The document provides an analysis of online advertising expenditure (AdEx) in Europe in 2011. Some of the key findings include: - Total online advertising spend in Europe reached €20.9 billion in 2011, up 14.5% from 2010, outpacing overall ad growth of 0.8%. - The top 10 markets by spend were UK, Germany, France, Italy, Netherlands, Russia, Spain, Sweden, Norway, and Denmark. Russia saw the most significant change, surpassing Spain as the sixth largest market. - Central and Eastern European markets grew faster than Western Europe, with Russia and Croatia seeing over 40% growth. Overall CEE markets increased their share of European online ad spend.

1. ADEX
BENCHMARK
2011
EUROPEAN ONLINE
ADVERTISING EXPENDITURE
Published 9th July 2012

2. CONTENTS
3 Introduction
4 About this report
5 Executive Summary
Section 1 - AdEx 2011 Analysis
6 2011 Growth in context
8 26 Markets in perspective
12 Share of formats
Section 2 - Online advertising overview by sector
13 Display
16 Classifieds & Directories
19 Paid-for-search
22 Mobile
23 Video
Section 3 - Overview by country
24 Western Europe
28 Central & Eastern Europe
Section 4 - Background data
31 TOP properties December 2011
36 TOP ad publisher sites 2011
39 Internet penetration in Europe 2011
Section 5 - Appendices
41 Appendix i
42 Appendix ii
43 Appendix iii
43 Appendix iv
47 Our research partners
48 About IAB Europe
49 And finally
2 IAB Europe AdEx Benchmark 2011

3. INTRODUCTION
This year’s report documents the ongoing success story for online
advertising. As of 2011, on average 20% of all advertising budgets Digital media and digital marketing are and will remain a
in Europe were dedicated to online. One out of five advertising key growth engine of the economy in Europe. The sus-
Euros is now invested in online platforms. tainable success of the digital economy continues even
and especially in tough economic times. Not only the
Initially, the IAB network discussed including 10 countries by 2010 rapid development of digital markets in Eastern Europe
and hoped to reach an average of 10% online market share. The shows that this pan-European trend is far from coming
reality today looks quite different. The 2011 AdEx Benchmark to an end - especially the remarkable figures in Europe’s
includes 26 countries and the average online markets share in core countries just show that the digitization of the
Europe is 20%. Despite the recession, our industry has been per- economy is continuing unabatedly. This also is reflected
forming very well, growing 14.5% in 2011. Direct response and by the latest AdEx Benchmark report.
branding formats are flourishing, indicating that advertisers are
considering digital advertising for various aspects of their market- Thomas Duhr, Executive Sales Manager,
ing and communication strategies. United Internet Media AG
In 2011, media buyers invested 21 billion Euros online in our con-
tinent, bringing our market close to the size of the US and also
putting online within the top 3 media in each country, in terms of
ad spend.
The currency of our success is ‘data’ as it makes advertising more
relevant for the consumer and more efficient for the advertiser.
However, as we continue to integrate data in online advertising we
have to act with respect, in order to build trust and transparency
whilst maintaining standards and simplicity.
Alain Heureux, CEO & President, IAB Europe
© IAB Europe 3

4. ABOUT THIS REPORT
The sources of the online advertising spend data contained within
this report are the annual industry benchmarking studies run by
each national Interactive Advertising Bureau (IAB) in Europe. The
national benchmarking studies represent the income of thousands
of websites and online advertising businesses.
The reported results are considered the closest measurement of
online advertising revenues across Europe as the data is compiled
directly by local IABs based on information supplied by compa-
nies selling advertising online in each country. Only IABs that were
able to provide 12 full months of advertising expenditure data are
included. With the entry of IAB Serbia, the AdEx Benchmark cov-
ered 26 local IABs in 2011.
The data for this report is stated on the basis of actual gross in-
come (the amount of actual spend invoiced by the publisher in-
cluding any agency commission). To avoid any double-counting,
production costs and pan-regional ad spend are taken out of the IHS Screen Digest does not audit the information or the data from
figures provided by the local IABs. local IABs and provides no opinion or other form of assurance with
respect to the information. Only aggregate results are published
The report incorporates data from the following online advertising and individual company information is held in strict confidence by
formats: the audit partners of local IAB studies.
• Display
• Classifieds & Directories
• Paid-for-search
Where national IABs report data for spend on mobile online adver-
tising this is incorporated into the relevant advertising format total.
IAB Europe in partnership with IHS Screen Digest collates and
aggregates the data and makes the adjustments necessary to en-
able the data to be comparable. Full details of this process for
each country are provided in Appendix iv.
The result is comparable data based on actual revenues from
across Europe. This is the sixth edition of the report and therefore
once again we are able to include year-on-year comparisons in
for those countries that have provided data for at least two years.
4 IAB Europe AdEx Benchmark 2011

