Advertising:: statistics and trends

Advertising (ads) methods
Print ads : advertisement printed on paper( newspapers,
magazines, newsletters, booklets, flyers, direct mail,…)
3
Digital or online ads: advertisement through
digital media ( Internet)
Broadcast ads: ads through broadcast
network as TV and radio
Out-of-Home ( OOH): ads outside their
homes in “public places” ( posters,
billboards, ….)

Paid search ads: shown after a search engine query .
The most common form is a Google Ad, where they are the paid-for
results that show above organic results when you use Google to
search for something.
4
Types of digital advertising
Display ads: advertising on websites; they can
appear in many different formats and contains items
( text, images , video, audio,…). Typical examples:
banners or ads that play before watching a YouTube
video

Social Media Ads: use of social media
platforms to promote a product or
service. Most Social Media platforms
have some Ad capability.
5
Inbox Ads: sponsored content at the top
of a mail box. Ad service introduced by
Google Mail. Unless clicked, they simply
appear like an email

Transition at the digital advertising : advantages
6
From an Accenture report : Analysis realized with interviews at
some of the largest and most influential ad buyers and sellers in
the U.S.
Expected outcomes ( with % of
the interviewed operators)
Increased
ROI ( 100%)
Better audience/
Targeting data ( 87%)
Skills and
Capabilities ( 64%)
Increased Revenue
( 100%)
Maximized use of
inventory ( (87%)
More efficient use
of inventory ( 64%)
Advertisers Publishers

Pay -Per-Click ( PPC)
7
In PPC advertisers pay a fee each time your ad is
clicked. Essentially, it’s a way of buying visits to your
site, rather than attempting to “earn” those visits
organically.

PPC campaign
8
Choice of search engine for ad PPC ( most popular engines
are Google AdWords and Bing Ads )
Selection of right keywords : essential key to implement a
successfully PPC campaign. Keywords must properly describe
the online business, products or services to get conversions and
generate good ROI. The keywords can be selected with the
help of keywords tools such as Google Keywords tool
Create the landing pages having good call to action features so
that the visitor gets to see the product or service directly that you
want to sell online.
Define the Ad Campaign Daily Budget to spend per day for a
given ad campaign.
Landing Web page
Monitoring performance, analysis and feedback

9
Google AdWords is the
most popular PPC
advertising system . The
AdWords platform enables
businesses to create ads
that appear on Google’s
search engine and other
Google services.
Search engine advertising is a quite popular
form of PPC. Ad is placed in a search engine's
sponsored links when someone searches on a
keyword that is related to their business
offering

Retargeting : utilizes cookies to follow the website visitors of a site ( as an
example the site www.ladyborsa.com) as they travel throughout the web. An
ad encourages each user having already shown interest in ladyborsa.com ,
but haven’t yet made a purchase to return to your site. Remarketing can be a
relevant method to increase your brand recognition and awareness.
10

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Remarketing: ads are sent to people who have visited a website
( or a mobile APP) without buying anything. Remarketing is
often implemented through email campaigns to re-engage
customers in their inbox.
Forrester Research found that remarketing emails can generate nearly four
times more revenue and 18 times greater net profits compared with
marketing using simply untargeted mailings.

Remarketing is an effective strategy to
increase conversion rate of users having
abandoned your shopping cart. The mail
message must be sent in short time: in fact if a
visitor leaves the shopping cart and does not
return within the first 60 minutes, the
probability of them returning to complete the
sale at a later date are reduced by 90% - In
essence, 90% of e-commerce leads go cold
within the first hour! ( Moz.com)
12
According at a study realized by Baymard
Institute the average documented online
shopping cart abandonment rate ( about 2/3
of a site visitors who initiate an order will not
complete it) is 69.23%

Ad blocking: what is?
Ad blocking or ad filtering is a type of software (or less
commonly, a computer hardware device), that can remove or
alter advertising content from a webpage, website or a
mobile app ( from Wikipedia)
Ad blocking impacts in a negative way revenues for
publishers, but also the marketing activities of advertisers.
14
In 2016 Ad blocking is used by 419 million people; 159 million of these ad
blockers are in China, 122 million in India, and 14 million are in Europe and North
America.
Ad blocker usage surged 30% in 2016
Ad blocking trends alone are costing publishers € 20.53
billion in lost revenue.
From a report by PageFair

15
From a research by HubSpot on the in US and Europe
Dislikes ( as percentage of the interviewed users )
towards some ads types
87% of the interviewed users agree there are
two many ads
The most frustrating experience: full page pop-up adverts
that require the user to find an “X” to remove
Pop up ( 73%) Mobile ads ( 70%)
Video ad before content
loads ( 57%) Banner ads ( 43%)
Facebook ads( 40%) TV ads ( 36 %)

Ad viewability and the Web page
17
Above the fold is also used in
website design (along with
"above the scroll") to refer to
the portion of the webpage
that is visible without
scrolling.
Below the fold refers to the
portion of a webpage that a
user must scroll to see.
Important Information ( brand logo, site navigation, ad, any call to action, )
should be Above the Fold

