The Hungarian Digital Ad Spend Study for 2016

1. Hungarian Digital Ad Spend Study

2. 1
IAB Adex
Digital Ad Spend Study

3. IAB Adex
 IAB (Interactive Advertising Bureau) Adex digital ad spend
reports are the industry benchmark numbers worldwide
 IAB US publishes its Adex study since 1996
 IAB Europe started to publish its Pan-European Adex study in
2006, IAB Hungary joined in 2008
 Hungarian online ad spend data is available since 2000
(Hungarian Advertising Association’s Internet section), from
2008 digital ad spend data (online+mobile) by IAB Hungary
2

4. 3
IAB Hungary Adex
Hungarian Digital Ad Spend
Study

5. IAB Hungary Adex
 Goal: providing thorough, accurate data about the Hungarian
digital ad spend
 The study analyzes the net* digital ad spend
 IAB Hungary Adex is the industry standard ad spend study,
having the following categories:
4
* This is equivalent to IAB Europe’s “gross” definition
** From 2015 onwards the mobile ad spend is a subsegment while Display and Search include mobile. This change doesn’t affect the total.
● Categories**
● Display
● Search
● Listing
● E-mail
● Subsegments
● Mobile
● Video
● Programmatic

6. IAB Hungary Adex structure
5
* From 2015 onwards the mobile ad spend is a subsegment while Display and Search include mobile. This change doesn’t affect the total.
display search listing email
mobil
video
programmatic
Key categories
Subsegments

7. 6
Partners

8. Partners
7
IAB Hungary cooperated with PwC Hungary who collected
market data, estimations and conducted validation discussions.
Online Section of Hungarian Communication Agencies’
Association (MAKSZ) helped our work with providing
aggregated agency data.

9. 8
Methodology

10. IAB Hungary Adex 2016
methodology
9
 Report is based on data supplied by companies and
estimations by experts
 Display: data collection and estimation (for global players)
 Search: estimation (for global players)
 Listing: estimation
 Email: data collection and estimation
 Subsegments (mobile, video, automated): data collection and estimation (for global players)

11. 10
IAB Hungary Adex 2016

12. Key takeaways
11
 Strong, 22% growth
 Mobile share is 27% within display
(85% of mobile ad spend goes to global players)
 Programmatic spend surpassed 1 billion HUF
 Local media players' market share of digital ad spend
below 50% for the first time

13. 12
2016 Digital ad spend
68,38 billion HUF
+ 22% YoY
Net data

14. 13
Digital ad spend in Hungary
Net data * 2011-2016: net-net digital / net-net total ad spending (without DM)
0,9 1,2 1,6 2,4 4,3
6,9
10,5
15,3
22,3 23,3
27,2
31,1
35,7
41,2
49,5
56,2
68,4
0,8% 1,0% 1,3%1,8% 2,8%
4,1%
5,9%
8,1%
11,0%
14,4%
15,9%
18,8%
23,4%
26,5%
29,4%
32,5%
36,0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
10
20
30
40
50
60
70
80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Digital’sshare*oftotaladspending(%)
billionHUF

15. +22%, +12,2 bln HUF (YoY)
14
0,4 0,4
0,8
1,9
2,6
3,6
4,8
7,0
1,6
3,9
3,5
4,5
5,5
8,3
6,7
12,2
41%
33%
50%
79%
60%
52%
46%
45%
7%
16%
13%
14% 15%
20%
14%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YoY%
billionHUF
Growth of digital advertising
Net data

16. 15
IAB Hungary Adex 2016
Segment Data

17. 16
Net data
Display – search – listing – email
growth in each category except e-mail
18 149
16 121
6 062
824
20 962
19 191
8 035
1 246
23 243
22 262
9 326
1 341
28 967
26 936
11 242
1 239
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Display Search Listing E-mail
millionHUF
2013 2014 2015 2016

18. 17
Display – search – listing – email
segments’ market share is steady
44%
39%
15%
2%
42%
39%
16%
3%
41%
40%
17%
2%
42%
39%
16%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Display Search Listing E-mail
marketshare
2013 2014 2015 2016

