Hungarian Digital Ad Spend Study

Hungarian Digital Ad Spend Study

IAB Adex Digital Ad Spend Study 1

IAB Adex IAB (Interactive Advertising Bureau) Adex digital ad spend reports are the industry benchmark numbers worldwide IAB US publishes its Adex study since 1996 IAB Europe started to publish its Pan-European Adex study in 2006, IAB Hungary joined in 2008 Hungarian online ad spend data is available since 2000 (Hungarian Advertising Association s Internet section), from 2008 digital ad spend data (online+mobile) by IAB Hungary 2

IAB Hungary Adex Hungarian Digital Ad Spend Study 3

IAB Hungary Adex Goal: providing thorough, accurate data about the Hungarian digital ad spend The study analyzes the net* digital ad spend IAB Hungary Adex is the industry standard ad spend study, having the following categories: Categories** Display Search Listing E-mail Subsegments Mobile Video Programmatic * This is equivalent to IAB Europe s gross definition ** From 2015 onwards the mobile ad spend is a subsegment while Display and Search include mobile. This change doesn t affect the total. 4

IAB Hungary Adex structure Key categories display search listing email mobil Subsegments video programmatic * From 2015 onwards the mobile ad spend is a subsegment while Display and Search include mobile. This change doesn t affect the total. 5

6 Partners

Partners IAB Hungary cooperated with PwC Hungary who collected market data, estimations and conducted validation discussions. Online Section of Hungarian Communication Agencies Association (MAKSZ) helped our work with providing aggregated agency data. 7

8 Methodology

IAB Hungary Adex 2016 methodology Report is based on data supplied by companies and estimations by experts Display: data collection and estimation (for global players) Search: estimation (for global players) Listing: estimation Email: data collection and estimation Subsegments (mobile, video, automated): data collection and estimation (for global players) 9

10 IAB Hungary Adex 2016

Key takeaways Strong, 22% growth Mobile share is 27% within display (85% of mobile ad spend goes to global players) Programmatic spend surpassed 1 billion HUF Local media players' market share of digital ad spend below 50% for the first time 11

2016 Digital ad spend 68,38 billion HUF + 22% YoY Net data 12

billion HUF digital s share of total ad spending (%) Digital ad spend in Hungary 80 50% 70 68,4 45% 40% 60 50 49,5 56,2 32,6% 35% 30% 40 30 20 10 0 0,9 1,2 1,6 2,4 4,3 0,8% 1,0% 1,3% 1,8% 2,8% 10,5 6,9 5,9% 4,1% 15,3 11,0% 8,1% 22,3 23,3 14,4% 27,2 31,1 35,7 23,4% 18,8% 15,9% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 41,2 26,5% 29,4% 25% 20% 15% 10% 5% 0% Net data * 2011-2016: net-net digital / net-net total ad spending (without DM) 13

billion HUF YoY % +22%, +12,2 bln HUF (YoY) Growth of digital advertising 14,0 100% 12,0 79% 12,2 90% 80% Net data 10,0 8,0 6,0 4,0 2,0 0,0 60% 52% 50% 41% 33% 3,6 2,6 1,9 0,8 0,4 0,4 46% 4,8 8,3 7,0 6,7 45% 1,6 7% 5,5 4,5 3,9 3,5 20% 22% 16% 14% 15% 13% 14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 70% 60% 50% 40% 30% 20% 10% 0% 14

IAB Hungary Adex 2016 Segment Data 15

million HUF Display search listing email growth in each category except e-mail 35 000 30 000 28 967 26 936 25 000 20 000 15 000 18 149 20 962 23 243 16 121 19 191 22 262 11 242 10 000 5 000 0 Net data 9 326 8 035 6 062 1 246 1 341 824 Display Search Listing E-mail 2013 2014 2015 2016 1 239 16

market share Display search listing email segments market share is steady 50% 45% 40% 44% 42% 41% 42% 39% 39% 40% 39% 35% 30% 25% 20% 15% 15% 16% 17% 16% 10% 5% 2% 3% 2% 2% 0% Display Search Listing E-mail 2013 2014 2015 2016 17