5. EXECUTIVE SUMMARY
Despite the continued weak macroeconomic conditions across In Europe, individual market growth in 2011 ranged from 55.5%
Europe and globally, Europe’s online advertising market contin- in Russia and 40.0% in Croatia, to 5.5% in Norway and 4.6% in
ued to grow double-digit in 2011. Investment in all online formats Romania. Central and Eastern European (CEE) markets increased
increased during this period 14.5% year-on-year1, with paid- their share of total European online ad spend from 10.1% in 2010
for-search leading the surge, closely followed by display. Online to 11.8% in 2011. It is important to note that the UK and Germany
growth outperformed the overall advertising market, which ex- alone account for 45.2% of all European online ad spend. Russia
cluding online grew at a sluggish 0.8% in 2011. has established itself as the sixth biggest market with a value of
€1.12bn, buoyed particularly by a surging search market.
The European online advertising market crossed the €20 billion
mark for the first time at €20.9 billion in 2011, up from €18.3 billion Paid-for-search and display drove online advertising growth in
2
in the previous year . Online accounted for 21.7% of European 2011. Increasing 17.9%, paid-for-search reached €9.72 billion,
advertising spend. closely followed by display which rose by 15.3% to €7.03 billion.
Even Classifieds & Directories, a format which usually suffers in
The USA remains slightly ahead of Europe in terms of online ad- a tough economic environment due to high exposure to the job,
vertising revenues which amounted to €24.5 billion in 2011 follow- real-estate, and automotive markets, increased by 5.7% in 2011
ing year-on-year growth of 21.9%. Apart from a healthy online in- to just over €4 billion.
dustry, US growth also benefitted from the presidential primaries.
The present report provides detailed analysis of developments in
each format across the 26 participating countries.
Online grows 14.5% in 2011
25
20 14.5% €20.9bn
€18.3bn
15
€bn
10 European online advertising: year-on-year growth (%)
5
25
0 40.0%
2010 2011 21.3%
20 17.9%
16.1% 15.4% 15.3% 14.5%
15
Online ad spend: Europe vs USA %
10 7.4%
5.7%
25 5
€24.5bn
20 €20.9bn 0
€20.1bn Paid-for-search Display Classified & Total
€18.3bn Directories
15 2010 2011
€bn
10
5 1. Year-on-year growth is calculated excluding the ‘other’ category
to maintain comparability across countries. Serbia was an exception
0 to this rule, where most of ‘other’ constituted of social media spend,
2010 2011 which is normally reported as part of display advertising.
2. At constant 2011 currency exchange rates.
Europe USA
© IAB Europe 5

6. SECTION 1 - AdEx Benchmark 2011 Analysis
2011 GROWTH IN CONTEXT
ONLINE ADVERTISING STABILISES IN 2011 markets. Online was also affected, but nevertheless outperformed
all other media and achieved an overall growth of 4.5%. Some
Spend on European online advertising has grown every year since of the emerging online markets saw a slight decline though, as
IAB Europe began benchmarking the market in 2006. the sector was still fragile. The overall growth was maintained by
paid-for-search, which managed to grow 10.8% despite tough
In 2007, spend on online advertising grew by 40%. This was economic conditions, as advertisers were reassured by the direct
driven by substantial growth in the dominant high value Western response payment structure.
European markets such as Germany, the UK, and France.
In 2010, Europe’s online advertising industry rebounded with an
As these markets matured in 2008, their growth decelerated and increase of 15.3%, indicating a recovery from the 2009 slowdown.
clustered around 20%. High growth was still present in some Display led this surge with a 21.3% increase, as new advertisers
emerging markets like Poland and Slovenia, however the total val- entered the medium and existing online advertisers increased their
ue of these markets was not sufficiently large to have a substantial spend on branding campaigns.
impact on the overall European growth rate.
In 2011, online maintained its double-digit growth despite tough
In 2009, the effect of the economic recession was strongly felt macroeconomic conditions with a year-on-year growth rate of
in the advertising sector which saw significant declines in many 14.5%, indicating the ongoing confidence that advertisers place
in online as an advertising medium.
Online advertising growth over time
40%
40
35
30
25
%
20.2%
20
15.3%
14.5%
15
10
4.5%
5
0
2007 2008 2009 2010 2011
6 IAB Europe AdEx Benchmark 2011

