer’s experience and even allow for immediate interaction.
 
2. DOOH will provide increasingly relevant messages in locations that matter. The amount of time spent outside and in transit is increasing in many regions.  New forms of targeting and subsets have made the art of reaching specific audience segments in ideal locations easier – and in our highly distracted modern experience, a consumer’s receptivity to new concepts outside the home can be highly impactful. In fact, a recent study by YuMe and IPG Media Lab found that consumers are 41% more receptive to advertising in public places than at home, and 16% more receptive at school/work than at home. As a consumer, the device you carry with you creates a natural tie-in to your visual experience outdoors, and relevant DOOH messages enhance the value via existing screens throughout popular locations.
 
3. Data is (literally) where it’s at, locally and programmatically. According to BIA/Kelsey, marketers spent $1.4 billion on location-targeted mobile campaigns in 2012. By 2017, spending on location-targeted mobile advertising will reach $10.8 billion, representing a 52% share of all mobile ad dollars. (In fact, next month the IAB’s Location Data Working Group will release a primer on using location data for attribution and ad effectiveness.) DOOH is benefiting from this rapidly growing segment, using big data to reach the same mobile consumer on larger, higher impact screens and enabling marketers to craft cross-screen, location-based strategies to maximize the impact of advertising to consumers outside the home.       
 
At the same time, finding scale and ease of buying in DOOH is being made easier through programmatic conversations and data-driven media buying. Programmatic solutions are developing in DOOH, and are leading to a deeper connection with the mobile and interactive marketplaces. Programmatic DOOH has the potential to drive standardization and reduce overall fragmentation in the marketplace. The 1st and 3rd party data sets that allow buyers and sellers to better define audiences exposed to DOOH media is also rapidly evolving. Programmatic bidding enables buyers to more accurately target the most appropriate audience, while sellers benefit from yield optimization of their media assets.
 
DOOH_2.jpg
photo courtesy of Outfront Media
 
4. Out of Home creates a unique canvas for top-notch creativity. From street furniture and cinema ads to augmented reality and live experiences on outdoor screens and vehicles – the ability to build awareness and drive impressive results is getting easier in DOOH. Whether it’s part of a larger cross-media effort or a locally focused campaign, DOOH offers opportunities to reach a unique audience, creating unexpected parallels between location (as content and backdrop) and messaging. DOOH has huge potential to drive immediate impact and scale close to point of purchase; it also can garner award-winning praise and even the Direct Grand Prix at Cannes
 
5. There is a rise of new measurement and addressability opportunities in DOOH. New location and mobile data sets are leading to new ways of measuring attribution in experiential and out of home media. Location, as an audience definer, is just as important to DOOH as it is to mobile advertisers. Retargeting in the real world is more than just copying the online model; the best context is location – where we are and who we are. It is about delivering real-world context and campaign messages that are close to point of purchase. A consumer’s exposure to these mediums can now be verified beyond the self-reported opportunity to see, improving marketers’ confidence in their ability to isolate the impact of DOOH from other mediums in the cross-channel mix
Looking forward, the space is heating up. The number of digitally connected screens is growing, and all signals indicate that inventory and creative options in digital out of home media will continue to grow. Watch this space as the IAB and its DOOH Taskforce combine the talents of key players with out-of-home, mobile, local, and video expertise to build and expand upon this growth.
DOOH_3.jpg
photo courtesy of Titan

– See more at: http://www.iab.net/iablog/2015/01/top-5-trends-in-DOOH.html#sthash.hs4z2O5E.dpuf

The first IAB Matrix (Belgium): Digital = 35% of the investments intention July-Dec 2014

IAB Belgium has conducted this survey, called “IAB Matrix”, on the perception and use of digital advertising channels by advertisers and agencies in Belgium.

The goal of this study is to provide advertisers and all stakeholders a reliable indicator of the performance of different digital advertising channels in the Belgian market. An indicator that doesn’t yet exist for the Belgian market.

Check out hereunder the infographic with the main insights.

IAB Matrix Infographic - copie
Do you want more information about this study?