billion HUF billion HUF YoY % Display: +25% growth mobile s share in display is 27% 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 50% 29,0 45% 40% 23,2 35% 21,0 30% 17,3 18,16 30% 13,8 13,8 14,8 15,3 25% 25% 20% 15% 13% 10,8% 15% 7% 10% 3% 5% 5% 0% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 7,9 2,3 4,6 21,1 0,5 1,2 0,3 18,6 18,7 16,8 16,9 15 100% 80% 60% 40% 2% 3% 7% 11% 20% 27% 98% 97% 93% 89% 80% 73% 20% 0% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Net data, rounded values desktop mobile desktop mobile 18

billion HUF billion HUF YoY % Search: +21% growth mobile s share is 33% 30 25 20 15 10 5 0 26,9 22,3 192% 19,2 16,1 12,8 9,8 7,5 5,2 3,8 37% 44% 31% 30% 26% 19% 16% 21% 2008 2009 2010 2011 2012 2013 2014 2015 2016 250% 200% 150% 100% 50% 0% 30,0 25,0 20,0 15,0 10,0 5,0 0,0 8,8 4,8 2,4 16,8 17,5 18,1 0,7 0,4 14,3 12,4 9,8 2011 2012 2013 2014 2015 2016 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3% 5% 12% 21% 33% 100% 97% 95% 88% 79% 67% 2011 2012 2013 2014 2015 2016 desktop mobile desktop mobile Net data, rounded values 19

billion HUF YoY % Listing: +21% growth 12 11,24 70% 10 9,33 60% 8 8,04 50% 40% 6 4 2 21% 3,5 3,5 0% 4 14% 4,67 4,65 17% 0% 6,06 30% 33% 16% 21% 30% 20% 10% 0% Net data 0 2008 2009 2010 2011 2012 2013 2014 2015 2016-10% 20

million HUF Listing subsegments 5 000 + 17% 4 979 4 500 4 238 4 000 3 658 3 500 3 000 + 17% 2 500 2 000 1 500 1 000 500 1 797 2 267 1 327 1 080 1 007 900 + 23% 1 638 949 812 643 545 + 18% 1 123 480 275 275 + 46% 700 2 262 1 933 1 738 1 280 + 35% 760 650590 472 541 400 Net data - Classifieds / Job Classifieds / Real Estate Classifieds / Auto Classifieds / Other Price comparison Auction 2012 2013 2014 2015 2016 21

million HUF YoY % E-mail marketing 1600 70% 1400 1200 50% 1 246 1 341 1 239 60% 50% 1000 800 750 850 900 950 880 824 51% 40% 30% 600 13% 20% 400 6% 6% 8% 10% 200-7% -6% -8% 0% 0 2008 2009 2010 2011 2012 2013 2014 2015 2016-10% Net data 22

IAB Hungary Adex 2016 Subsegments 23

million HUF YoY % Mobile ad spend 79% growth Market share* 1% 3% 6% 12% 21% 30% 18 000 16 707 300% 16 000 14 000 245% 250% 12 000 200% 10 000 8 000 143% 9 336 150% 6 000 4 000 2 000-117% 1 943 896 260 4 722 98% 79% 2011 2012 2013 2014 2015 2016 100% 50% 0% Net data * Compared to relevant segment (Display+Search) 24

Mobile share of display & search 100% 90% 80% 70% 40% 37% 51% 51% 53% 60% 50% 100% 40% 30% 20% 60% 63% 49% 49% 47% 10% 0% 2011 2012 2013 2014 2015 2016 Net data display search 25

million HUF YoY % Video steady growth 2500 200% 2 169 180% 2000 144% 1 956 160% 140% 1500 120% 1 225 100% 1000 80% 500 285 76% 503 60% 11% 60% 40% 20% 0 2012 2013 2014 2015 2016 0% Net data 26

million HUF Automated trading programmatic: 77% growth and surpassed 1 bln HUF! 10 000 9 000 9 053 Automated 8 000 7 000 6 000 6 325 Programmatic RTB 5 000 4 388 4 000 3 000 2 000 1 000 0 1 028 944 580 513 85 85 automated programmatic RTB 2014 2015 2016 Net data Explanation: Google (non-search) and Facebook spend are automated, but not programmatic 27