Viewable impressions provide a superior metric which better captures how
many ads are being seen.
18
Served and viewable impression
Served impression: Each time the web page containing the ad is displayed,
one impression is counted even though the ad has not been seen. Therefore
advertiser is often paying for inventory which isn’t actually being seen by
people
Viewable impression: is a metric referring to an ad delivered
onto a web page in a place that could be seen by the user.
According to a research by Google, 56.1% of ads on the internet are
not seen by humans

Viewability standard
Standard on viewability impression has been defined by MRC (Media Rating
Council) and IAB (Interactive Advertising Bureau)
19
An ad is defined “Viewable” if at least 50% of its pixels
remain in the viewable space of the browser page ( above
the fold) for at least 1 second
An Ad with large dimensions ( over 242,000 pixels) is defined “Viewable” if
at least 30% of its pixels remain in the viewable space of the browser page (
above the fold) for at least 1 second
An in-stream video ad is defined “Viewable” if at least 30% of
its pixels are visible in the browser window for at least 2 seconds.

Three example of not viewable ads

> 1 s
> 50%
> 1 s
Example of viewable ads

Viewability ad and viewability rate
22
Viewability rate = number of viewable ads /number of ads

YouTube ad viewability is 91 percent
YouTube mobile viewability is slightly higher at 94 percent.
23
Video ad viewability across the Web
( from Marketing Land)
Viewability of video ads across the web is somewhat better than
general display

Native advertising
25
Native advertising is the integration of marketing content with
a website or service in such a way that it is not distinct from the
rest of the material presented there in terms of its content,
format, style or placement ( by Techtarget)
Native ads are designed to fit so closely with a publication’s content
that they appear to be part of a publication. Therefore it is a non-
intrusive form of advertising that does not interrupt users while
browsing content on the publisher’s website.

26
Native ads in the last years are growing dramatically both for
the increase adoption of ad blocking and for its higher
engagement capability with respect to traditional banner ads.
People view native ads 53 % more frequently
than traditional ads.
Native advertising can increase brand lift by as much as 82 %.
Some facts about native advertising ( by Forbes)
Purchase intent is 53 % higher when
consumers click on native ads instead of
traditional ads.
Native ads containing rich media can boost conversion by as
much as 60%.

Some data from a research by IPG & Sharethrough on native ads
Consumers looks at native ads 53%
more frequently than banner ads
27
25% more consumers were measured to
look at in-feed native ad placements (the
most common editorial native ad format)
than display ad units
Percentage
of lift in
purchase
intent
Percentage
of lift for
brand affinity
responses

Programmatic advertising
Programmatic advertising uses
intelligent software to purchase digital
ads as opposed to the traditional
process that involves requests for
proposals (RFPs), human negotiations
and manual insertion orders. It’s using
machines to buy ads
29
According to a report from Forrester, programmatic will account
for the majority of all digital advertising spending with the next
few years.
Programmatic ad realizes the buying, placement
and optimization of process more efficient as its
done by computers and algorithms

Why programmatic advertising?
Programmatic solution: digital ads are bought and sold in an automatic
manner through suitable software tools
30
Advertiser Publisher
Traditional solution: digital ads are bought and sold manually by ad buyers
and publishers

Traditional advertising
31
Slow Fast
Less efficient
More efficient
Expensive Less expensive
Relevant possibility of human
errors
Reduces human labor
Subjected to frauds ( 2%of ads
delivered through direct deals
with publishers are fraudolent)
More subjected to frauds ( 9% %
of digital ads delivered via
programmatic channels are
fraudulent)

32
Figures and roles in advertising

33
Ad
network
Ad
network
Advertisers Publishers
Ad
exchange

34
There are two main types of programmatic
advertising:
• Programmatic direct
• Programmatic Real Time Bidding ( RTB)

Programmatic Direct ad: the ad space is purchased in advance, based
on a specific number of required impressions and audiences required.
According at the James Ramsey definition programmatic direct
requires:
– Direct sale: a transaction between a buyer and a seller known to each other
and negotiated prior to the delivery of well defined goods, with terms agreed
upfront.
– Guaranteed: known position, known dates, known quantity (impressions,
share of voice etc) and known price.
– Automated: direct sale ( transaction and the delivery) must be implemented
through automation procedures and tools.
35

Programmatic Real-Time Bidding (RTB) : is the automated buying
of ads through software and real-time auctions.
36
The inventory is bought blind, whereby the advertiser only
knows the category of site that the ads will appear on, but not
the exact site. An Open Exchange allows many buyers to bid on
the inventory of many publishers in an auction environment, and
is the most standard way to buy inventory.

Programmatic advertising: some facts
( from Business Insider)
37
Mobile RTB and video RTB are growing even faster, at roughly
2X the rate of programmatic overall.
More than four-fifths of agencies and brands already purchase display ads
programmatically, while an even greater proportion of publishers are
pursuing programmatic channels as part of their sales strategies.
Advertisers and publishers are rapidly adopting
programmatic ad-buying and selling tools.
Spending on programmatic advertising is growing quickly:
about +20% annually.

