Mobile and Social now dominate digital advertising

Boosted by social networks, mobile becomes the first digital advertising medium in France, according to the latest Observatory e-pub ...

SRI, UDECAM and PwC have just published the results of the 20th edition of the Observatory of the e-pub.

This benchmark study presents the key figures of the digital advertising market and its ecosystem by analyzing the evolution of its net sales by levers, by formats, by modes of purchase and by devices [1].

A market that is still very dynamic
The global e-pub market represents € 2,264 million in the first half of 2018, up 15.5% compared to the first half of 2017

Digital confirms its leading position in the media mix (39.2%), up 4.7 points (vs. S1 2017)

All digital levers are growing:

Search: + 8.5%, representing 47% of the overall market and a net turnover of € 1,078 million
Display: + 29.9%, representing 37% of the overall market and a net turnover of € 875 million
Other levers [2]: + 6%, representing 16% of the overall market and net sales of € 366m

While the uses are definitely installed, since 76% of site visits are now mobile [3], the advertising (Search + Display) is now 51% (€ 1,925 M) and still up +43 %.

A Display boosted by the Social
The "Non-Social" Display rose by 6% (€ 408m), but it was the "Social" Display [4] that drove the growth of the Display (+ 61.8%) and the market (€ 467m)

All formats are progressing:

The "Classic" Display (including native formats) [5] still represents 50% of the total Display, up + 23.3% (€ 440m)
The Display "Video" continues its strong momentum with + 45.2% (360 M €). It represents 41% of the total Display
From year to year, Special Operations are growing steadily and represent 8% of the total Display, up + 10.9% (€ 71m)
Digital Audio[6], measured for the first time, represents only 0.5% but it is up + 9.7% (4.8 M €).

The video represents 41% of the Display
IPTV saw a 10% growth in its business, while Mobile became the leading video broadcasting device and accounted for 49%, up 78% in the first half of 2018.

Programmatic progress continues
Programmatic [7] continues to grow (+ 50%), and now represents 2/3 of the display (66%).

"Excluding social networks", investments continue their transfer to programmatic, for a share of 46% of purchases, up + 25.3%.

Programmatically by nature, it is the Social Networks that generate most of this growth (+ 61.8%), or 73% of investments in this mode of marketing.

The Mobile is driving the growth of the Display where it exceeds the desktop
Mobile is now the master support and represents 51% of Display investments (444M €), with an increase of + 60%.
From now on, Social Networks account for 83% of mobile investments, up + 73.4% (€ 371m).

Search and Social Networks, in acceleration
In the first half of 2018, Search and Social Networks accounted for 79% of the Display and Search market combined (vs. 77% H1 2017). These two levers experienced significant growth of + 20.5%.
Search and Social Networks contribute 92% to the growth of the market.

For Jean-Baptiste Rouet, President of the Digital Commission of UDECAM:

"I keep in mind that the major distribution and trading platforms capture 80% of the value and growth of advertisers' budgets but only represent 20% of the available advertising inventory.

Thus, consumers who plebiscite these giants of the net consume primarily content. If we want to continue to consume these contents, it is necessary to work on a better distribution of the value ... ".

Sébastien Leroyer, PwC's Experience Center Director, concludes:

"Digital accounts for more than 39% of the advertising market in France. But what is especially striking is that this leadership is accentuated since the growth of the market accelerates from year to year, to reach this semester 15,5%, a growth never observed since we realize the Observatory.

Moreover, with half of these investments made on the mobile, this market mutates deeply and accompanies the new reality of the uses ".

[1] PwC has been creating the e-pub Observatory since 2013. This study covers the entire French digital advertising market, including the major US players, and crosses multiple sources: declarations and qualitative interviews with the public and private sector. media agencies, analyzes of various international financial publications and estimates.

[2] Other levers: Affiliation, Comparators and Emailing.

[3] Médiamétrie // NetRatings - Global Internet Audience - France - May 2018 - Base: 2 years and over.

[4] Programmatic: set of websites and mobiles allowing their users to build a network of knowledge via tools and interfaces of interaction, presentation and communication. As part of the study, YouTube is not considered a social network. Our definition excludes "owned media" and "earned media".

[5] The "Classic Display" includes banner formats, IAB standard formats and native formats including recommendation platforms and "Display Social", excluding Video - all commercialization / all devices

[6] Audio Digital includes web radio, voice assistants, podcasts (download or streaming) - all commercializations / devices

[7] Inventories sold via automatic linking between buyers and sellers. Included are all automated sales models: Guaranteed / Unsecured, Fixed Price / RTB, Private Market Places / Open Auctions, Self-Served Platform / Trading Desk. Social Networks are also considered programmatic sales.

[8] Source PwC - July 2018

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