European Interactive Advertising Association

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European Interactive Advertising Association
Media trends and the development of e-commerce
across Europe
Alison FennahExecutive Director, EIAA
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EIAA Objectives

• Champion and improve the understanding of online
  advertising as a medium
• Promote the efficiency of online advertising as
  part of the media mix
• Think regionally, benefit regionally and at local
  level
• Increase the total value of investment into
  online advertising

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EIAA Who?
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Background

• EIAA has made significant investment in research,
  particularly in the areas of media consumption
  and advertising efficiency, key projects include
• Mediascope Europe
• Marketers Internet Ad Barometer
• Case Study Library
• Online Ad Effectiveness
• As part of this commitment to research, the EIAA
  has for the past four years conducted a large
  scale study of media consumption habits in Europe
• enabling it to track changes in media consumption
  habits in order to illustrate how internet usage
  as a share of media consumption is changing and
  therefore how media planners should spend their
  clients ad spend

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Presentation Agenda

• 1. Mediascope Europe
• Research Objective
• Methodology Sample
• How Often are Europeans Online
• How Long Europeans Spend Online
• Broadband Penetration
• Personal vs. Work Internet Usage
• Web Activities Web 2.0
• Online Shoppers -
• Growing Conversion Rates
• Number of Items Bought Online and Amount of Money
  Spent
• European Bargain Hunters
• Online Shoppers Internet Usage

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MEDIASCOPE EUROPE
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Research Objectives
OVERALL PROJECT OBJECTIVE

• The broad aim of this study is to measure and
  track changes in media consumption patterns by
  various demographic segments and nationalities.
  This work will show when, why and how often
  people are using different media in particular
  usage of the Internet for content, communication
  and commerce

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Methodology Sample

• Scandinavia
• Sweden - 334
• Norway - 334
• Denmark - 333

Netherlands 500
Belgium 500
Germany 1,008
TOTAL SAMPLE
UK 1,015
7,036 interviews across 10 European countries

• Within each territory quotas were set to ensure
  our sample was representative of each market.
• Quotas were applied on
• age, gender, education and regional distribution
  within countries

France 1,002
Spain 1,002
Italy 1,008
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Methodology Sample

• 7,036 Computer Aided Telephone Interviews (CATi)
  were conducted by Synovate on behalf of SPA and
  the EIAA in 9 EU countries and Norway
• A sample size of 7036 provides accurate data to
  1.1 0.8 at the 95 confidence level
• Fieldwork took place in all territories between
  4th-25th September 2006
• Interview length ranged from between 25-30
  minutes
• The application of quotas ensured that
  representative samples were achieved in each
  country
• quotas on age, gender, education and regional
  distribution
• Results at the total level were weighted to take
  into account the different countrys population
  sizes. Using 2005 data from the UN the following
  weighting matrix was developed

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Europeans Usage of The Internet

• European weekly internet usage has grown by 10
  year-on-year with weekday growth of 17
• Spain slightly higher with a 23 growth since
  2005 in weekly internet users
• 35-54 year olds and women are driving internet
  growth in Spain
• After 10am each day, the internet is the second
  most used medium
• 45 of online Europeans go online everyday of the
  week
• Online Europeans are now online 5.4 days a week

