1. IAB report on online ad-spend
Affiliates results 2011

2. IAB Online Ad Spend Study
1 IAB report on online ad-spend © 2012 Deloitte The Netherlands

3. 2011 Results

4. Online Advertising Market
3 IAB report on online ad-spend © 2012 Deloitte The Netherlands

5. Total spend on affiliate marketing in The Netherlands is €117m
Spend on affiliate marketing (€m) Affiliate revenue by publisher model
Social Media
3%
3% Advertising networks
7% Coupon codes
8% Search (SEO/SEA)
13% Comparison sites
117 20% Cashback and loyalty
46% Topic publishers
Publisher model
Note: Division of revenue by publisher model based on data from an estimated 59% (€68.6m) of the total market
Source: Jochem Vroom Affiliateblog/Imbull BV; Survey respondents; Deloitte analysis
4 IAB report on online ad-spend © 2012 Deloitte The Netherlands

6. More than half of affiliates’ display advertising revenues come from
traditional embedded formats
Display advertising breakdown by format*
44% Textlinks (incl. AdSense)
56% Embedded formats
Display formats
*n=7 representing €68.6m
Note: Embedded formats are for example traditional banners and skyscrapers
Source: Survey respondents, Deloitte analysis
5 IAB report on online ad-spend © 2012 Deloitte The Netherlands

7. For affiliate marketing CPS model is the default revenue model
Affiliate advertising revenue per payment model**
Fixed Fee CPC
Other
2%
3%
CPL 2%
15%
78%
CPS
*n=4 representing €39.7m
**n=6 representing €62.6m
Note: In-app only includes revenues from survey respondents and excludes revenues from players such as Google and Apple
Source: Survey respondents, Emerce.nl, Deloitte analysis
6 IAB report on online ad-spend © 2012 Deloitte The Netherlands

8. Display revenue per medium (website, mobile, e-mail)
7 IAB report on online ad-spend © 2012 Deloitte The Netherlands

9. Online retail and Financial services advertisers dominate affiliates’ revenue
share, Consumer goods and automotive advertisers are underrepresented
Industries by revenue share affiliates* Industries by revenue share all respondents
2011 2011
Online retail 27% Online retail 9%
Financial services 26% Financial services 14%
Telecom 18% Telecom 10%
Travel 13% Travel 7%
Fashion 6% Fashion 2%
Energy 3% Energy 1%
Consumer goods 1% Consumer goods 17%
Hardware & Hardware &
1% 4%
electronics electronics
Free time 0% Free time 2%
Personal care 0% Personal care 3%
Automotive 0% Automotive 7%
Public sector 0% Public sector 3%
ICT Services 0% ICT Services 2%
Retail 0% Retail 2%
*n=4 representing €40.3m
** includes free time, personal care, automotive, public sector, ICT services, retail
Note: Excluding classifieds, directories & listings, search and industry category other; All respondents includes affiliates and publishers
Source: Survey respondents, Deloitte analysis
8 IAB report on online ad-spend © 2012 Deloitte The Netherlands

10. Outlook

11. The Dutch economy is expected to experience slow growth over the next
two years
Dutch GDP projections (€b) Comments
650 6%
• The economy seems to keep an easy pace as the
625 Dutch GDP is expected to grow at a steady 1.4%
1.4% 3% for the coming two years
600
• Following the sharp recovery in 2010 in the
576 advertising market, future growth is expected to be
575 567 0%
560 more in line with GDP
551
550 542
-3%
525
-6%
500
475 -9%
450
-12%
425
400 -15%
2009 2010 2011 2012F 2013F
GDP
GDP Growth rate YoY
Total advertising growth rate YoY
Note: Real GDP based on constant prices
Source: IMF, Deloitte analysis
10 IAB report on online ad-spend © 2012 Deloitte The Netherlands

12. TV and online are expected to grow the most in both absolute and relative
terms
Estimated advertising market (€m) Comments
5,000
1.8%
4,095 5 4,169 6 • Expected growth for the total advertising market in
4,028 5
4,000 3,827 5 158 165 The Netherlands in 2012 is 1.8%
150 233 235
230 • The online advertising market is expected to
219 149 452
547 484 become the largest market in 2012
571 • Newspapers and magazines are expected to
3,000
1,091 continue their steady decline
965 1,059
885 • Radio is expected to remain stable through 2012
• Outdoor is expected to grow steadily
2,000
1,088 1,045
1,177
1,184
1,000
1,068 1,175
815 954
0
2009 2010 2011E 2012F
Cinema Radio TV Internet
Outdoor Magazines Newspapers
Source: Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau; Company annual reports, Deloitte analysis
11 IAB report on online ad-spend © 2012 Deloitte The Netherlands