7. SECTION 1 - AdEx Benchmark 2011 Analysis
2011 GROWTH IN CONTEXT
ONLINE OUTPERFORMED WEAK ECONOMY 2011, helped by the reliable measure of return-of-investment
(ROI), as evidenced by the 17.9% increase in the format. Advertis-
Advertising markets are in general very susceptible to changes in ers increasingly also recognise online as a brand advertising medi-
the macroeconomic environment. In the context of the European um. This is reflected in a growing video share, which commanded
sovereign debt crisis, high unemployment and cutbacks in con- 7.6% of all online display ad spend in 2011.
sumer spending, advertising spend suffered disproportionately on
most media in 2011. Secondly, the increased use of demographic, behavioural and
other consumer data in online display advertising, paired with al-
1
Total European advertising across all media grew by 3.6% in gorithmic processing, allows enhanced targeting capabilities that
2011, but would have experienced a mere increase of 0.8% with- can improve cost efficiency.
out the contribution of online. In Western Europe, total advertis-
ing excluding online would have declined by 1.0%, but with the Thirdly, there is a long-term trend for advertisers to shift ad budg-
11.5% surge in online ad markets, the region ended the year with ets from mature to emerging markets, which is fuelling their online
a growth of 1.3%. Online also lifted CEE markets from what would economy. in 2011, CEE countries constituted 11.8% of European
have been a 5.5% growth in ad markets excluding online to a online ad spend, up from 10.1% in the previous year.
9.1% total media advertising growth rate year-on-year.
In comparison to traditional media, online advertising is not as ex-
posed to macroeconomic fluctuations.
Firstly, online offers a diversity of formats and payment structures
1. The 26 countries participating in the study
to choose from. Growth in paid-for-search remained resilient in
Online advertising in context: Year-on-year growth
19.7%
20
14.5%
15
11.5%
10 9.1%
%
5.5%
5 3.2% 3.6%
1.5% 1.3% 1.7%
0.8%
0
-1.0%
WE CEE Total Europe
-5
Nominal GDP All media advertising Online All media advertising
excl. online
© IAB Europe 7

8. SECTION 1 - AdEx Benchmark 2011 Analysis
26 MARKETS IN PERSPECTIVE
Volume – Online advertising spend distribution stable in 2011
2011 did not show any significant shifts in the composition of the top 10 countries investing in online advertising versus 2010. The most
notable change was Russia’s assertion as the sixth largest online market in Europe at €1.12 billion, surpassing Spain, whose expenditure
remained below €1 billion. Russia is still the only CEE market in the top 10 online advertising spenders, with a €752 million difference to the
next country within the CEE region (Poland).
The UK remained the largest online advertising market and is the first to have exceeded €5 billion. It accounted for 26% of all European
online advertising, down from 27% in 2010. In second place, Germany’s share stood at 19% in 2011 corresponding to total market value
of €4 billion. France maintained its bronze medal in 2011, whereas Italy surpassed the Netherlands to claim fourth place. The growth rates
of these countries ranged between 8% and 15%, but were not significant enough to alter their ranking within the top 10.
Top 10: Total by country 2011 and 2010 (€m)
UK €5,510m
Germany €3,959m
France €2,287m
Italy €1,249m
Netherlands €1,200m
Russia €1.121m
Spain €925m 2011
2010
Sweden €687m
Norway €558m
Denmark €524m
0 1,000 2,000 3,000 4,000 5,000 6,000
Rest of Europe: Total by country 2011 and 2010 (€m)
Poland €439m
Switzerland €422m
Belgium €365m
Turkey €360m
Austria €296m
Czech Rep €269m
Finland €254m
Ireland €132m
Hungary €108m
Greece €100m 2011
Slovakia €45m 2010
Slovenia €32m
Bulgaria €30m
Croatia €26m
Romania €22m
Serbia €12m
0 100 200 300 400 500
8 IAB Europe AdEx Benchmark 2011

