Online Adspends 2017

Advertisers Spent CZK 23 billion on Internet Advertising Last Year

In 2017 the volume of internet advertising exceeded CZK 23 billion. Compared to 2016, this represents growth of 18 per cent caused, in absolute figures, primarily by display and search advertising. The highest relative growth was achieved by search advertising (+ 26 per cent), while classified and directories increased by 17 per cent and display advertising by 16 per cent. From the viewpoint of the manner of advertising space purchase the programmatic purchase of display advertising increased by 20 per cent, 68 per cent out of which was RTB. Expectations for the coming year are also optimistic; the survey participants assume that online advertising will continue to grow by 13 per cent up to CZK 26, 4 billion in 2018. Out of the total advertising expenditures, online advertising accounts for a 22,5 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 2017 advertisers used online advertising in the volume of CZK 23,3 billion. This is by 18 per cent more than in the previous year and confirms the ongoing growing trend in the use of online forms of advertising). This year’s growth is expected to reach 13 per cent, i.e. CZK 26,4 billion spent on internet advertising.

The Development of Total Expenditures in Internet Advertising

The Development of Total Expenditures in Internet Advertising Source: SPIR, MEDIAN, ppm factum, February 2018
* estimation; excluding SMS, MMS
– to 2015 mix of ratecard and net prices
– from 2016 ratecard prices

Share of Individual Advertising Forms in 2017

The largest part of advertising expenditures is attributable to display advertising (CZK 16,4, billion in ratecard prices). 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 5,9 billion in real prices. The sales in respect of classifieds and directories were declared in the amount of CZK 1,1 billion in ratecard prices. With respect to SMS and MMS campaigns, which are not being included in internet advertising, the advertisers spent CZK 104 million in ratecard prices.

Market share of Individual Internet Advertising Forms in 2017

Share of Individual Advertising Forms in 2017 Source: SPIR, MEDIAN, February 2018
* net prices
others in ratecard prices

Video advertising represented a 22 per cent share of the overall display advertising (CZK 3,56 billion), i.e. a 30 per cent year-to-year increase, and is expected to grow by 16 per cent in 2018. Native advertising had almost a 2 per cent share (CZK 315 million), increased four times (293 per cent), if compared to the last year, and is expected to grow by 24 per cent in 2018.

Format share of Display in 2017

Format share of Display in 2016 Source: SPIR, MEDIAN, February 2018
– ratecard prices

The share of mobile advertising out of the overall display advertising was 17 per cent (CZK 2,87 billion), i.e. a 64 per cent year-to-year increase, and is expected to grow by 19 per cent in 2018. 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 2017

Mobile share of Display in 2016 Source: SPIR, MEDIAN, February 2018
– ratecard prices

Programmatic forms of advertising, which is related to content networks and RTB, together represented a 49 per cent share (CZK 8,08 billion in ratecard prices) and increased by 20 per cent, if compared to the last year. Content network reached a 43 per cent share (CZK 7,06 billion in ratecard prices + 15 per cent increase), while RTB represented a 6 per cent share (CZK 1,02 billion in ratecard prices + 68 per cent increase). The survey indicates division of RTB programmatic advertising into open deal (CZK 703 million) and private deal (CZK 316 million) advertising.

Programmatic share of Display in 2016

Programmatic share of Display in 2016 Source: SPIR, MEDIAN, February 2018
- ratecard prices

With respect to programmatic advertising, which in 2017 reached the volume CZK 7,02 billion in real price, the highest share (87 per cent) was represented by content networks (CZK 6,14 billion in real prices). RTB share was 13 per cent with the total volume of CZK 886 million in real prices.

Programmatic Display in 2016

Programmatic Display in 2016 Source: SPIR, MEDIAN, February 2018
- net prices

Development of Individual Forms of Internet and Mobile Advertising

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.