19. 18
Display: +25% growth
mobile’s share in display is 27%
13,8 13,8 14,8 15,3
17,3 18,16
21,0
23,2
29,0
30%
0%
7%
3%
13%
5%
15%
10,8%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012 2013 2014 2015 2016
YoY%
billionHUF
15
16,8 16,9
18,6 18,7
21,1
0,3
0,5 1,2
2,3 4,6
7,9
0
5
10
15
20
25
30
2011 2012 2013 2014 2015 2016
billionHUF
desktop mobile
98% 97% 93% 89%
80%
73%
2% 3% 7% 11%
20%
27%
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016
desktop mobile
Net data, rounded values

20. 19
Search: +21% growth
mobile’s share is 33%
3,8
5,2
7,5
9,8
12,8
16,1
19,2
22,3
26,9
192%
37% 44% 31% 30% 26% 19% 16% 21%
0%
50%
100%
150%
200%
250%
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014 2015 2016
YoY%
billionHUF
9,8
12,4
14,3
16,8 17,5 18,1
0,4
0,7
2,4
4,8
8,8
0,0
5,0
10,0
15,0
20,0
25,0
30,0
2011 2012 2013 2014 2015 2016
billionHUF
desktop mobile
100% 97% 95%
88%
79%
67%
3% 5%
12%
21%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016
desktop mobile
Net data, rounded values

21. 20
Net data
Listing: +21% growth
3,5 3,5
4
4,67 4,65
6,06
8,04
9,33
11,24
21%
0%
14%
17%
0%
30%
33%
16%
21%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014 2015 2016
YoY%
billionHUF

22. 1 797
900
545
760 650
2 267
1 007
643
275
1 280
590
3 658
1 080
812
275
1 738
472
4 238
1 327
949
480
1 933
400
4 979
1 638
1 123
700
2 262
541
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
Classifieds / Job Classifieds / Real Estate Classifieds / Auto Classifieds / Other Price comparison Auction
millionHUF
2012 2013 2014 2015 2016
21
Net data
Listing subsegments
+ 17%
+ 23%
+ 18%
+ 46%
+ 17%
+ 35%

23. 22
Net data
E-mail marketing
750
850
900
950
880
824
1 246
1 341
1 239
50%
13%
6% 6%
-7% -6%
51%
8%
-8%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0
200
400
600
800
1000
1200
1400
1600
2008 2009 2010 2011 2012 2013 2014 2015 2016
YoY%
millionHUF

24. 23
IAB Hungary Adex 2016
Subsegments

25. 24
Mobile ad spend
79% growth
Net data
Market share* 1% 3% 6% 12% 21% 30%
* Compared to relevant segment (Display+Search)
260
896
1 943
4 722
9 336
16 707
245%
117%
143%
98%
79%
0%
50%
100%
150%
200%
250%
300%
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
2011 2012 2013 2014 2015 2016
YoY%
millionHUF

26. 25
Mobile
share of display & search
100%
60% 63%
49% 49% 47%
40% 37%
51% 51% 53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016
display search
Net data

27. 26
Video
steady growth
Net data
285
503
1 225
1 956
2 169
76%
144%
60%
11%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016
YoY%
millionHUF

28. 4 388
85 85
6 325
580 513
9 053
1 028 944
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
automated programmatic RTB
millionHUF
2014 2015 2016
27
Automated trading
programmatic: 77% growth and surpassed 1 bln HUF!
Net data Explanation: Google (non-search) and Facebook spend are automated, but not programmatic
RTB
Programmatic
Automated

29. 28
IAB Hungary Adex 2016
Ad spend on Local – Global
media players

30. 29
Local – Global trend
milestone: global share is above 50%
Net data
17% 21%
29% 36% 42% 46% 48% 50% 51%
83% 79%
71% 64% 58% 54% 52% 50% 49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
marketshare(%)
global local
3,7 4,9
8
11,3
14,8
19
23,9
28
34,9
18,6 18,9 19,7 19,9 20,8
22,2
25,6
28,2
33,5
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
2008 2009 2010 2011 2012 2013 2014 2015 2016
billionHUF