9. SECTION 1 - AdEx Benchmark 2011 Analysis
26 MARKETS IN PERSPECTIVE
Growth – CEE region outpaces Western Europe
The markets which demonstrated the highest growth in online advertising in 2011 were countries from the CEE region. Russia led the
group with a growth of 55.5%, driven mostly by a surging search market and expanding internet population. Croatia, Serbia, and Slove-
nia which are display-driven markets, grew by 40.0%, 35.6%, and 31.1%. Slovakian and Polish online ad markets increased 29.7% and
23.1%, with strong growth across formats, while Turkey exhibited a robust growth rate at 22.4%.
CEE countries grew the strongest in 2011
60
55.5%
50
40
40.0%
35.6%
%
31.1%
30
29.7%
23.1%
22.4%
20
19.7%
15.5%
15.2%
15.1%
14.3%
14.2%
14.1%
13.5%
13.3%
12.8%
12.6%
11.3%
10.7%
11.0%
10
9.9%
8.8%
7.9%
5.5%
4.6%
0 ia ia ia ia ia d y e ly d rk n a n y s a y e y a
ss oat rb en ak lan rke eec Ita rlan ma UK land de gari pai gar and stri an Rep gium anc land rwa ani
Ru Cr Se Slov Slov Po Tu Gr e en
itz D Ire Swe Bul S un erl Au erm ch el Fr Fin o om
B N R
H th G ze
Sw Ne C
CEE WE
The Western European region also experienced healthy growth ranging from 5.5% in Norway, the most mature market with the highest
online ad spend per capita, to 19.7% in Greece, a nascent country in terms of online advertising which demonstrates dynamics more
representative of the CEE market, despite the country’s huge macroeconomic uncertainty.
© IAB Europe 9

10. SECTION 1 - AdEx Benchmark 2011 Analysis
26 MARKETS IN PERSPECTIVE
Online share of total media ad spend – 1 in 5 European advertising Euros invested online
Pairing online advertising data provided in this report with IHS Screen Digest valuations1 for all other media (television, print, cinema, radio,
and out-of-home) reveals substantial variations in the online advertising market share across Europe.
Higher market share indicates a more developed market, where the majority of advertisers invest in online in some way, and where ad-
vertisers have a wide variety of formats and online channels from which to choose. Low market share for online advertising suggests that
a market has headroom for growth, as it indicates that that there are still plenty of advertisers in the market who have not yet devoted
themselves to the online medium.
Online market share of total advertising ad spend across Europe reached 21.7% in 2011. This means that more than 1 in 5 European
advertising Euros was invested online. The UK was the most developed online market in Europe at 35.9% share in 2011, while Greece
despite its strong growth of 19.7%, occupied the last position with a share of 6.8%.
Western European markets had a higher market share at 22.7% compared to the CEE equivalent of 16.9%. However, looking at national
markets individually reveals that market shares within Western Europe on the one hand, and Central and Eastern Europe on the other are
not homogeneous. For instance, Austria and Switzerland exhibit a low online share of their total media advertising spend at 13.0% and
13.9%, lower than most CEE countries.
Market shares calculated from IAB Europe and IHS Screen Digest data may vary from those published in the local markets by the national
IABs. This is because the national IABs may have used a source other than IHS Screen Digest for the valuation of the total advertising
market in that country.
1. IHS Screen Digest valuations were used for all markets except for Poland and Hungary, upon request. For Poland we used Starlink figures and
for Hungary we used Hungarian Advertising Association figures.
2011 online share of all media ad spend (%)
40
35.9%
35
30
28.9%
27.9%
27.9%
25
24.9%
23.4%
22.7%
%
21.7%
21.4%
20.6%
20
18.8%
18.1%
17.1%
16.9%
16.2%
15.9%
15.9%
15.9%
15
15.2%
15.0%
14.8%
14.2%
13.9%
13.8%
13.0%
13.0%
10
7.3%
7.2%
5
6.8%
0 s k y y y y y
UK Rep and ar rwa eden WE rope an ance gar enia gium CEE land land pain ssia Ital akia land garia rland rke oatia stria erbia ania eece
m v S Ru lov Ire Bul itze
ch herl Den No Sw Eu erm Fr Hun Slo Bel Po Fin Tu Cr Au S om Gr
e
Cz Net tal G S
Sw
R
To
10 IAB Europe AdEx Benchmark 2011

