1.  IAB Ireland PwC Online Adspend Study Full Year 2012 Suzanne McElligott CEO, IAB Ireland April 18th, 2013 In association with:

2. Agenda 1. Introduction 2. Study Methodology 3. Market Background 4. Online Adspend Results 5. Mobile Adspend Results 6. Looking ahead… 7. Questions

3. 1. Introduction  Census of all major Irish online media owners  Includes online and mobile  Information collected each half year  Analysis available by  Category (Display, Search and Classified)  Format (embedded, pre-roll / post-roll etc.)  Industry sector (FMCG, Finance, Telco etc.)

4. 2. Study Methodology  Internationally, IAB has been working with PwC since 1997 to survey the value of online adspend in Europe and North America.  In our study, 28 leading publishers participated, representing multiple websites.  13 sales houses and ad networks also participated  All data was provided to PwC on a confidential basis. The data is prepared by PwC based on the figures provided by participants, which have not been verified or audited by PwC.

5. Survey participants  AD2ONE Ireland, Adconion, Adforce, Brightroll, BSkyB, Buy and Sell, CarsIreland.ie, communicorp, Crimtan, Digitize New Media Ltd, Distilled Media, Donedeal.ie, eircom, Electric Media Sales, Entertainment.ie, Facebook *, FCR Media (Goldenpages), Flashpoint, Google *, Gradireland, Homewise, i-Believe, Independent Digital, Irishracing.com, Linkedin, Media Brokers, Microsoft Advertising, MyHome.ie, O2 Media, OnlineTradesmen.ie, Page7 Media, Pigsback, Rollercoaster.ie, RTÉ *, saongroup.com, Specific Media, TCH, The Irish Times, Ticketmaster Ireland, TradeDoubler Ireland Ltd, Trader Media Group, TV3, Twitter *, Yahoo! * Estimates

6. Study Content  Total advertising revenue is reported on a gross actual basis (including agency commission)  The figures are drawn up on the basis of actual revenues submitted by the study participants  Estimates have been included for Google and Facebook based on consultation with industry representatives.  IAB’s advisory council is comprised of Aegis Media, Core Media and Group M.

7. Digital Adspend Traditional online advertising viewed on a desktop PC or laptop, accessed via the Internet connection Only media spend reported to ensure fair comparison to other media including –Display advertising –Search –Classified Online Advertising that has been specifically tailored and served on a mobile device including tablet, accessed via 3G or wifi Only media spend reported to ensure fair comparison to other media including –Display advertising (including SMS/MMS) –Search Mobile / Tablet

8. 3. Market Background Annual Growth Rate Graph 2007 – 2012 ( issued Thurs 21.03.13) Exports performed positively in 2012 Second successive year of growth of GDP following 3 years of decline. Distribution, Transport, Software and Communications sectors were the main contributor to growth in 2012 Domestic Demand remains very weak – personal consumption down 0.9% CSO Quarterly National Accounts Quarter 4 2012 and Year 2012 (Preliminary) 2009201020112012 GDP-5.5%-0.8%1.4%0.9% GNP-8.1% 0.9%-2.553.4%

9. Consumer Confidence  Nielsen Irish consumer confidence indexed at 65 in Q4 2012, a two-point decline from Q3 2012, however an increase of five points from Q4 2011 (Nielsen) *  This is an improvement relative to a year ago, however consumer spending power remains under pressure.  Outlook on Job prospects and personal finances in Ireland is behind global average - The latest Q4 2012 survey revealed there is still a recessionary mind-set (95 percent). * Source: Nielsen Global Consumer Confidence Survey Q4 2012 – Ireland Results ‘Caution is expected in the first quarter of 2013. However if things improve, consumer confidence could rebound later on in the year. There are signs 2013 could be a turning point for the irish domestic economy, and on the back of that we may see some strong consumer spending resume.‘ Karen Mooney, Nielsen

10. Nielsen 2012 Adspend in Other Media Source: Nielsen All Media Spend Full year 2012 €794m €355m €273m €82.5m €77m €5.9m

11. Source: Alternatives Marketing Watch Survey December 2012 Business Performance 2012 vs 2010 and 2011 55% of senior marketers say their business has improved in 2012 A further 31% said it remained the same as in 2011

12. What’s driving online Adspend? Marketing Strategies 2013 Where Marketing Spend was increased % respondents increasing spend Digital80% DM / Email Marketing39% CRM38% PR33% Research31% 80% of medium / large businesses say they are increasing spend on Digital Source: Alternatives Marketing Watch Survey December 2012