38
Obstacles to optimize programmatic ad results
• not fully integrated DMP or DSP/SSP with other key
systems and tools
• Fragmentation of data sources about consumer preferences and behavior
• Advertising fraud ( fake ad traffic, fictitious
mechanisms for delivering ads that are not seen by
consumers,…).
Top problems with programmatic ad ( US users report by
eMarketer): interview with US Senior AD buyers)
Multidevice measurements ( 57%) Fraud ( 47%)
Ad blocker ( 47%)
Ad blocker on
smartphone 35%)
Privacy ( 18%)

Advertising:
Facts and statistics in 2016
39

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In 2016 advertising spending has been € 508.39 billion ( increase of
5.7% with respect to 2015)
Data by eMarketer
Worldwide Advertising Spending
Different estimate by Magma Global : € 463.3 billion with a grow
of 5.7%

Worldwide revenue grow in 2016
41
Offline +0.3 %
Digital ad +17 %
Totale ad +5.7 %

The 5.7% growth in 2016 is mainly due to digital advertising sales
42
Digital advertising revenue: € 166.85 billion ( + 17% )
Offline media ads revenue : € 295.26 billion ( +0.3%)
TV Radio Print
Out-Of_Home
Display Video Search Social

Ads spending has been boosted by extraordinary events as
the US presidential election, Rio Summer Olympics and the
Union of European Football Associations’ championship
Without these events traditional media would have been
down by -2%.
43
• U.S.A. presidential election: incremental ad spending € 2.96 billion
• Rio 2016: incremental ad spending € 1.85 billion
Data by The Wall Street Journal

Advertising spending
in 2016 has grown of
$ 27 billions
44
2015
$ 466
billion
2016
$ 493
billion
Global ads spending
+ $ 27 billions
Digital ads
All traditional media

2016: advertising ( data by Magna Global )
Global Revenue
€464.73 bn
% growth
5.7
Growth
€ 25.27 bn
% of total
100
USA Revenue
€ 170 bn
% growth
6.9 %
Growth in
€ 11.23
% of total
37
North
America
Revenue
€ 180 bn
% growth
6.7 %
Growth in
€ 11.23
% of total
39
Western
Europe
Revenue
€ 94.25 bn
% growth
3.9 %
Growth in
€ 3.74
% of total
20
Central &
Eastern
Europe
Revenue
€ 15.8 bn
% growth
6 %
Growth in
€ 0.94
% of total
3
Latin
America
Revenue
€ 21.68 bn
% growth
5.5 %
Growth in
€ 0.94
% of total
5
Asia
Pacific
Revenue
139.5 bn
% growth
5.3 %
Growth in
€6.55
% of total
30
45

The biggest contributors at the revenue growth in 2016
Data by Magna Global
46
China (+7.2%)
North America remains the
largest market, growing +6.7% to
$191 billion
Australia(+7.4%)
USA (+6.7%)
UK (+5.2%)
The biggest downward revision comes
from Brazil (from +5.0% in 2015 to
+1.9%).

47
• TV
• revenue € 172.82 bn
• Digital
• Print
• Radio
• Out-Of-Home
Worldwide media ads spending in 2016 ( data by Magna Global)
Spending grow 2016 in %

48
Media ads spending for industry sectors in US
By eMarketer
Retail
21.9%
Automotive
12.7%
Financial services
12.2%
Telecom
11%
Travel
8.3%
Computer &
Electronics
7.6%
Media
5.9%
Entertaiment
7.6%

49
Europe
Data from a report of Goldman Sachs
In 2016 the advertising markets grew by nearly +4% for the third year
Digital ads :
€ 51.22 bn
TV ads :
€ 40.34 bn
Newspaper ads :
€ 17.33 bn
Magazine ads :
€ 8.2 bn
Radio :
€ 6.05 bn
Out-Of-Home :
9.2bn

Linear television advertising sales grow by nearly
+4% with a revenue equal to € 173.25 bn.
This grow has been helped by :
Advertising on TV in 2016
Data by Magna Global
50
In 2017 it is predicted a reduction ( -0.1%).
• cyclical events, as pricing inflation (CPM +8%) offset a
decrease in ratings (-7% in the US, more moderate
elsewhere).
• special events as by events as the US
presidential election and Rio Summer
Olympics.

In Europe digital advertising revenue ( € 33.91 bn) exceeds
TV revenue ( € 31 bn) in 2015 ---- Data by IAB Europe
51
Advertising spending on digital media is surpassing TV
In U.S.A. Digital the advertising revenue ( € 67.13 bn)
exceeds TV revenue ( € 31 bn) in 2016 ---- Data by
eMarketer
TV 2015 revenue € 64.14 bn
Digital 2015 revenue €66.39 bn
Digital 2016 revenue € 67.13 bn
In China digital advertising revenue is higher than the
TV revenue from some years ---- Data by eMarketer

52
Digital ad spending (including mobile) in 2016 :
- € 181.1 billion ( eMarketer)
- € 165.65 billion ( Magna Global)
( Magna Global)
Digital ads spending : 35.3% of total media ad spending ( eMarketer)
Global advertising revenue grow in 2016: $ 27 billion
– $26 billion is coming from increases in digital advertising.
– $ 1 billion from all other advertising media

53
90% of the global grow of digital advertising spending came from
two ad formats only: search and social.