11. SECTION 1 - AdEx Benchmark 2011 Analysis
26 MARKETS IN PERSPECTIVE
Online ad spend per capita – Scandinavian countries most mature in Europe
Using IHS population numbers, ad markets exhibit variation in online spend per capita across the region.
Online ad spend per capita is a metric that helps to evaluate the maturity and scope for development of a market. It shows how much an
online consumer is worth in terms of advertising in a given market. By use of population data, online ad spend per capita uses a normalised
basis and is therefore well-suited to compare and benchmark online advertising markets. It highlights the maturity of an online market ir-
respective of its size or absolute revenues incurred.
The most mature online markets in Europe in 2011 were the Scandinavian countries (Norway, Denmark, and Sweden) and the UK. Nor-
way led at €113.4 per capita indicating that advertisers have already embraced online across formats. On the other hand, monetisation in
Romania is still lagging behind as online ad spend per capita stood at a mere €1.0. The average online ad spend per capita in 2011 was
€33.5, below which value we find all high growth markets, such as Russia, Croatia and Serbia at €7.8, €6.0 and €1.7 per capita.
Online ad spend per capita in 2011
€113.4
120
€95.4
€87.8
Online ad spend/capita (€)
100
€72.8
€72.1
80
€53.4
€48.4
€47.1
60
€36.1
€35.1
€34.1
€33.5
€29.2
€25.6
40
€20.5
€19.5
€15.6
€11.5
€10.8
€8.8
€8.2
€7.8
20
€6.0
€4.9
€4.1
€1.7
€1.0
0
ay rk s y y y y
UK eden and rland an land ance stria gium Avg land Rep Ital pain enia land gar eece akia ssia oatia rke garia erbia ania
rw ma rl S lov Po un Gr v Ru Tu Bul
No Den e
Sw the witz Ge
rm Fin Fr Au Bel ean Ire ech S H Slo Cr S om
R
Ne S ro
p Cz
Eu
Online ad spend per capita has grown persistently despite adverse external conditions or the state of all other media advertising since
2005. Whereas total ad spend per capita and TV ad spend per capita fell in 2009 (during the recession) and have yet to return to 2008
levels, online has consistently increased its ad spend per capita, steadily catching up to TV ad spend per capita. This points towards an
improved monetisation of online audiences over time.
Online ad spend per capita continues to grow despite total ad spend per capita decline
Online ad spend/capita (€)
150
120
90
60
30
0
2005 2006 2007 2008 2009 2010 2011
Online TV Total Media
© IAB Europe 11

12. SECTION 1 - AdEx Benchmark 2011 Analysis
SHARE OF FORMATS
In 2011, paid-for-search remained the largest segment of online Paid-for-search remains the largest segment
advertising. Both paid-for-search and display formats increased
their share of online advertising. Paid-for-search climbed from
100
45.1% in 2010 to 46.5% in 2011. Display had a share of total on- 20.9% 19.3%
line advertising of 33.4% in 2010 and managed to arrive at 33.6% 80
in 2011. This was at the expense of Classifieds & Directories,
60 45.1% 46.5%
%
whose share of the online ad pie diminished from 20.3% in 2010
40
to 19.3% in 2011. Its share loss is due to the faster expansion of
the other formats and an adverse economic environment to which 20 33.4% 33.6%
the category is particularly susceptible.
0
2010 2011
Display Paid-for-search Classifieds & Directories Other
Share of formats by region
Western Europe: share of formats in 2011 CEE: share of formats in 2011
0.7% 0.6%
6.9%
20.9%
32.0%
45.1%
47.4%
46.3%
Display Display
Paid-for-search Paid-for-search
Classified & Directories Classified & Directories
Other Other
Paid-for-search dominated Western European online ad spend in 2011, accounting for 46.3% of the total. Display came second with
32.0%.
The Central and Eastern European online advertising market in aggregate is evenly divided among paid-for-search at 47.4% and display
at 45.1%. Due to a strong Russian search market, making up 60.8% of the national online advertising total, the role of search across the
region is positively skewed. Excluding Russia, display appears as the prominent format in the region at 50.0% as search is lagging behind
in most markets at 36.3% on average.
12 IAB Europe AdEx Benchmark 2011

13. Section 2 - Online advertising overview by sector
DISPLAY
Display surge persists in 2011
YoY growth in European Display 2007-2011
• Value: €7.03bn 45
39.0%
• Accounts for 33.6% of all online advertising spend 40
• YoY growth of 15.4% 35
30
• Top five countries by value: Germany, UK, France, Italy,
%
25 21.3%
Netherlands 20 15.1% 15.4%
• Top five by growth: Serbia, Croatia, Russia, Slovakia, 15
10
Slovenia 0.3%
5
0
2007 2008 2009 2010 2011
At 15.4% growth, display ad spend grew again double-digit in 2011, following 21.3% in 2010. This reinforced the strength of the format,
which even in an economically weaker 2011 managed to grow at similar levels to 2010, when it took advantage of an automatic rebound
in advertising investments after the 2008 and 2009 recession. Despite this growth however, display’s share of online ad spend remained
static at 33.6%, only 0.2% higher than in 2010.
There is a number of trends behind this development as advertisers are both increasing ad spend on branding campaigns, but also invest-
ing more in data-driven display advertising. Furthermore, online display advertising is increasingly benefitting from growth in pan-regional
ad spend. This approach is widespread in TV and online can leverage this as TV and online are increasingly booked in conjunction rather
than against each other.
Online branding campaigns
The increase in online branding campaigns of 2010 continued in 2011. This is apparent as more FMCG companies invested in online
display. In the UK, for instance, consumer goods constituted 14.8% of display spending, only second after financial services at 15.0%. In
2011, branding campaigns made up 42.3% of UK online display, up from 40% in 2010.This represents a 26.1% increase in online display
brand advertising versus 13.4% for total display.
Furthermore, online video, the online format that most resembles TV as an effective brand messenger, is also becoming more prominent.
In 2011, it made up 7.6% of European online display with two markets (UK, Germany) spending over €100 million on video ads.
Data-driven display
Display advertising growth was also driven by the application of so-called ‘big data’. Big data relies on the rich metrics received through
the online medium to plan display advertising. Using ad exchanges, real-time bidding and algorithmic trading, advertisers can reach both
broad and niche audiences that meet their exact criteria. These data-driven techniques can increase the cost-efficiency of online advertis-
ing, maximising cheaper, remnant inventory to reach consumers.
© IAB Europe 13

