Rotterdam, 31 May 2011 - Due to substantial sales growth, the digital advertising market has outgrown the market for television advertising. The growth translated into net sales of EUR 962 million in 2010. This upward trend is expected to continue into the coming years, according to the Online Adspend Study 2010 which Deloitte carried out by order of IAB, the industry organisation for the online advertising and interactive marketing industry.
The study also shows that the reach of websites is not indicative for the advertising revenue. “The surveyed internet publishers with a relatively low reach often reported above-average advertising revenues”, says Roel van Rijsewijk, responsible for the Deloitte Online Business Innovation Program. “Companies can advertise very specifically and efficiently on websites for specific target groups. And they are willing to pay for that, too”.
The major advertiser in the online advertising market is the financial services industry, accounting for 11% of aggregate spending. Producers of consumer goods and telecom providers, each with a 10% market share, came in close second. The internet publishers surveyed in the study expect double digit sales growth for 2011. This implies that expenditure will this year exceed EUR 1 billion and particularly the share of online retail advertising is expected to increase strongly.
Remarkably, only EUR 16 million was spent on advertising tailored to website visitors based on their surf and search behaviour. This is less than 2% of aggregate sales. “Behavioural targeting is still relatively young in the Netherlands, hence the modest market share in 2010. At the same time, many of the parties surveyed estimate increased growth for CPM payment models in 2011. This expected growth can largely be related to all new possibilities in the field of behavioural targeting and profiling data,” says Emile van den Berg, IAB board member and responsible for the Ad spend portfolio. The majority of advertisements consists of fixed banners and displays for which the client pays based on the number of visitors that has viewed the advertisement, the so-called impressions. Advertising agency orders account for over 50% of the sales.
For the Online Adspend Study 2010 ordered by IAB 32, major Dutch internet publishers were questioned, jointly representing over 4,000 websites. The study has been carried out by the Deloitte Online Business Innovation Group, which is part of Deloitte Innovation and focuses on analysing the impact of digital channels on corporate business models.