The 17% growth in digital ad sales are entirely driven by mobile
advertising , while desktop-based ad sales stagnated (0%) in 2016 (
Magna Global)
54
Worldwide digital advertisement
grow in 2016: +17%
Mobile ads revenue in 2016 :
€ 74 billion ( eMarketer)

Some digital ads formats in 2016 ( by Magna Global)
55
mobile advertising
Video formats
Social formats
Search
Banner
+ 48% + 43%
+ 35% + 14%
-6%

US ad digital spending in 2016 ( data from eMarketer)
56
• Total revenue $ 37 billion
• -2.1% versus 2015
• 21% of total revenue
Desktop
• 18.6 % versus 2015
• 19% of total revenue
Search
• 54.2 % versus 2015
• 18 % of total revenue
Mobile
• 48.2 % versus 2015
• 9 % of total revenue
Social

Ad spending in Western Europe in 2016
( data from eMarketer)
57
Western Europe is the world’s third largest advertising market, worth nearly
94 billion in 2016
Digital advertising: revenue € 33 billion equal to
35% of the total advertising revenue
Paid search maintains its important role for Western Europe’s
advertisers; it account for nearly € 15.4 billion ( about 34% of
the digital ad revenue)
Display is gradually gaining share in most markets in Western
Europe, as brands boost their investments in video and mobile
display formats in particular.
Mobile internet ads will rise nearly 45% in 2016 for a revenue of
and pass € 15.4 billion.

58
Ads spending in some European countries
European online advertising grew 12.2% in 2016
to €41.8bn ( IAB UK).
UK 1,548 M€ D 443 M€
F 398 M€ E 278 M€
I 233 M€ NL 222 M€
S 194 M€ DK 106 M€
B 88 M€ FIN 82 M€
Data from Statista

60
Advertising:
facts and statistics
in 2016

Paid Search represents 46% of total digital spend globally in 2016
and therefore is the largest portion of digital advertising budgets (
by Ironpaper)
61
Global search advertising revenue
about € 83.94 billion in 2016.
USA
Search revenue : € 30.52 billion ( 36.4%)
China
Europe

62
Paid search revenue in 2016 in some countries

63
Advertising:
in 2016

Social media advertising is the second
largest portion of digital budgets , and the
fastest growing format.
64
Advertising sales in social media (including
video formats) in 2016
Social media advertising is the fastest
growing format.
( data by Magna Global)
.

65
Advertising:
facts and statistics in 2016

66
Mobile advertising
In 2016, the number of people accessing the Internet
through mobile devices worldwide surpassed those
using desktops ( Mobile Marketer) .
Mobile advertising accounts for 45% of total digital ads by the end of
2016 and will account for 52% by the end of 2017 ( Magna Global)
Mobile advertising increased by +48% in 2016 to reach
$80 billion, or 45% of total digital advertising revenue
( Magna Global)

Statistics on consumer mobile usage
67
The total browser time per month on desktop by
user ( expressed in hour/month – hr/month:
• USA : 34 hr/month
• UK 29 hr/month
the total browse time per month is much higher on
smartphones ( from Smart Insights)
USA: 87 hr/month
UK: 66 hr/month
Italy: 57 hr/month
Spain: 52 hr/month

The mobile ad spent gap: large margins for advertising
68
Following a report by KPCB there is a significant gap between time
spent and ad spend on mobile ( data are referred at US users in 2015)
Mobile - KPCB found that consumers spend 25% of their time
engaging with mobile devices, but advertisers are only investing 12%
of their budget in mobile. High margins for ads!!!!
TV - time spent by consumers : 36%; Ad spent by advertisers: 39
% of their budget
Print - time spent by consumers 4%, Ad spent by advertisers
16% of their budget
Radio - time spent by consumers : 13%; Ad spent by advertisers:
10 % of their budget
Internet - time spent by consumers : 22%; Ad spent by
advertisers: 23 % of their budget

69
Advertising:
in 2016

Social media growth has been driven by multiple factors,
including the rise of social video
70
Video ads on mobile represent an another emergent advertising
market. In 2016 mobile ads have been is 81% of total social
advertising revenues ( in 2012 mobile ad sales were just 6% of
social advertising spend globally)
Social video advertising

Digital Video ads
Digital video ads are one of the fastest-growing ad
mediums
71
Digital video ads can provide today a visual
and narrative quality that nearly equals
television
Video conveys huge amounts of information in a short
time.
Video tells a story better than other
formats; it is optimum for storytelling.

Video and mobile: some facts
72
Over half of video content is viewed on
mobile (Business 2 Community ).
92 % of mobile video viewers share videos with
others (Business 2 Community ).
90% of Twitter video views happen on a mobile device (
Adèlie Studios).
51% of all video plays are on mobile devices -- this growth represents a
15% increase from 2015 and a 203% increase from 2014. (Hubspot)

Video ads have an average click-through rate (CTR) of 1.84%, the
highest click-through rate of all digital ad formats ( Business Insider)
73
92% of B2B prospects consume online video
Video - CTR 1.84 Mobile - CTR 0.8
Display - CTR 0.2 Flash - CTR 0.11

74
The rapid rise of social video was perhaps the
biggest game changer in the advertising
industry in 2016 ( Magna Global)
About 33% of shoppers will purchase a
product after viewing a video ad
Video ads is well accepted by among
mobile users.