13. As consumers spend more time online, advertisers are expected to respond
similarly to rebalance the value of the difference media types
Time spend vs SoA* (2011)
= Indicative direction and speed
50
45
40 Newspapers
35
30
SoA (%)
Internet TV
25
20
15
Magazine
10
5 Radio
0
0 5 10 15 20 25 30 35 40 45 50
Time spend (%)
* SoA = Share of Advertising
Note: Share of Advertising based on collected 2011 data; Time spend based on most recent available findings from SPOT
Source: Trends tijdsbesteding 2010 SPOT, Zenith optimedia December 2011, SPOT TV Jaarrapport 2011, Radio Advies Bureau, Deloitte analysis
12 IAB report on online ad-spend © 2012 Deloitte The Netherlands

14. Affiliate respondents predict a 14.9% market growth in 2012 weighted by
respondent revenues as compared to 7.7% for the market at large
Affiliate survey respondents Overall survey respondents growth expectations
growth expectations
50%
50% 50%
45% 45%
40% 40%
30% 30%
20%
20% 20% 20% 20%
20% 20% 18%
15% 15%
15% 12%
14.9% 12%
10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 8%
10% 10% 8%
7% 5% 7.7%
5% 5%
4%
2%
0% 0%
Respondents* Respondents
*n=6 representing €60.7M
Note: Growth expectation calculated by weighting responses with company revenue; overall market includes affiliates and publishers
Source: Survey respondents; Deloitte analysis
13 IAB report on online ad-spend © 2012 Deloitte The Netherlands

15. Appendix

16. Methodology
Online advertising market
• 8 affiliate companies reported their data based on the
questionnaire
• The data gathered comprises 59% of the total market by
revenue
• The figures are drawn up on the basis of site declaration
and have not been verified
15 IAB report on online ad-spend © 2012 Deloitte The Netherlands

17. Definitions
Categories Payment models
• Display • Fixed Fee: Payment model based on a fixed fee
- Embedded formats (banners, buttons, skyscrapers • CPM: Cost per Mille = Payment model where the
etc) advertiser pays per thousand viewers
- Interruptive formats (rich media, over the page, • CPC: Cost per Click = Payment model based on the
page take-over etc) number of clicks on an advertisement
- Tekstlinks (incl. AdSense) • CPL: Cost per Lead = Payment model that is based on
the number of leads generated. A lead is an online
- Video (pre-/mid-/ postroll)
conversion where the consumer shares its contact details
- Other uncategorized display advertising and indicates to be interested
• Online classifieds, directories & listings • CPS: Cost per Sale = Payment model based on the
- B2B number of sales generated
- B2C
- C2C
16 IAB report on online ad-spend © 2012 Deloitte The Netherlands

18. Contact
For questions concerning this research feel free to contact:
Roel van Rijsewijk Roel van Rijsewijk is a Director with the Risk Services practice from Deloitte with more than
Deloitte Online Business Innovation 10 years of experience in risk consulting for companies in the Technology, Media &
Telecommunications (TMT) industry. Roel leads one of Deloitte’s main innovation projects on
• Tel: +31 (0)6 52615087 ethics and trust in a digital world and is co-founder of Deloitte’s Online Business Innovation
• Email: rvanrijsewijk@deloitte.nl group
Gagandeep Sethi
Deloitte Consulting | Strategy Gagandeep Sethi is a Manager in the Corporate Strategy practice of Deloitte Consulting
Netherlands with more than 10 years of experience within the Technology, Media &
• Tel: +31 (0)6 13127167 Telecommunications (TMT) industry.
• Email: gasethi@deloitte.nl
Internet Advertising Bureau
IAB Nederland Dutch IAB research includes the IAB / Deloitte Ad Spend Study, all IAB commissioned
research and assisting IAB members with their research projects. Also responsible for
• Tel: +31 (0)20 531 51 19 shaping the IAB knowledge base so that it meets members' needs moving forward
• Email: Lauren@iab.nl
17 IAB report on online ad-spend © 2012 Deloitte The Netherlands

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18 IAB report on online ad-spend - DRAFT © 2012 Deloitte The Netherlands