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European Weekly Usage up 10 Year-on-Year
Q1a In a typical 7 day week, that is Monday to
Sunday, can you tell me if you use the internet?
Year-on-year change
European Average 54
Base All Respondents in Europe
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Internet Usage in Spain increases by 20
Year-on-Year
Q1a In a typical 7 day week, that is Monday to
Sunday, can you tell me if you use the internet?
2006
Base All Spanish Internet Users Respondents
13
Internet is the Most Popular Media During the
Evening in Spain
Q1b. What times of the day do you
typicallyduring week?
Base All Respondents in Europe and in Spain
using each type of media
14
Personal Usage Drives Weekend Internet Use up 17
Q1a In a typical 7 day week, that is Monday to
Sunday, can you tell me if you use the internet?
Year-on-year change
European Average 42
Base All Respondents in Europe
15
Internet Users in Spain go Online More at the
Weekend
Q2a/3a In a typical weekend can you tell me if
you use the internet?
2006
Base All Spanish Internet Users Respondents
16
Over Half Use the Internet Every Day in Spain
Q4. In a typical seven day week, on how many days
do you use the internet?
using the internet every day
Base All Spanish and European internet users
17
Europeans Are Online More Than 5 Days Per Week
Q4. In a typical seven day week, on how many days
do you use the internet?
Internet users in Spain are online 5.7 days a week
Base All European internet users
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Internet Still Growing While TV Stagnates
Q4. In a typical seven day week, on average how
many days do you use TV/internet?
TV
Internet
Base All TV viewers in Europe
Base All internet users in Europe
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How Long Europeans Spend Online

• The average European internet user spends 11
  hours and 20 minutes online each week
• The numbers of hours Europeans spend online is
  having a direct effect on the amount of time they
  spend using other media
• In Spain internet users spend 12.1 hours online
  per week, 9 since 2005
• 25-34 year olds in Spain spend the most time
  online and are driving growth

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Internet Users in Spain Spend 12.1 Hours Per Week
Online
Q5ai Q5aiii. In a typical seven day week,
approximately how many hours do you tend to spend
using the internet?
25-34 year olds spend the most time online
14
11
3
9
5
12
Average Number of Hours Per Week
Base All Spanish Internet Users Respondents
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Europeans Spend Over 11 Hours Online Per Week
Q5ai Q5aiii. In a typical seven day week,
approximately how many hours do you tend to spend
using the internet?
2005 10.2, 11 Year-on-Year
Average Number of Hours Per Week
Base All European internet users
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Time Spent Using the Internet Growing at the
Expense of Other Media
Q5a In a typical week how long do you spend
watching television/reading newspapers/reading
magazines/listening to the radio/using the
internet?
6
14
28
-2
Average number of hours per week
-11
Base All European users of each media
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Time Spent Using the Internet Growing at the
Expense of Other Media
Q5a In a typical week how long do you spend
watching television/reading newspapers/reading
magazines/listening to the radio/using the
internet?
-8
-8
9
-2
6
Average number of hours per week
Base All Spanish users of each media
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Broadband Changes How Europeans Live Their Lives

• 71 of Spanish internet users now use broadband
  at their main point of internet connection
• Broadband penetration is up 14 across Europe
  year-on-year
• More than 70 of internet use is personal or for
  leisure purposes
• The Internet is increasingly viewed as
  time-saving and as putting you ahead of the game
  more than other more traditional media

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Broadband Penetration up 14
QC3. Thinking about the place where you use the
Internet the most, do you have a broadband
connection?
Year-on-year change
Base All internet users
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Internet Seen as a Personal Leisure Tool Across
the Union
Q12. What proportion of typical weekly internet
usage is personal and what percentage is work
related?
Base All Internet users
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The Internet Provides Spanish What They Want When
They Want it
Q5g. Which one type of media do you think fits
best with this statement?
Base Spanish and all European users
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Web 2.0 Driving Next Wave of Internet Usage

• Social Networking and establishing personal
  connections looks set to drive the next wave of
  internet growth
• Forum, VoIP and Instant Messaging all saw
  significant increases since 2005 as the internet
  becomes a more ingrained point of Europeans
  lifestyles, with significant growth in Spain
• Social Networking sites such as Spaces, MySpace
  and Bebo included in Mediascope for the first
  time are being used at least once a month by 23
  of online Europeans they are used by 21 of
  online Spanish
• Significant growth is also observed in top
  website genres including email, technology sites,
  news and local information

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Interactive Web 2.0 Sites Drive Usage
Q7b. Which of the following types of web
activities do you do at least once a month?