75
Mobile video consumption on Youtube rise 100% every
year
Video on email leads to 200-300% increase in CTR
Video on a landing page can increase conversion
rate by 80%
Combining video with full page ads boost
engagement by 22% ( by Hubspot)
4 billion videos are watched on YouTube every day
Videos under five minutes in length account for 55% of total video
consumption time on smartphones. (Ooyala)

Social video generates 1,200% more shares than text and
images combined ( Brightcove and Business 2 Community )
76
The 25-34 (millennial) age group watches the most online
videos and men spend 40% more time watching videos on
the internet than women (Business 2 Community ).
Online shoppers who view demo videos are 1.81x more likely to
purchase than non-viewers ( Digital Marketing Blog and Insivia).
4x as many customer would rather watch a video about a product than read
about it (Animoto and Insivia ).
People spend on average 2.6x more time on pages with
video than without (Wistia).
Facebook users spend 3X more time watching live videos than traditional
videos. (Facebook Newsroom)

77
Marketers who use video grow revenue 49%
faster than non-video users (Business 2
Community ).
87% of online marketers use video content (Business 2
Community ).
In 2016, 14% of marketers
used live video
(Social Media Examiner)
The average click-through-rate (CTR) of video ads is 1.84 percent,
the highest CTR of all digital ad formats ( Points Group) .

Video length ( from Points Group)
78
Preferences about time length
46% of people say that video ads shouldn’t
be longer than 15 seconds
Completion rate
Click-To –Rate (
CTR)

Video advertising
Video advertising encompasses advertisements
having video, but it refers generally to advertising
before, during and/or after a video stream on
Internet.
79
The video ads can be placed before, after or in the middle of the
video content.
The placement choice is relevant for the success of the ads
campaign and depends on the marketing objectives
Video length versus engagement ( from Wistia)
Engagement is steady up to 2 minutes, meaning that
a 90-second video will hold a viewer's attention as
much as a 30-second video.

80
Classification of video ads
Pre-roll ads: the promotional video message plays before the
content selected by the user ( typically 10-15 seconds long).
Mid-roll ads: the promotional video message appears during an
online video ( typically 10-15 seconds long).
Post-roll ads: the promotional video message appears after an
online video

81
Post-rolls represent a minor portion of total ads for premium
content providers, yet they did see a modest bump in growth
from 3.5% to roughly 7% of all ads.
Pre-roll ads, though still the most dominant
format
Pre-roll ads dropped from their
perch of 75% of all ads in March
2015 to 60% in April 2016.
Mid-roll ads increased a total of
24%, growing from 19% of all ads in
February 2015 to 33% by April 2016.
Pre-roll has a lower completion rate than mid-roll by 20% to
25%. ( Varrando)
Some statistics by Ooyala

Worldwide video ads revenue
82
Data by Statista
and Magna Global
Video ad formats already account for nearly 15% of the social media
advertising revenues (Magna estimates)
Together other forms of digital video ad sales (full episode
players, YouTube and video ad networks), social video represents
already 25% of digital video advertising (Magna estimates)

U.S. Digital video revenue vs. TV revenue (by
eMarketer)
US digital video ad spending has grown significantly in these last years while
contrast, TV ad spending has grown much more modestly, at rates ranging
from 2.0% to 2.5% on YoY basis. 83
64.25
64.57
66.18
63
64
65
66
67
2014 2015 2016
Revenue(€billion)
Digital video
TV

84
Advertising:
facts and statistics in 2016

85
Most popular methods
of paid advertising
A research by Click Z based on more than 500 advertising professionals ( agencies
and brands) across various industries.
of paid advertising
on desktop
Paid search / PPC 74%
73%
70%
Social ad
Display ad
Retargeting & remarketing 53%
Programmatic ad 30%
Paid search / PPC 70%
70%
61%
Social ad
Display ad
Retargeting & remarketing 44%
Programmatic ad 22%
of paid advertising on
mobile
In-APP ad 27%

86
Facebook
45%
YouTube
43%
Twitter
6%
Instagram
3%
Snapchat
3%
Linkedin
1%
The platforms with the most annoying ads for millennials ,
Gen X and Baby Boomer
( research by Business Insider based on 1,740 respondents )
Millennials Gen. X Baby Boomer
The most annoying platform : data for Facebook and YouTube

Data from Limelight Networks and eMarketer
Why people block
video ads?
87
Video poor quality :
65.8 %
Too many ads
during video :
61.8 %
Video pauses/buffers >1 :
51.3 %
At the beginning unclear
the video content
40.9 %
Before the video
I can skip the ad
26.7 %
There is an ad
before the video
16.4 %