14. Section 2 - Online advertising overview by sector
DISPLAY
Top 10: Display value by country 2011 and 2010 (€m)
Germany €1,379m
UK
€1,299m
France
€636m
Italy
€556m
Netherlands
€468m
Russia 2011
€439m
Spain 2010
€402m
Sweden
€242m
Poland
€198m
Norway
€198m
500 1000 1500
Rest of Europe: Display value by country 2011 and 2010 (€m)
Denmark €186m
Turkey €170m
Switzerland €151m
Czech Rep €142m
Austria €106m
Belgium €105m
Finland €102m
Hungary €55m
Ireland €52m
Greece €36m 2011
Slovenia €25m
Slovakia €24m 2010
Romania €20m
Bulgaria €16m
Croatia €14m
Serbia €7m
50 100 150 200
Advertising beyond the banner: Advertisers are experi- Branding is the big trend and a key for digital evolu-
menting with long form storytelling on the web enabling tion! More than any other approach in online marketing,
them to better connect with consumers, and to deliver branding will truly revolutionize digital advertising. While
their brand goals. Richer creative canvases, multi-screen performance goals are still working fine in their seg-
touch points, and branding metrics to prove success, ments, only branding has the strength to pave the way
along with the power of consumers acting as re-circula- for the big advertisers to use the internet for mass reach
tors of brands’ communications are all fuelling growth in campaigns as in TV or print. Even further than in classic
this area. Premium brand advertising is finding a home media, the vast opportunities digital media has to offer
on the web. such as targeting and data, will take campaign plan-
ning as well as efficiency to a whole new level. Many big
Laura Chaibi, Research Director EMEA, Yahoo! brands are starting to make online their home already -
the others will follow without a doubt.
Stephan Nöller, CEO, nugg.ad
14 IAB Europe AdEx Benchmark 2011

15. Section 2 - Online advertising overview by sector
DISPLAY
Display value and growth
1,600 60%
1,400
50%
1,200
40%
1,000
30%
800
600 20%
400
10%
200
Ge U F It N R S S P N D Tu S C A B F H Ir G S S R B C S 0%
rm K ranc aly eth uss pain wed olan orw enm rke witz zec ustr elgi inlan ung elan ree love lova om ulga roa erbi
er ia en d ay ar y er h R ia um d ar d ce n an tia a
an
y
e lan k lan e y ia kia ia ria
ds d p
Value (€m) YoY Growth (%)
Top 10: 2011 YoY Display growth by country
Serbia
Croatia
Russia
Slovakia
Slovenia
Ireland
Greece
Turkey
Spain
Austria
0 10 20 30 40 50 60
%
Rest of Europe: 2011 YoY Display growth by country
Finland
Italy
Germany
Poland
France
UK
Netherlands
Denmark
Switzerland
Czech Rep
Sweden
Belgium
Bulgaria
Romania
Norway
Hungary
0 2 4 6 8 10 12 14 16 18 20
%
© IAB Europe 15

16. Section 2 - Online advertising overview by sector
CLASSIFIEDS & DIRECTORIES
1
Classifieds & Directories ad spend increased despite shaky economy
• Value: €4.03bn
• Accounts for 19.3% of all online advertising spend
• YoY growth of 5.7%
• Top five countries by value: UK, France, Germany, Norway, Italy
• Top five by growth: Slovakia, Poland, Serbia, Hungary, Spain
Classifieds & Directories grew 5.7% in 2011, less than the format’s 7.5% increase in 2010. This is due to the weakening of the European
economy. Classifieds & Directories advertising is dominated by the job, real estate, and automotive sectors. The adverse macroeconomic
conditions with struggling job, real estate, and automotive markets, generated more caution among advertisers when investing in Clas-
sifieds & Directories ads.
Top 10: Classifieds & Directories value by country 2011 and 2010 (€m)
UK €905m
France €739m
Germany €712m
Norway €243m
Italy €239m
Netherlands €202m
2011
Sweden €201m
2010
Switzerland €143m
Belgium €120m
Denmark €113m
200 400 600 800 1,000
1. Classifieds & Directories ad spend is available for 25 countries. Russia has not been included in this category on instructions by IAB Russia.
16 IAB Europe AdEx Benchmark 2011