• Social Networking websites used at least once a
  month by 23 of online Europeans

Base All European internet users
30
Using the Internet to Make Telephone Calls Shows
Significant Growth in Spain
Q7b. Which of the following types of web
activities do you do at least once a month?

• 21 of internet users in Spain use social
  networking websites at least once a month

Base All Spanish internet users
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Spanish Internet Users Use Instant Messenger and
Download Music, TV Films More Than the Average
European
Q7b. Which of the following types of web
activities do you do at least once a month?
Base Spanish and all European internet users
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In Spain Use of Local Information, music and Film
Websites Has Increased Significantly Since 2005
Q7a. Which of the following types of websites do
you visit at least once a month?
Base All Belgian internet users
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Music, Sport and Film Websites are Significantly
More Popular in Spain
Q7a. Which of the following types of websites do
you visit at least once a month?
Base Belgian and all European internet users
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Key Findings

• 54 of all Europeans use the internet during the
  week, 48 in Spain (23 year on year)
• 45 of all European internet users go online
  every day of the week, rising to 51 in Spain
• Europeans now spend over 11 hours per week online
  with Spain spending 12.1 hours online per week,
  well above the European average
• Broadband penetration is up 14 across Europe
  year-on-year (75), 71 of Spanish internet users
  use broadband at their main point of internet
  connection
• 70 of Europeans spend the majority of their time
  online for personal reasons, less so for work.
• Consumer confidence towards the internet is high
  with nearly half of Europeans choosing the
  internet as their preferred media to find what
  they want quickly, in Spain 44 of respondents
  find that the internet has what they want when
  they want it
• Social Networking websites are used by nearly a
  quarter of Europeans, at least once a month, 21
  of Spanish internet users already visit social
  networking websites

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ONLINE SHOPPERS
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Online Shoppers Age Profile
Base Online Shoppers in Germany, the UK and
Spain
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Online Shoppers Growing Conversion Rates

• 78 of all European internet users shop online
• European online shoppers are now buying more from
  their browsing on the internet
• Concert/Festival tickets are currently seeing the
  highest conversion rate (75)
• Travel tickets (72), books (71) and clothes
  (70) are also enjoying high conversion rates
• Increasing consumer confidence in specific retail
  sectors
• Mobile phones have seen the biggest growth in
  conversion rates year-on-year (23)
• Music downloads (16), car accessories (15)
  and home furnishings (14) also have significant
  growth rates
• Travel Tickets, holidays and books are most
  bought products online

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78 of European Internet Users Have Bought
Products/Services Online
Q16. Have you ever bought online any of the
following products/services?

• In Spain 68 of internet users shop online

European Average 78
Base All Online Shoppers
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Increasing Confidence in Purchasing Mobile Phones
and Music Downloads Online
Q15/Q16. Have you ever researched/bought online
any of the following products/services?
Top 10 Products With Biggest Growth in Conversion
Rates Year-on-Year
Base All Online Shoppers
40
Travel Tickets, holidays and books are most
bought products online across Europe
Q15/Q16/Q17. Have you ever researched/bought
online or researched bought off line any of the
following products/services?
Top 10 Products Bought Online in Europe
Base All Online Shoppers
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In Spain Online Shoppers are Likely to Buy
Convert/Festival Tickets Online
Q15/Q16/Q17. Have you ever researched/bought
online or researched bought off line any of the
following products/services?
Top 10 Products Bought Online in Spain
Base All Online Shoppers in Spain
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Music Downloads are Particularly Popular in Spain
Q15/Q16/Q17. Have you ever researched/bought
online or researched bought off line any of the
following products/services?
Base Online Shoppers in Germany, the UK and
Spain
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Out of the Top Five Bought Online Products Four
of them were more Popular with Female Online
Shoppers
Q15/Q16/Q17. Have you ever researched/bought
online or researched bought off line any of the
following products/services?
Electrical Goods are much more popular with male
online shoppers (37) than female (22)
Base All male and female Online Shoppers
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Online Shoppers Items Spend