88
Advertising:
in 2016

Google ( from qz.com and Statista)
89
In the last 2016 quarter the ads revenue ( € 24.18 billion, +17%
with respect to the same quarter in 2015); represents the 87% of
all Google revenue in the quarter.
2016 advertising revenue: € 73.51 billion ( +17.8%)
High growth of advertising revenue in the
last three years
2014: +16.75% 2015: +13% 2016: +17.8%

Percentage of US search ad revenue that is earned by
Google 77,8%
90
Google’share of the global digital advertising
market: 31.1%
Google’share of the global mobile advertising
market: 40.5 %

Google paid search
91
Revenue 2016 paid search : € 24.35 billion, up 22% with
respect to 2015
Paid clicks on Google properties ( AdWords revenue that
is generated on Google.com and other Google properties
as Gmail, Maps, and Google Play , You Tube, TrueView and
Google Preferred ) : + 43% with respect to 2015
Paid click on Google Network Members' properties (
AdSense , AdMob, DoubleClick AdExchange ) ): + 7%
with respect to 2015
Data from Business Insider

In 2015 about 60% of the Google ad revenue come from desktop terminals
and about 40% from mobile
92
Mobile ads revenues in 2016 in US
Data from eMarketer
Desktop and mobile ad revenues in 2015 and 2016 as percentage of the
total Goggle ad revenue
In 2016 revenues from mobile and desktop are each equal to 50%. Mobile
revenues are grown of about 10%

Desktop
30.6%
93
Smartphone
48 %
Tablet
11.5 %
Percentage of search ad clicks
in function of the terminal in 2016Data from DMR
Percentage of ads served by Google
Doubleclick never seen : 56%

94
Data from DMR
Click-through-rate ( CTR) for Google ad
Ad in second position: CTR 11.4 %
Desktop Ad in first position: CTR 10.3 %
Mobile
Ad in second position: CTR 9.2 %
Ad in first position: CTR 27.7 %
Average cost for acquisition of AdWords search
ads : $ 59.18
Average cost for acquisition of AdWords display
ads : $ 60.76

Conversion rate in AdWords
95
Report by Smart Insights : data based on a sample of 2,367 US-based
WordStream client accounts
Average conversion rate in AdWords
Paid search: 2.70% Display search: 0.89 %
The average CTR varies in a sigificant way with the industry sector.
B2B
CTR =2.58% CTR = 0.96%
ecommerce
CTR =1.91% CTR = 0.95%
Finance &
Insurance
CTR =7.19% CTR = 1.75%
Home
Goods
CTR =3.68% CTR = 2.19%
Auto
CTR =2.27% CTR = 0.79%
Travel
CTR =2.57% CTR = 0.53%

Youtube generate 6% of Google’s ad sales revenue ( Fortunelords)
96
85% of digital video viewers are YouTube viewers ( eMarketer)
Referring at the OTT usage ( over-the-top - mean the delivery of film and TV content
via the internet) , YouTube approaches saturation at 95% ( eMarketer )
Some statistics about Youtube
Google does not break out YouTube ad earnings separately. However,
eMarketer estimates YouTube ad revenues grew 30% over the course of
2016 to roughly € 5.13 billion ( Tubefilter)
Among millennials, YouTube accounts for two-thirds
of the premium online video watched across devices
9% of U.S small businesses use Youtube

97
Facebook users are 76% female (out of 100% of all
females) and 66% male (out of 100% of all males) - (
Zephoria).
Worldwide, there are over 1.94 billion monthly
active Facebook users for March 2017 (Facebook
MAUs) which is an 18 percent increase year over
year ( Zephoria)
There are 1.15 billion mobile daily active users (Mobile
DAU) for December 2016, an increase of 23 percent year-
over-year. This is hugely significant and shows the dramatic
growth of mobile traffic on Facebook ( Zephoria)
Facebook : some data

Total number of active Facebook advertisers: 4 billion ( DMR)
98
Percentage of all Facebook pages that advertise
on Facebook : 6% ( DMR)
Percentage of Facebook advertisers from outside U.S. : 70 % ( DMR)
Growth in the Facebook advertisers from 2015 -
2016 : 50 % ( DMR)
Percentage of Facebook advertising budget that is dedicated to mobile: 57 %
( DMR)
Facebook : some data about advertising

Facebook dominates the display
advertising
99
Facebook worldwide advertising revenues
Data from Facebook
A larger share of the total each year is
coming from outside the US—54% in
2016—and mobile is accounting for
more of the social network’s ad
revenues as well ( eMarketer)
Facebook has more than 5 million businesses advertising
each month

100
Facebook advertising: mobile is the
greatest ad revenue source
Facebook mobile ad trends
2015: + 77.8%
2016: + 66.6%

North America is the most profitable market : increase of 350% in 2016 with
respect to 2012. This great achievement is closely linked to the
overwhelming success of mobile advertising business, which has grown from
virtually zero (pre-IPO) to $ 22.5 billion in 2016.
101
Average revenue per user in 2016
( by “il Sole 24 ore” and by Statista )
Worldwide 2016: $ 16
2012: $ 5.32
Percentage grow
+200%
U.S. + Canada 2016: $ 62.23
2012: $ 13.58
Percentage grow
+358%
Europe 2016: $ 19.40
2012: $ 5.91
Percentage grow
+228%
Asia Pacific 2016: $ 7.29
2012: $ 2.32
Percentage grow
+210%
The Rest of the
World
2016: $ 4.66
2012: $ 1.84
Percentage grow
+153%