17. Section 2 - Online advertising overview by sector
CLASSIFIEDS & DIRECTORIES
Rest of Europe: Classifieds & Directories value by country 2011 and 2010 (€m)
Poland €81m
Finland €81m
Austria €68m
Spain €64m
Turkey €29m
Ireland €26m
Czech Rep €25m 2011
Hungary €17m 2010
Slovakia €7m
Croatia €5m
Greece €5m
Bulgaria €3m
Slovenia €1m
Serbia €1m
Romania €0.2m
10 20 30 40 50 60 70 80 90
Classifieds & Directories value and growth
1,000 40%
900 30%
800 20%
700
10%
600
0%
500
-10%
400
-20%
300
-30%
200
-40%
100
0 -50%
e y y y s n k a n y y a a e a a a a
UK anc an rwa Ital and de land gium ar land land stri pai rke land Rep gar aki oati eec gari eni rbi ani
F r erm o
N rl we zer el enm Po Fin Au
e S it B D
S Tu Ire ch un lov Cr Gr
S ul lov Se om
B S
G th e H R
Ne Sw Cz
Value (€m) YoY growth (%)
© IAB Europe 17

18. Section 2 - Online advertising overview by sector
CLASSIFIEDS & DIRECTORIES
Top 10: 2011 YoY Classifieds & Directories growth by country
Slovakia
Poland
Serbia
Hungary
Spain
Croatia
Turkey
Switzerland
Italy
Greece
0 5 10 % 15 20 25 30 35
Rest of Europe: 2011 YoY Classifieds & Directories growth by country
Finland
Sweden
Belgium
Netherlands
UK
Slovenia
Germany
Norway
Austria
France
Denmark
Ireland
Bulgaria
Czech Rep
Romania
-50 -40 -30 -20 -10 0 10
%
18 IAB Europe AdEx Benchmark 2011

19. Section 2 - Online advertising overview by sector
PAID-FOR-SEARCH
Paid-for-search reclaims status as fastest- YoY growth in European Search 2007-2011
growing segment
45
39.0%
• Value: €9.72bn 40 36.0%
35
• Accounts for 46.5% of all online advertising spend
30
• YoY growth of 17.9%
%
25
17.9%
20 16.1%
• Top five countries by value: UK, Germany, France, Russia,
15
and Netherlands
10
10.8%
• Top five countries by growth: Romania, Slovenia, Russia, 5
Croatia, and Poland 0
2007 2008 2009 2010 2011
In 2011, paid-for-search reclaimed its status as fastest growing segment of online advertising after display growth outperformed search in
2010. It was the sole online format which experienced growth acceleration at 17.9% in 2011, up from 16.1% in 2010. Amounting to €9.72
billion, paid-for-search accounted for 46.5% of total online advertising in 2011 and remains the biggest part of online advertising spend.
Paid-for-search has seen robust growth in many emerging markets with nine countries experiencing growth above 30% year-on-year. Ro-
mania, Slovenia, and Russia increased the size of their search market by over half of its value in 2010 at 69.9%, 66.7%, and 62.6% growth.
This is because CEE markets, with the exception of Russia, are generally display-driven and had been lagging behind in development for
the paid-for-search format.
Paid-for-search growth is still strong in mature markets with all but one country experiencing double-digit growth. This confirms the success
of the format’s return-on-investment propositions. It is also indicative of innovation in search. Paid-for-search has expanded into video and
location-based services and is also used in cross-media campaigns.
Top 10 : Search value by country 2011 and 2010 (€m)
UK €3,187m
Germany €1,868m
France €913m
Russia 2011
€681m
Netherlands €530m 2010
Spain €460m
Italy €448m
Sweden €233m
Denmark €223m
Poland €159m
500 1,000 1,500 2,000 2,500 3,000 3,500
© IAB Europe 19