IAB Hungary Adex 2016 Ad spend on Local Global media players 28

market share (%) billion HUF Local Global trend milestone: global share is above 50% 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 34,9 33,5 28,2 28 25,6 22,2 23,9 18,6 18,9 19,7 19,9 20,8 19 14,8 11,3 8 3,7 4,9 2008 2009 2010 2011 2012 2013 2014 2015 2016 71% 64% 58% 54% 52% 50% 49% 83% 79% 29% 36% 42% 46% 48% 50% 51% 17% 21% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net data global local 29

billion HUF billion HUF Local Global trend growth of ad spending still higher on global players YoY growth (billion HUF) YoY growth (%) 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 6,9 5,3 4,9 4,2 4,1 3,6 3,1 3,3 3,4 2,6 1,2 1,4 0,8 0,9 0,4 0,2 2009 2010 2011 2012 2013 2014 2015 2016 global local 70% 60% 50% 40% 30% 20% 10% 0% 63% 41% 32% 32% 28% 26% 25% 17% 19% 15% 10% 2% 4% 5% 7% 1% 2009 2010 2011 2012 2013 2014 2015 2016 Difference between ad spendings on global - local players 18,0 13,0 8,0 3,0 14,9 14,0 11,7 8,6 6,0 3,2 1,7 0,2-1,5-2,0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net data 30

Local Global trend display: global players are gaining share 100% 90% 7% 11% 15% 19% 19% 25% 28% 80% 70% 60% 50% 40% 100% 93% 89% 85% 81% 81% 75% 72% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015 2016 local global 31

Local Global trend mobile: global dominance 100% 90% 80% 70% 50% 60% 80% 82% 85% 85% 50% 100% 40% 30% 20% 50% 10% 0% 20% 18% 15% 15% 2011 2012 2013 2014 2015 2016 local global 32

IAB Hungary Adex 2016 Appendix 33

Digital Ad Market 2013-2016 Key categories (YoY, share) 2013 spend 2014 spend 2015 spend 2016 spend Change 2016/2015 Share Display 18 149 mln HUF 20 962 mln HUF 23 243 mln HUF 28 967 mln HUF 25% 42% Search 16 121 mln HUF 19 191 mln HUF 22 262 mln HUF 26 936 mln HUF 21% 39% Listing 6 062 mln HUF 8 035 mln HUF 9 326 mln HUF 11 242 mln HUF 21% 16% E-mail 824 mln HUF 1 246 mln HUF 1 341 mln HUF 1 239 mln HUF -8% 2% Total 41 155 mln HUF 49 433 mln HUF 56 172 mln HUF 68 385 mln HUF 22% - Net data 34

Digital Ad Market 2013-2016 Subsegments (YoY, share) 2013 spend 2014 spend 2015 spend 2016 spend Change 2016/2015 Share Mobil 1 943 mln HUF 4 722 mln HUF 9 336 mln HUF 16 707 mln HUF 79% 24% 2013 spend 2014 spend 2015 spend 2016 spend Change 2016/2015 Total automated - mln HUF 4 388 mln HUF 6 325 mln HUF 9 053 mln HUF 43% 13% Programmatic - mln HUF 85 mln HUF 580 mln HUF 1 028 mln HUF 77% 1,5% RTB - mln HUF 85 mln HUF 513 mln HUF 944 mln HUF 84% 1,4% Share 2013 spend 2014 spend 2015 spend 2016 spend Change 2016/2015 Video spend 503 mln HUF 1 225 mln HUF 1 956 mln HUF 2 169 mln HUF 11% 3% Share Net data 35

Digital Ad Market 2013-2016 Listing subsegments (YoY, share) 2013 spend 2014 spend 2015 spend 2016 spend Change 2016/2015 Share Listing 6 062 mln HUF 8 035 mln HUF 9 326 mln HUF 11 242 mln HUF 21% 16% 1. Classifieds 3 917 mln HUF 5 550 mln HUF 6 513 mln HUF 7 739 mln HUF 19% 11% Auto 643 mln HUF 812 mln HUF 949 mln HUF 1 123 mln HUF 18% 2% Job 2 267 mln HUF 3 658 mln HUF 4 238 mln HUF 4 979 mln HUF 17% 7% Real estate 1 007 mln HUF 1 080 mln HUF 1 327 mln HUF 1 638 mln HUF 23% 2% 2. Price comparison 1 280 mln HUF 1 738 mln HUF 1 933 mln HUF 2 262 mln HUF 17% 3% 3. Auction 590 mln HUF 472 mln HUF 400 mln HUF 541 mln HUF 35% 1% 4. General classifieds 275 mln HUF 275 mln HUF 480 mln HUF 700 mln HUF 46% 1% Net data 36

37 IAB Hungary

38 iabhublog.com