Facebook ad revenue in U.S.
102
Facebook ad revenues in 2016 in
percent of the total U.S. Social
network ad revenues
2016 : 73.9%
2015 : 77.7%
In U.S. the Facebook revenues from display ad have reached in
2016 the amount of € 11.35 billion with a grow of 54% with
respect to 2015
Display ad revenues represent 39,1 % of the US display market (
following data from eMarketer, Marketing Land)

55% of marketers currently use Facebook as their main platform
and 67% of respondents plan to increase their marketing
activities on Facebook. ( Social Media Examiner)
103
Facebook in U.S.
An overwhelming 86% of social marketers regularly use
Facebook ads, while only 18% use ( Social Media Examiner)
Facebook has a 66% effectiveness rating for B2C social media
platforms

Revenue in Europe (Data from Statista)
104
Ad Revenue in Europe is
growed in a constant way
from 2012 to 2016:
about 50% per year
European country with highest ad spending: UK
revenue € 1.65 billion with a grow of 31% with
respect to 2015

Instagram’s ad revenue is a large part of the Facebook’s
overall business.
Being owned by Facebook makes it easy for advertisers to
extend their buys
105
Ad revenue was available on Instagram from September 2015
Instagram worldwide ad revenue
reported in € ( billion)
In September 2016, Instagram had over 500,000 advertisers, more than
doubling its ad base in six months.
The top five countries seeing advertiser adoption were the US, Brazil, the UK,
Australia and Canada ( eMarketer)

Instagram is now being utilized more than Twitter in social media advertising
campaigns, according the most recent Advertising Agency Survey by STRATA
(from PRNewswire)
106
In the STRATA survey Facebook and YouTube maintain their
top positions (96% and 67% of agencies plan on advertising on
those sites), but 63% plan to use Instagram while 56% are
planning to use Twitter, which fell to fourth place (from
PRNewswire)
In a research US ad agencies named Instagram as the top
social network they plan to increase their budgets with in
2017 ( 75% of respondents ) --- from 4CInsights.

Instagram has the most engaged audience out of all
social sites.
107
From a Forrester research :
top brands’ Instagram posts
generated a per-follower
engagement rate of 4.21%.
That means Instagram
delivered these brands 58
times more engagement per
follower than Facebook, and
120 times more engagement
per follower than Twitter.
A Yotpo’s research showed that Instagram engagement rate is not
only higher than other social media platforms, but also beats out other
channels like email, referral traffic and paid acquisition.

Instagram offers the following main types of ads to choose from
108
Types of Instagram ads
Photo ads: this ad format allows the creation of sponsored
posts featuring a product or service
Video ads: Instagram allows 30 seconds video ads
Carousel ads: this ad format permits to showcase multiple photos
within a single ad as well as include a link to the brand’s website or
webpage. Carousel can be used in a creative way to “tell a story” with
a sequence of photos, or simply display the product you are advertising using
different shots.
Marquee ads: A premium product for Instagram advertisers
that helps drive mass awareness and expanded reach in a
short time frame—perfect for events like movie premieres
and new product launches.

Some best Instagram ad facts
( by Adespresso)
109
Instagram users also tend to spend more money with brands
they engage with
Instagram users spend on average $65 per referred sale. In
comparison, Facebook users spend $55, and the average
referred sale from Twitter is just $46.26 ( from a report by
Shopify)
Instagram is one of the preferred social network by
Millennials and woman : 53% of young adults ages 18-
29 now use the service, compared with 37% who did so
in 2013. women are particularly likely to be on
Instagram ( from a report by Pew Research Center)
Instagram is a platform where users actively seek out branded content and
organic reach still reigns supreme. Instagram’s users very willing to engage with
branded content on the network. 68% of users regularly engage with brands on
the site ( in Facebook only 32 % of users do the same) – by AdWeek

Twitter’s audience size continues to grow also if slowly
110
Monthly active
users on Twitter
( by Marketing
Land)
2016 ad revenue : € 2.06 billion ; +12.6% with respect to 2015

111
Types of Twitter ads
( by Hootsuite)
Promoted Tweets: a regular Tweet paid by an
advertiser pays to display to people who are not
already following them on Twitter. Promoted
Tweets appear directly in targeted users’
timelines, at the top of search results, and in the
Twitter mobile app
Promoted Accounts: Twitter account in front of targeted Twitter
users to gain relevant followers. Promoted Accounts are displayed
directly in potential followers’ timelines, as well as in the Who to
Follow suggestions and search results.
Promoted Trends: Trending topics on Twitter are the most talked about
subjects on the social network, appearing on the left side of the page, on the
Discover tab, and on the Twitter app. Promoted Trends allow you to promote
a hashtag at the top of that list

Snapchat is one of today’s fastest growing social media platforms
and is super popular with millennials.
112
Snapchat ad revenue
2015
2016
€ 52.83
million
€ 327.23
million 2016 ad
revenue
growth
Snapchat currently derives 95% of its ad revenues from the US.
However, as it begins to monetize users in other countries where it has
a substantial user base—particularly the UK—the non-US share of its
ad revenues will grow ( by eMarketer)
Snapchat reaches 41% of all 18-34 year-olds in the United
States ( by Techcrunch) .