20. Section 2 - Online advertising overview by sector
PAID-FOR-SEARCH
Rest of Europe: Search value by country 2011 and 2010 (€m)
Turkey €152m
Belgium €140m
Switzerland
€129m
Austria €122m
Norway €118m
Czech Rep €102m
Finland €72m
Greece €60 2011
Ireland €54 2010
Hungary €35
Slovakia €13
Bulgaria €11
Croatia €7
Slovenia €5
Serbia €2
Romania €1
20 40 60 80 100 120 140 160
Search Value and growth 2011
80%
3,500
70%
3,000
60%
2,500
50%
2,000 40%
30%
1,500
20%
1,000
10%
500
0%
0 -10%
y e a s n y n k y a y e y a a a a a a
UK an anc ssi nd pai Ital de ar land rke ium land stri rwa Rep land eec land gar aki gari oati eni rbi ani
m Fr Ru rla S g
we enm Po Tu Bel itzer Au No ech Fin Gr Ire Hun Slov Bul Cr Slov Se om
er e S D
G th R
Ne Sw Cz
Value (€m) YoY growth (%)
20 IAB Europe AdEx Benchmark 2011

21. Section 2 - Online advertising overview by sector
PAID-FOR-SEARCH
Top 10: 2011 YoY search growth by country
Romania
Slovenia
Russia
Croatia
Poland
Serbia
Bulgaria
Hungary
Turkey
Sweden
0 10 20 30 40 50 60 70 80
%
Rest of Europe: 2011 YoY search growth by country
Switzerland
Denmark
Slovakia
Greece
Czech Rep
Italy
UK
Ireland
Netherlands
Belgium
Norway
Austria
Germany
Spain
France
Finland
-5 0 5 10 15 20 25 30
%
© IAB Europe 21

22. Section 2 - Online advertising overview by sector
MOBILE
Mobile still a nascent medium Mobile display as a share of online display in 2011
While mobile advertising is still a nascent medium, it is becom- 6
ing increasingly prominent in campaigns. The IAB Europe AdEx 5
€5.3%
Benchmark 2011 study received mobile display advertising
5.2%
4
ad spend from 14 markets. In 2011, mobile display advertising
%
3
ranged from €0.1 million in Serbia to €69.1 million in the UK, with
3.7%
3.6%
mature markets investing more in mobile display than the CEE 2
3.6%
0.7%
0.7%
0.5%
2.3%
2.2%
2.2%
1.8%
1.7%
1.5%
region. Although these figures are still comparatively small, mo- 1
bile display has been increasing rapidly as a share of total display, 0
e n y y k s n y y a a
reaching values that range from 0.5% in the Czech Republic to UK anc pai Ital rwa ar and de rke gar stri erbi land Rep
m l e Tu un
Fr S
No Den ther Sw H Au S Po ech
5.3% in the UK. Ne Cz
A small number of markets also supplied data for search and mes-
saging. In the UK mobile search advertising amounted to €154.3
Smartphone penetration in Europe 2005-2016
million. Messaging was reported in Italy at €5.8m and Turkey at
€9.3 million.
80
70
Mobile display advertising growth surged in 2011 as mobile in- 60
creasingly becomes a staple item in media plans. Growing organi- 50
%
cally from a low basis, rising smartphone penetration, increased 40
30
data traffic and proliferation of the advertising ecosystem are key
20
factors behind this development. For instance, in 2011 mobile
10
display advertising grew by 124.0% in the UK and by 178.2% in 0
2011
2014
2015
2016
2005
2006
2007
2008
2009
2010
2013
2012
Sweden.
Source: IHS Screen Digest
This trend is set to continue as the addressable market for mobile
advertising grows over time. As IHS Screen Digest data suggests,
smartphone penetration in Europe reached 31.0% in 2011 and is
Looking at our ad network from the global perspective,
expected to grow to 77% by 2016.
it’s clear that Android and iOS are by an immense dis-
tance the two dominant platforms. Between them they
Mobile display ad spend in 2011 (€m)
account for 83% of all mobile ad activity worldwide, with
80
70 45% accounted for by iOS. The IAB’s data for mobile
€69.1m
60 advertising spend is very consistent with our regional
€33.0m
50 reach figures, showing that, when we compare value and
€m
40
€19.9m
spend with sufficiently large sample sizes, correlations
€14.9m
30
€10.4m
emerge that enable us to draw meaningful insights.
€7.0m
€5.3m
€4.3m
€3.0m
€1.6m
20
€1.4m
€0.9m
€0.7m
€0.1m
10
Paul Childs, CMO, Adfonic
0 e y s y n k y a y a
UK anc Ital pain and rwa de ar rke stri land gar Rep erbi
Fr S erl No we enm Tu Au Po un ch S
th S D H ze
Ne C
22 IAB Europe AdEx Benchmark 2011