Internet Advertising exceeded CZK 13 Billion Last Year, Doubling Over the Last Five Years
As in previous years, Internet advertising recorded double-digit growth in 2013. According to SPIR estimates, last year’s advertising expenditures in various forms of online promotion reached CZK 13.3 billion and the expectation for this year is another 15 % growth. The increase in investments is reflected in all areas of Internet advertising. The largest volume is accounted for by display banner advertisements, and advertisers also amply use Paid Search advertising, content networks, classifieds and directories. Video advertising on the Internet is increasingly popular among advertisers, and sales of advertising in RTB automatic purchase systems recorded rapid growth. Of total advertising expenditures, online advertising accounts for a 19 % share of the advertising budgets in the Czech Republic. The data come from the annual survey of Internet advertising performance conducted for SPIR in January and February by the Ppm Factum Research agency.
Internet advertising expenditures reached CZK 13,31 billion in 2013. This is more than double the figure (CZK 6.4 billion) for 2009 and 2.2 billion more than in 2012. The average year to year growth was 20 % during the last 4 years which proves the position of Internet as the most dynamic advertising medium. * estimation
Source: SPIR, ppm factum, February 2014
The largest part of advertising expenditures is attributable to display advertising, which includes all banner formats (CZK 6.8 billion at ratecard prices). In real prices, search advertising reached CZK 2.9 billion and in content networks reached CZK 1.4 billion. More than a billion crowns (CZK 1.2 billion) was collected on classifieds and directories advertisements. Although smaller in absolute amounts, video advertising (CZK 689 million), paid PR articles (CZK 178 million), and purchases of advertising targeted at an audience at RTB auctions (CZK 45 million) are rapidly growing forms of advertising on the Internet. “If we were asked to identify a trend, then in addition to a general increase in the turnover in ratecard prices we could certainly talk about the growing diversity of business models and formats of advertising space and related investment diversification,” commented Chief Executive of SPIR Ján Simkanič on the survey results. * net prices, other in ratecard prices
Source: SPIR, ppm factum, February 2014
Graph No. 3 shows the development of the various forms of online advertising in the previous four years and expectations for this year. Along with these, the research also includes advertising in SMS and MMS messages in operator networks, which last year reached CZK 93 million.
* estimation
** net prices, other in ratecard prices
Source: SPIR, ppm factum, February 2014
Of all the observed forms of advertising, the volume of advertising sold by the RTB recorded the highest growth, with a more than five-fold increase. Among other rapidly developing formats are paid PR articles, with a two-fold increase compared to 2012, and video advertising, which paid out one third more compared to a year ago.
* estimation
positive values % indicate growth
Source: SPIR, ppm factum, February 2014
Looking at the comparison of advertising expenditures in various media types, the largest portion (40.5 %) is spent on television,despite an outflow of more than CZK 2 billion from its advertising budgets as compared to 2012. The second most important medium from the point of view of advertisers is print, with a one-quarter share (CZK 17.5 billion). Internet advertising accounts for CZK 13.3 billion, with a 19.4 % share. Radio earned a 8.5 % share (CZK 5.8 billion) and Out -of -Home advertising 6.2 % (CZK 4.3 billion). * prices excl. self-promotion campaigns
Source: SPIR, ppm factum, Admosphere, February 2014
The trend of the development of advertising expenditures on the media (Graph No. 5) shows that while television advertising is still at the top of the interest of advertising contracting entities, print advertising is falling for the fourth year in a row, as opposed to online advertising, which continues to grow. If the current 15-20 % annual growth in Internet advertising spending is maintained, it can be assumed that the volume of online advertising will match or surpass print in two years, i.e. in 2015.
* prices excl. self-promotion campaigns
Radio adspend does not include regional advertising between 2010 - 2012
Source: SPIR, ppm factum, Admosphere, Kantar Media, February 2014
While surveying and processing the results, in the interest of objectivity and the protection of sensitive data, the Ppm Factum agency was commissioned. The survey was conducted during January and February 2014, so that it was based on current closings of individual subjects. The performance of all types of advertising was based on declared performance of individual providers of content, agencies, and operators of advertising networks and mobile operators.
For more information about the terminology used and a description of the methodology.
Press Release - Online Adspends 2013
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