Google Dominates the Dutch Online Advertising Market

An online advertising revenue of one billion euros in the Netherlands is not bad -- but an estimated half of that revenue still comes from Google. Despite stagnating economic growth, and the decline in consumer confidence, Deloitte’s recent IAB Netherlands 2011 Online Ad-Spend Report showed robust health in the Dutch online advertising market, which grew last year by 12 per cent.

While the figures look good, half of sales abroad disappear, namely to Google. Search is still dominant in the online advertising market, and represents approximately half of total turnover. Dutch publishers got their turnover in 2011 particularly in display advertising (€336m). In the panel discussion following Deloitte’s presentation of the report, led by Joris van Heukelom on Digital Marketing Live!, the key question was whether Dutch publishers are not missing a lot of opportunities given the dominance of Google.

Roel Rijsewijk, director of Deloitte Online Business Innovation, comments: “Google’s 50% estimated online advertising market share is still a fairly conservative estimate because the U.S. company provides no local market figures.”

Panelists Sander ten Dam, of Sanoma, and Joris van Lierop, of FD Media, went even further -- estimating Google’s share is actually at least ten per cent higher.

Michael Steckler of Criteo predicts the search advertising market will slowly lose ground to branding and performance-based advertising as new technologies that enable advertisers to better reach a specific target will be increasingly important.

BE VIACOM and nugg.ad Join Forces to Focus on Young Target Groups

BE VIACOM, the AdSales Unit of Viacom International Media Networks Northern Europe and therefore responsible for the online marketing of entertainment brands such as MTV, VIVA and Nickelodeon, announced last week its partnership with nugg.ad, Europe’s largest targeting platform.

BE VIACOM has adopted a brand positioning strategy that aims to address the current transformation in media usage behaviour, and to seek good coverage within young target groups, by focusing on social demographics and product interest. nugg.ad’s Predictive Behavioral Targeting technology focuses on a selection of variables relating to social demographics and product interests to be used as booking criteria.

Mark Specht, Vice President Sales, BE VIACOM GSA, comments: “nugg.ad’s targeting solutions identify the best performing target group for us and our advertising customers. This significantly reduces potential wastage and therefore boosts our campaigns, ensuring a considerable increase in efficiency and much more precise targeting within the usual strong environment.”

Stephan Noller, CEO nugg.ad, adds: “We have gained a strong partner in BE VIACOM, with access to environments that are excellent in particular for target groups aged between 14 and 29. Through this partnership, BE VIACOM can take full advantage of its strengths, specifically in combination with our target group management.”

Digital Behaviour in Germany: Initiative D21’s Study “Digital Society – Six user types in comparison”

“Our children are growing up with smartphones, lessons can be taught on smartboards in school and parents are employed at digital workplaces. But is the entire German population using such modern life devices? We also wondered, how is Germany placed in the digital space compared to the rest of Europe? Life is in motion; this includes communication technologies. At last we can all be users! I see a lot of opportunity in the digital future.”
-Tim Brauckmüller, Managing Partner atene KOM GmbH, Member of the board of the Initiative D21 e. V

Since 2001, the (N)ONLINER Atlas of the Initiative D21, in co-operation with TNS Infratest, has been empirically analysing and documenting digital society in Germany. In 2009, the first edition of the “Digital Society” study was published, and for the last three years, the institution has been observing ongoing developments.

“Digital Society – Six user types in comparison” aims to classify digital society into clear and definable user types, according to infrastructure, capacity, knowledge, use-intensity, use-diversity and attitudes. These user types – from “Digital Outsider” to “Digital Avant Garde” – will be described below and compared over the last three years (2009 – 2011). The sample groups are German-speaking residents, over 14 years of age, in a household with a landline.

Figure changes between 2009 and 2011:

1. Digital Outsider:
Average age: steady 62.5
Percentage of women: down from 66% to 59%
Professional activity: steady 27%
Household income: steadily below average

2. Occasional User:
Average age: rose from 41.9 to 46.8
Percentage of women: grew from 55% to 64%
Professional activity: dropped from 56% to 53%
Household income: fell from average to slightly below average

3. Professional User:
Average age: rose from 42.2 to 47.8
Percentage of women: grew dramatically from 48% to 70%
Professional activity: dropped slightly from 85% TO 80%
Household income: steadily above average

4. Trend User:
Average age: rose slightly from 35.9 to 37.5
Percentage of women: grew from 22% to 35%
Professional activity: dropped from 65% to to 55%
Household income: steadily above average

5. Digital Professionals:
Average age: rose slightly from 36.1 to 37.2
Percentage of women: dropped from 34% to 31%
Professional activity: grew from 81% to 87%
Household income: grew from well above average to highest average household income

6. Digital Avant Garde:
Average age: rose from 30.5 to 34
Percentage of women: dropped from 40% to 28%
Professional activity: rose from 74% to 79%
Household income: grew from slightly below average to above average

The Digital outsider does have a large capacity in simple text processing and they seek expertise. Almost 40% know what an e-mail is, 35% have a PC and 34% have a printer.

The Occasional User is mainly checking e-mails, text processing and using price comparison sites, this user category has shown a general decrease over the past three years.

The Professional User represented only 7% of the population in 2011, in 2009 they were 9%. Owning laptops increased from 52% in 2009 to 60% in 2011. Conversely, broadband access decreased from 60% in 2009 to 51% in 2011. Mobile internet access via laptop reached 13.5% in 2011, in 2009 it was not even 3%.

According to this report, only approximately half of Professional Users have business internet access, however professional computer usage increased from 77.5% in 2009 to 83.3% in 2011.

The transition the Professional User group to the Trend User group shows a distinctive jump. The first three categories can be labeled “beginner”. The Trend User is much more professional than the first three groups and is claiming a larger and larger section of digital society. In 2009, 11% were categorized as Trend Users; this number grew to 21% in 2011.

Mobile internet access in general is getting much better, but due to the development of smartphones and tablets, this trend is hardly unexpected. Surprisingly, private computer usage decreased heavily from 66% in 2009 to 43% in 2011. Also, private internet usage shrank from 40% in 2009 to 32.4% in 2011. In contrast, professional usage grew in both categories. Use-diversity is pronounced in this group (e.g. upload photos, VoIP or gaming).

The percentage of Digital Professionals within the digital society over the years has remained a constant 12%. In this category, internet access in general has grown, but especially mobile internet access -- from 32% in 2009 to 65% in 2011. Macro programming saw an increase of about 20%. Private computer usage is consistently shrinking, however professional computer usage is growing.

The last group categorization is the Digital Avant Garde, which saw a slight increase of 2% 2009 to 5% in 2011. The members of this very small group are digital specialists and are very well equipped, however have seen a decrease in webcam and HiFi-devices. Internet access over the last three years shows a distinctive increase, especially via mobile laptop from 22% in 2009 to 52% in 2011. Private broadband access rose from 77% in 2009 to 95% in 2011, and business internet access decreased from 85% in 2009 to 65% in 2011.

The capacity for software installation grew from 88% to 98%; but macro programming shrank from 51% to 31%, as did putting a website online, which shrank from 62% to 46%.