31. 30
Local – Global trend
growth of ad spending still higher on global players
Net data
1,2
3,1 3,3
3,6
4,2
4,9
4,1
6,9
0,4
0,8
0,2
0,9
1,4
3,4
2,6
5,3
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
2009 2010 2011 2012 2013 2014 2015 2016
billionHUF
YoY growth (billion HUF)
global
local
32%
63%
41%
32%
28%
26%
17%
25%
2% 4%
1%
5% 7%
15%
10%
19%
0%
10%
20%
30%
40%
50%
60%
70%
2009 2010 2011 2012 2013 2014 2015 2016
YoY growth (%)
14,9 14,0
11,7
8,6
6,0
3,2
1,7
0,2 -1,5
-2,0
3,0
8,0
13,0
18,0
2008 2009 2010 2011 2012 2013 2014 2015 2016
billionHUF
Difference between ad spendings on global - local
players

32. 31
Local – Global trend
display: global players are gaining share
100%
93%
89% 85%
81% 81%
75% 72%
7%
11% 15%
19% 19%
25% 28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016
local global

33. 32
Local – Global trend
mobile: global dominance
100%
50%
20% 18% 15% 15%
50%
80% 82% 85% 85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016
local global

34. 33
IAB Hungary Adex 2016
Appendix

35. 34
Digital Ad Market 2013-2016
Key categories (YoY, share)
Net data
2013 spend 2014 spend 2015 spend 2016 spend
Change
2016/2015
Share
Display 18 149 mln HUF 20 962 mln HUF 23 243 mln HUF 28 967 mln HUF 25% 42%
Search 16 121 mln HUF 19 191 mln HUF 22 262 mln HUF 26 936 mln HUF 21% 39%
Listing 6 062 mln HUF 8 035 mln HUF 9 326 mln HUF 11 242 mln HUF 21% 16%
E-mail 824 mln HUF 1 246 mln HUF 1 341 mln HUF 1 239 mln HUF -8% 2%
Total 41 155 mln HUF 49 433 mln HUF 56 172 mln HUF 68 385 mln HUF 22% -

36. 35
Digital Ad Market 2013-2016
Subsegments (YoY, share)
Net data
2013 spend 2014 spend 2015 spend 2016 spend
Change
2016/2015
Share
Mobil 1 943 mln HUF 4 722 mln HUF 9 336 mln HUF 16 707 mln HUF 79% 24%
2013 spend 2014 spend 2015 spend 2016 spend
Change
2016/2015
Share
Total automated - mln HUF 4 388 mln HUF 6 325 mln HUF 9 053 mln HUF 43% 13%
Programmatic - mln HUF 85 mln HUF 580 mln HUF 1 028 mln HUF 77% 1,5%
RTB - mln HUF 85 mln HUF 513 mln HUF 944 mln HUF 84% 1,4%
2013 spend 2014 spend 2015 spend 2016 spend
Change
2016/2015
Share
Video spend 503 mln HUF 1 225 mln HUF 1 956 mln HUF 2 169 mln HUF 11% 3%

37. 36
Digital Ad Market 2013-2016
Listing subsegments (YoY, share)
Net data
2013 spend 2014 spend 2015 spend 2016 spend
Change
2016/2015
Share
Listing 6 062 mln HUF 8 035 mln HUF 9 326 mln HUF 11 242 mln HUF 21% 16%
1. Classifieds 3 917 mln HUF 5 550 mln HUF 6 513 mln HUF 7 739 mln HUF 19% 11%
Auto 643 mln HUF 812 mln HUF 949 mln HUF 1 123 mln HUF 18% 2%
Job 2 267 mln HUF 3 658 mln HUF 4 238 mln HUF 4 979 mln HUF 17% 7%
Real estate 1 007 mln HUF 1 080 mln HUF 1 327 mln HUF 1 638 mln HUF 23% 2%
2. Price comparison 1 280 mln HUF 1 738 mln HUF 1 933 mln HUF 2 262 mln HUF 17% 3%
3. Auction 590 mln HUF 472 mln HUF 400 mln HUF 541 mln HUF 35% 1%
4. General classifieds 275 mln HUF 275 mln HUF 480 mln HUF 700 mln HUF 46% 1%

38. 37
IAB Hungary

39. 38
iabhublog.com