• European Online Shoppers bought an average of 10
  items online in just six months in 2006 an
  Increase of 11 since 2005
• In Spain the number of purchases online shoppers
  make on the internet has increased 25
  year-on-year
• European online shoppers spent an average of 750
  online in a six month period in 2006
• Online shoppers in Spain spent 452 online

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UK Buys Most Items Online
Q18. In the last six months, how many purchases
would you say you have made on-line?
Base All Online Shoppers
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In Belgium and Italy Female and Male Online
Shoppers Make an Equal Number of Purchases Online
Q18. In the last six months, how many purchases
would you say you have made on-line?
Base All male and female Online Shoppers
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Online Shoppers Spend an Average of 750 Online
in Just 6 Months
Q19. In the last six months, approximately how
much money would you say you spent in total on
all your on-line purchases?
Base All Online Shoppers
48
Online Shoppers European Bargain Hunters

• Online shoppers visit significantly more Auction,
  Price Comparison and Banking and Finance websites
• Auction sites are most popular amongst online
  shoppers in Germany (62)
• Dutch online shoppers are the biggest bargain
  hunters with more than half (54) using price
  comparison websites
• 30 of Spanish online shoppers visit price
  comparison sites

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Online Shoppers Visit Significantly More,
Auction, Price Comparison and Banking and Finance
Websites
Q7a. Which of the following types of websites do
you visit at least once a month?
Base All internet users and all online shoppers
50
30 of Online Shoppers in Spain Use Price
Comparison websites
Q. Which of the following types of websites do
you visit at least once a month?
Base All Online Shoppers
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Online Shoppers Internet Usage

• Online shoppers spend nearly 12 hours online per
  week, compared to the European average of 11.
• 82 of online shoppers use the internet at the
  weekend, compared to 79 of all internet users
• Online shoppers spend less time doing numerous
  activities as a result of the internet
• 38 of online shoppers watch less TV
• Nearly three quarters of online shoppers find
  that the internet provides what they want when
  they want it

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Online Shoppers in Spain Spend Significantly More
Time Online
Q5ai Q5aiii. In a typical seven day week,
approximately how many hours do you tend to spend
using the internet?
Average Number of Hours Per Week
Base All Online Shoppers and all internet users
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Online Shoppers Spend Less Time Watching TV and
Listening to the Radio
Q5ai Q5aiii. In a typical seven day week,
approximately how many hours do you tend to spend
using the internet?
TV
Radio
Base All TV viewers in Europe and online
shoppers who watch TV
Base All internet users in Europe and all
online shoppers who use the internet
54
Online Shoppers Spend Less Time Watching TV as a
Result of the Internet
Q20b Which of the following do you less often
(not through the internet) as a result of using
the internet?
Base All European Internet users All Online
Shoppers
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Online Shoppers Use the Internet More at Weekends
Q2a/3a. On a typical weekend, can you tell me if
you?
Base All European Internet users All Online
Shoppers
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Nearly three quarters of online shoppers find
that the internet provides what they want when
they want it
Q5g. Which one type of media do you think fits
best with this statement?
Online Shoppers Using All Types of Media

Base All Online Shoppers using all media types
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Key Findings

• 78 of all European internet users have shopped
  online, 68 have in Spain
• Concert/Festival Tickets have the highest
  conversion rates
• Online shoppers confidence in buying mobile
  phones online has increased significantly
• Travel tickets are the most popular product for
  European online shoppers to buy through the
  internet, and the same for Spain
• European online shoppers spent on average 750
  online and bought 10 items online in just 6
  months, online shoppers in Spain spent 452
• Online shoppers visit more auction, price
  comparison and banking and finance sites than the
  average internet user, in Spain 30 of online
  shoppers visit Auction websites
• Online shoppers spend more time online and
  consequently spend less time doing other
  activities

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Thank you!For further information please
contact Alison FennahEuropean Interactive
Advertising Associationafennah_at_eiaa.net