Online Adspends 2016

Advertisers Spent almost CZK 20 billion on Internet Advertising Last Year

The volume of internet advertising reached almost CZK 20 billion last year. Compared to 2015, this represents significant growth that was caused primarily by increased advertising expenditures in search advertising, content networks and RTB. Expectations for the coming year are also optimistic, the survey participants assume that online advertising will continue to grow by 14 per cent up to CZK 22,4 billion. Out of the total advertising expenditures, online advertising accounts for a 21 per cent share. The data come from the annual survey of Internet advertising performance conducted for SPIR by MEDIAN.

Development of Total Expenditures in Internet Advertising in the Period of 2008-2016 and 2017*, in billion CZK

In 2016 advertisers used online advertising in the volume of CZK 19,7 billion. This is by 31 per cent more than in the previous year and confirms the ongoing growing trend in the use of online forms of advertising. The increase has been caused partly by a methodology change with respect to calculation of real prices to ratecard prices (for more details see Methodology). This year’s growth is expected to reach 14 per cent, i.e. CZK 22,4 billion spent on internet advertising.

The Development of Total Expenditures in Internet Advertising Source: SPIR, MEDIAN, ppm factum, February 2017
* estimation; excluding SMS, MMS
– to 2015 mix of ratecard and net prices
– from 2016 ratecard prices

Share of Individual Advertising Forms in 2016

The largest part of advertising expenditures is attributable to display advertising (CZK 14,2 billion). This year a new output structure has been used; as opposed to last years, the display advertising includes also advertising in content networks (in particular Seznam Sklik, Google AdWords and Facebook), RTB and native advertising. The second most frequently used advertising form is paid search with expenditures of CZK 4,7 billion in real prices. The sales in respect of classifieds and directories were declared in the amount of CZK 900 million in ratecard prices. With respect to SMS and MMS campaigns, which are not being included in internet advertising, the advertisers spent CZK 114 million in ratecard prices.

Market share of Individual Internet Advertising Forms in 2016

Podíl jednotlivých forem internetové reklamy Source: SPIR, MEDIAN, February 2017
* net prices
others in ratecard prices

This year, for the first time, the video advertising performance can be determined more precisely. Video advertising represented a 19 per cent share of the overall display advertising (CZK 2,75 billion), while native advertising had almost a 1 per cent share (CZK 80 million).

Format share of Display in 2016

Format share of Display in 2016 Source: SPIR, MEDIAN, February 2017
– ratecard prices

This year the share of mobile advertising could be determined not only with respect to standard display, as declared by media, but also in relation to content networks and RTB. The share of mobile advertising out of the overall display advertising was 12 per cent (CZK 1,75 billion). The survey’s objective was to determine the share of advertisements that were displayed on mobile devices, not only sold as mobile ads. Unfortunately, many declaring parties are not able to specify the share of real display on mobile devices and provide only the sales data. Thus we might assume that the real share of advertisements displayed on mobile devices would be even higher.

Mobile share of Display in 2016

Mobile share of Display in 2016 Source: SPIR, MEDIAN, February 2017
– ratecard prices

Display advertising for the first time includes also programmatic forms of advertising - content networks and RTB, which together represented a 47 per cent share (CZK 6,72 billion in real prices). Content network reached a 43 per cent share (CZK 6,11 billion in ratecard prices), while RTB represented a 4 per cent share (CZK 605 million in ratecard prices). The survey indicates division of RTB programmatic advertising into open deal (CZK 424 million) and private deal (CZK 181 million) advertising.

Programmatic share of Display in 2016

Programmatic share of Display in 2016 Source: SPIR, MEDIAN, February 2017
- ratecard prices

With respect to programmatic advertising, which in 2016 reached the volume CZK 5,84 billion in real prices, the highest share (91 per cent) was represented by content networks (CZK 5,31 billion in real prices). RTB share was 9 per cent with the total volume of CZK 526 million in real prices.

Programmatic Display in 2016

Programmatic Display in 2016 Source: SPIR, MEDIAN, February 2017
- net prices

Development of Individual Forms of Internet and Mobile Advertising in the Period of 2008-2016 and 2017*

This year the structure of results differs and therefore the figures covering past years had to be adjusted to a comparable structure in order to follow development of individual forms within a longer timeline. The long-term growth is clearly visible in the case of display and search advertising. As far as the display advertising is concerned, the growth is caused primarily by programmatic forms – content networks and RTB – that were also calculated from real to ratecard prices in the amount of + 15 per cent (for more details see Methodology).