Snap Ads: a mobile video ad ( maximum 10-second) with the option to provide more
information to users as : access to longer videos (up to 10 minutes) , articles,
interaction with the brand and buy directly, through an app install page or mobile
website that users access without leaving the Snapchat app.
113
Snapchat
Sponsored Lenses: a set of filters that would respond to a user’s facial movements,
adding sounds and interactive motion effects to video selfies. They enable advertisers
to build branded experiences that can be shared with their frieds
Sponsored Geofilters: are location specific overlays that users can choose to add to
their snaps (pictures) after they have taken them. Geofilters are specific to a location;
a Geofilter can be created for people taking snaps in a specific location and for a
specific amount of time.
Snap Live Stories: is a collection of pictures/videos that last up to 24 hours after the
time posted of each respective picture/video.; pictures/videos are submitted from
different users , usually having to do with an event/occasion.

114
Revenue for different ads types
Data from eMarketer ( Adweek)

Buyable Pins (E-Commerce): allow to connect Pinterest with a store in
Shopify, BigCommerce, Salesforce Commerce. Buyable pins are blue in color
and visitors can buy directly without leaving the platform.
115
Promotable Pins: suitable to increase reach and awareness for the brand
content.
Promotable Video: launched in 2016 , suitable for opportunity for businesses
to share their ideas with customers
Pinterest has started with advertising in 2015
Pinterest advertising
Expected ad revenue in 2017: $ 500 millions ; +67%
Data from Recode

116
Linkedin
LinkedIn is the world’s largest social network for working
professionals
Total number of LinkedIn users: 467 million
Total number of LinkedIn Groups: 1.5 Million
Total number of monthly active LinkedIn users: 106 million
Total number of LinkedIn users from the USA: 133 million
40% of users use LinkedIn Daily

118
Worldwide media growth of advertising revenue in 2017
( by Magna Global)
Worldwide ad revenue will grow slowly ( 3.6%) in 2017, the lowest growth
rate recorded in 15 years outside the great recession of 2008-2009
Digital media sales to grow again by double-digits (+13%) while offline ad sales
will shrink by 2%.
Search + social network
Mobile
Linear TV
Print
Radio
OOH

119
Worldwide media growth of advertising revenue in 2017
( by Magna Global)
In U.S. ( and so in North
America) the high growth
in 2016 ( + 6.9) was
enhanced by the
extraordinary events of
the presidential elections

Social network ad spending in 2017
(by eMarketer)
120

121
US digital ad spending change by format in 2016 and
2017
data by eMarketer
TotalUS digital ad spending
change
• 2016: +18%
• 2017: +13.6%

UIS digital ad revenue in 2017
Data from eMarketer
122
US digital ad spending will reach $83.00 billion in 2017,
representing an increase of 15.9%
Google will maintain its dominance and account for 40.7% of US digital
ad revenues in 2017—more than double Facebook’s share.
Google’s share of the search market to grow 16.1% to $28.55 billion
in 2017. The search giant will claim roughly 78% of total US search
ad revenues this year.
Facebook dominates display ads. Its
US display ad revenue will jump
32.1% to $16.33 billion, capturing
39.1% of the US display market

Mobile advertising penetration
Data from Magna Global
123
Mobile-based impressions and sales are the primary growth driver
In 2016 worldwide mobile advertising increased by +48% ( €
71 billion) and it has been 45% of total digital advertising
revenue. I
n 2017 it will increase of 31% and mobile will become the
majority of digital advertising revenue for the first time.
By 2021 mobile advertising will have increased to € 191 billion, or 72% of total
digital revenue

Some critical facts in advertising
Search traffic and spend groth in the priod Q4 2014 -- Q4 2016 (
by Adobe )
124
Consumer spend less time on web sites ; total time spent on
site deacreases by 22 seconds ( -6 %) in 2016 with respect to
2015

Facebook : mobile advertising trends
125
Worldwide ad mobile revenue and growth
Data from eMarketer
A larger share of that total each year is coming from outside the US
In 2016 mobile ad revenue outside the US has reached 54% of the total
2015 € 11.8 billion + 77.8%
2016 € 19.65 billion + 66.6%
2017 € 26.6 billion + 35.12 %
2018 € 33.96 billion + 27.8 %

Snapchat: ad revenue trends (Data from eMarketer )
126
Snapchat currently derives 95% of its ad revenues from the US; however, in
the next years revenues from outside US will grow significantly.
In 2018 the ad revenue from US will be 75% of the total Snapchat revenue.
2015 € 52.83 million
2016 € 527,23 million 159 %
2017 € 836.54 million + 35.12 %
2018 1573.54 billion + 27.8 %
Worldwide ad mobile revenue and growth

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