13. What’s driving Online Adspend? Audience Total adult Ireland population of 3.7 million 2.6m total unique visitors in Ireland. Growth of 10% over past year. (comScore) Ireland is joint third fastest growing Market in Europe (after Italy, Russia and joint with Portugal) 19.5 average hours spent online per person per week in Ireland (comScore) Smartphone penetration in Ireland: 43% 61% access the Internet every day on their smartphone (2012 Our Mobile Planet Smartphone Research)

14. Device Share of Page Views Across Europe Source: comscore Europe Digital Future In focus 2013 Ireland, UK and Russia skewing above average for Internet access via Mobile and Tablet

15. What’s driving online adspend? Technology and Innovation  Broadband penetration in Ireland is stable at 65% EU 27: 72% (comreg key data report q4 2012)  Enthusiasm for all things Digital  44% of adults say Internet has made family life better (UPC Report)  50% of householders expect to own a tablet / iPad (UPC Report)  More choice for Brands / Innovation  Richer Ad Formats – home page takeovers, carousel, billboard, slider  Video on Demand  Mobile Opportunities

16. 4. IAB Ireland Online Adspend Full Year 2012 Gross Online Adspend (like for like growth excluding Mobile)

17. Online Revenue: 2011 vs 2012 € million 12.3% Increase On a like for like basis (Excluding Mobile)

18. Online Adspend 2009-2012 (like for like, excluding mobile) Sources: IAB PwC Adspend Studies 2009-2012 H1Full year 2009€48m€97.2m 2010€53.9m€110m 2011€64.9m€132m 2012€73.2m€148m

19. Digital Media Mix Full Year 2012 € million Breakdown by advertising format based on figures provided - based on 98.7% of the overall total. 45% 34% 20% 1%

20. Digital Media Mix Full Year 2011 € million Breakdown by advertising format based on figures provided – based on 93% of overall total. 41% 36% 19% 4%

21. Social Media Display Advertising in 2012 € 6.3m* * Based on figures submitted for Boards.ie, Linkedin Facebook, Twitter, Youtube and Industry estimates. Prepared in consultation with industry representatives. 9% Increase from €5.8m* in 2011

22. Display Breakdown 2012 € million Breakdown by advertising format based on figures provided - 100% of display. 72% 10% 4% 2%

23. Display Breakdown 2011 € million Breakdown by advertising format based on figures provided - 100% of display. 76% 9% 10% 2% 1% 2%

24. Industry Categories - Display  Top Performers in Display 2012  FMCG (15%)  Finance (12%)  Telecomms (11%)  Automobile(10%)  Retail (9%)

25. Industry Categories - Display  Top Performers in Display 2011  Telecomms (15%)  FMCG (11%)  Entertainment & Media (11%)  Finance (10%)  Auto (10%)  Retail (10%)

26. Industry Breakdown for Display 2012 Breakdown by advertising format based on figures provided – 76% of display. 3% 15% 12% 11% 10% 9% 7% 6% 4% 3% 2.5% 2%

27. Industry Breakdown for Display 2011 Breakdown by advertising format based on figures provided – 81% of display. 12% 11% 10% 7% 6% 4% 3% 2%

28. Industry Categories – Classified 2012  Top Performers in Classified 2012  Automobile (36%)  Recruitment and Property (34%)

29. Industry Categories – Classified 2011  Top Performers in Classified 2011  Recruitment and Property (35%)  Automobile (29%)

30. 5. IAB Ireland Mobile Adspend Full Year 2012 Gross Mobile Adspend

31. Mobile Adspend by type 2012 82% 18%

32. Industry Categories Mobile Display / SMS / MMS Adspend  Top Performers in Mobile Display / SMS / MMS 2012  FMCG (28%)  Retail (20%)  Alcohol (16%)  Travel (12%)  Entertainment & Media (11%)

33. Mobile Adspend by Industry Category 2012 Mobile Display / SMS / MMS 28% 20% 16% 12% 11% 4% 3% 2% 1% 0.5% 0.4% 0.3% 0.2%

34. IAB PwC Online Adspend 2012 Gross Online Adspend including Mobile Adspend for 2012:

35. 6. Looking Ahead 54% predict growth or strong growth

36. Drivers of growth in adspend  Mobile  Richer Ad formats  Video  Real time bidding Q. What do you see as being the most important in driving your company's revenue growth?

37. Barriers to growth  Economic Climate  Digital strategy not prioritised in companies  Need for further training/knowledge  Insufficient data in the Irish market  Cost to the advertiser Respondents’ view of the most significant barriers to growth

38. Next Study Next IAB PwC Study - H1 2013 November 2013

39. Questions? Many thanks to:  All of our Adspend participants  Nuala Nic Ghearailt, PwC For More go to www.iabireland.ie or email info@iabireland.iewww.iabireland.ie info@iabireland.ie