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

Performance of Individual Forms of Internet and Mobile Advertising from 2008 and 2017* in CZK millions Source: SPIR, MEDIAN, ppm factum, February 2018
* 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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* (estimation)
Display ** 4 475 693 5 137 305 6 148 289 7 378 185 9 204 844 9 967 379 10 481 447 14 164 675 16 400 893 18 725 775
Paid for search *** 1 141 194 1 593 704 1 871 320 2 871 428 2 901 804 3 360 886 3 656 319 4 663 124 5 857 274 6 536 718
Classifieds
& Directories		 786 111 985 445 919 806 901 784 1 200 788 1 256 196 906 356 899 652 1 052 715 1 123 463
SMS/MMS 114 027 99 537 93 264 107 870 135 947 113 935 104 150 110 399
TOTAL
(SMS/MMS excl.)		 6 402 998 7 716 454 8 900 469 11 151 399 13 307 435 14 584 460 15 044 122 19 727 451 23 310 883 26 385 956
* estimate
** ratecard and real prices mix until 2015, ratecard prices since 2016
*** real prices (net net)
- the rest in ratecard prices (gross)

Year-to-Year Changes of Individual Forms of Internet and Mobile Advertising in 2017 and Estimate for 2018

Display advertising increased by 16 per cent in 2017 and this year media, agencies and direct advertisers estimate further 14 per cent growth. Search advertising increased by 26 per cent in 2017 and this year it is expected to grow by 12 per cent. Classifieds and directories recorded growth of 17 per cent in 2017 and this year the increase is estimated to 7 per cent. The overall growth of internet advertising was 18 per cent in 2017, while the estimated increase for 2018 is 13 per cent.

Year-to-Year Growth of Individual Forms of Internet and Mobile Advertising in 2017 and 2018*

Year-to-Year Growth of Individual Forms of Internet and Mobile Advertising in 2017 (estimation) Source: SPIR, MEDIAN, ppm factum, February 2018
* estimation

Share of Individual Mediatypes in 2017

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 48,1 billion maintains its dominant position in the advertising market (46,4 per cent). Online advertising has a 22,5 per cent share (CZK 23,3 billion). Press advertising reached CZK 19,3 billion and has an 18,6 per cent share in advertisement budgets. Radio advertising reached the level of CZK 7,6 billion (7,3 per cent) and OOH advertising generated CZK 5,3 billion (5,1 per cent) last year.
The prices do not include self-promotion.

Individual Mediatype Share in 2017

Individual Mediatype Share in 2016 Source: SPIR, MEDIAN, Nielsen Admosphere, February 2018
- ratecard prices

Development 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. Other mediatypes show insignificant growth or stagnation in absolute values.

Share Development by Individual Mediatypes

Share Development by Individual Mediatypes Source: SPIR, MEDIAN, ppm factum, Nielsen Admosphere, Kantar Media, February 2018
** 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 2018
** 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 2009 2010 2011 2012 2013 2014 2015 2016 2017
TV 28 369 155 25 587 562 29 162 723 30 118 949 27 802 137 31 179 208 35 494 680 42 377 364 48 077 041
Internet 6 402 998 7 716 454 8 900 469 11 151 399 13 307 435 14 584 460 15 044 122 19 727 451 23 310 883
Press 17 911 403 21 553 641 19 500 741 17 654 511 18 039 126 17 899 192 17 886 632 19 043 319 19 287 741
Radio 3 932 158 1 284 310 1 122 994 1 068 142 5 844 355 6 062 785 6 384 325 7 047 618 7 551 820
OOH 3 547 993 3 285 289 3 676 360 4 001 669 4 528 262 4 816 865 4 888 990 5 208 905 5 299 761
TOTAL 60 163 707 59 427 256 62 363 287 63 994 670 69 521 315 74 542 510 79 698 749 93 404 657 103 527 245 CZK
*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 (%)

relative 2009 2010 2011 2012 2013 2014 2015 2016 2017
TV 47,2 % 43,1 % 46,8 % 47,1 % 40,0 % 41,8 % 44,5 % 45,4 % 46,4 %
Internet 10,6 % 13,0 % 14,3 % 17,4 % 19,1 % 19,6 % 18,9 % 21,1 % 22,5 %
Press 29,8 % 36,3 % 31,3 % 27,6 % 25,9 % 24,0 % 22,4 % 20,4 % 18,6 %
Radio 6,5 % 2,2 % 1,8 % 1,7 % 8,4 % 8,1 % 8,0 % 7,5 % 7,3 %
OOH 5,9 % 5,5 % 5,9 % 6,3 % 6,5 % 6,5 % 6,1 % 5,6 % 5,1 %
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 2018 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 2017
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