Performance of Individual Forms of Internet and Mobile Advertising from 2008 and 2017* in CZK millions Source: SPIR, MEDIAN, ppm factum, February 2017
* estimation
**to 2015 mix of ratecard and net price; from 2016 ratecard prices
***net prices
- Others in ratecard prices

Performance of Individual Forms of Interent and Mobile Advertising in CZK thousands

in thousands of CZK 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Display ** 3 269 467 4 475 693 5 137 305 6 148 289 7 378 185 9 204 844 9 967 379 10 481 447 14 164 675 15 911 152
Paid for search *** 1 026 786 1 141 194 1 593 704 1 871 320 2 871 428 2 901 804 3 360 886 3 656 319 4 663 124 5 579 895
Classifieds
& Directories		 748 027 786 111 985 445 919 806 901 784 1 200 788 1 256 196 906 356 899 652 926 736
SMS/MMS 114 027 99 537 93 264 107 870 135 947 113 935 120 771
TOTAL **
(SMS/MMS excl.)		 5 044 280 6 402 998 7 716 454 8 900 469 11 151 399 13 307 435 14 584 460 15 044 122 19 727 451 22 417 783
* estimate
** ratecard and real prices mix until 2015, ratecard prices since 2016
*** real prices (net net)
- the rest in ratecard prices (gross)

Estimate of Year-to-Year Changes of Individual Forms of Internet and Mobile Advertising in 2017

This year media, agencies and direct advertisers estimate 12 per cent growth of display and 20 per cent growth of search advertising. Classifieds and directories stand still and no major changes are expected. The overall growth of internet advertising is expected to be 14 per cent.

Year-to-Year Growth of Individual Forms of Internet and Mobile Advertising in 2017 (estimation) Source: SPIR, MEDIAN, ppm factum, February 2017

Share of Individual Mediatypes in 2016

For the purpose of comparing the volume of advertising in individual media types, data derived from the Nielsen Admosphere monitoring of advertising expenditures were used. TV advertising with CZK 42,4 billion maintains its dominant position in the advertising market (45 per cent). Online advertising has a 21 per cent share (CZK 19,7 billion). Press advertising reached CZK 19 billion and has a 20 per cent share in advertisement budgets. Radio advertising reached the level of CZK 7 billion (8 per cent) and OOH advertising generated CZK 5,2 billion (6 per cent) last year.
The prices do not include self-promotion.

Individual Mediatype Share in 2016 Source: SPIR, MEDIAN, Nielsen Admosphere, February 2017
- ratecard prices

Performance of Individual Mediatypes

Since 2008, when the SPIR online advertising performance survey started, we note a long-term growing trend of expenditures in internet advertising. During the past four years expenditures in TV advertising have also increased. Both the press and OOH advertising stagnate.

Share Development by Individual Mediatypes

Share Development by Individual Mediatypes Source: SPIR, MEDIAN, ppm factum, Nielsen Admosphere, Kantar Media, February 2017
** prices excl. self-promotion campaigns; TV, Press, OOH and Radio in ratecard prices; Internet: to 2015 mix of ratecard and net prices, from 2016 ratecard prices
Radio in 2010 - 2012 without regional sales

Share Development by Individual Mediatype

Share Development by Individual Mediatypes Source: SPIR, MEDIAN, ppm factum, Nielsen Admosphere, Kantar Media, February 2017
** prices excl. self-promotion campaigns; TV, Press, OOH and Radio in ratecard prices; Internet: to 2015 mix of ratecard and net prices, from 2016 ratecard prices
Radio in 2010 - 2012 without regional sales

Share Development by Individual Mediatypes

absolute, in thousands of CZK 2008 2009 2010 2011 2012 2013 2014 2015 2016
TV 26 687 270 28 369 155 25 587 562 29 162 723 30 118 949 27 802 137 31 179 208 35 494 680 42 377 364
Internet 50 44 280 64 02 998 77 16 454 89 00 469 11 151 399 13 307 435 14 584 460 15 044 122 19 727 451
Press 19 955 363 17 911 403 21 553 641 19 500 741 17 654 511 18 039 126 17 899 192 17 886 632 19 043 319
Radio 3 313 459 3 932 158 1 284 310 1 122 994 1 068 142 5 844 355 6 062 785 6 384 325 7 047 618
OOH 3 842 828 3 547 993 3 285 289 3 676 360 4 001 669 4 528 262 4 816 865 4 888 990 5 208 905
TOTAL 58 843 200 60 163 707 59 427 256 62 363 287 63 994 670 69 521 315 74 542 510 79 698 749 93 404 657
*prices excl. self-promotion campaigns; TV, Press, OOH and Radio in ratecard prices; Internet: to 2015 mix of ratecard and net prices, from 2016 ratecard prices
Radio in 2010 - 2012 without regional sales

Podíly inzertních výkonů mediatypů v %

relative 2008 2009 2010 2011 2012 2013 2014 2015 2016
TV 45,4 % 47,2 % 43,1 % 46,8 % 47,1 % 40,0 % 41,8 % 44,5 % 45,4 %
Internet 8,6 % 10,6 % 13,0 % 14,3 % 17,4 % 19,1 % 19,6 % 18,9 % 21,1 %
Press 33,9 % 29,8 % 36,3 % 31,3 % 27,6 % 25,9 % 24,0 % 22,4 % 20,4 %
Radio 5,6 % 6,5 % 2,2 % 1,8 % 1,7 % 8,4 % 8,1 % 8,0 % 7,5 %
OOH 6,5 % 5,9 % 5,5 % 5,9 % 6,3 % 6,5 % 6,5 % 6,1 % 5,6 %
TOTAL 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %

For the purpose of surveying and processing the results, in the interest of objectivity and the protection of sensitive data, the Median agency was commissioned. The survey was conducted during January and February 2017 and 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 2016
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Online Adspends 2016 - PDF