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Online advertising market

Wyślij Print Pobierz added: | 2014-11-12 13:20:04
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Online advertising market

Polish online advertising market will soon see the spending on promotion on the internet exceed budgets for TV advertising, the latest survey of the segment shows. This could happen in 3-4 years, according to most advertising agencies. They back their forecasts with declarations of gradual raising of the expenditures on online advertising of customers – 78%.

The internet advertising will soon become the key promotion channel, according to a survey conducted by Praktycy.com agency for Sociomantic Labs in July 2014 among the Polish advertising agencies. As many as 92% of respondents expect it to overtake TV in a short while, according to the report. Most (28%) believe it will take place in 4 years, while 24% estimate a period of 3 years. Only 3% do not think it will happen. The results of the survey also allow to formulate other forecasts, important for the whole internet marketing sector – and they are extremely optimistic.

Internet to dominate market?

78% of ad budget managers declare the intent to raise spending on advertising on the net at the cost of other channels. Such trend is apparent not only in Poland. For example, in the US the internet advertising has already overtaken press and, based on some projections, in 2018 it will also outdistance TV segment.

“The reasons include increasing popularity of mobile devices which results in modern consumers being online around the clock. Companies are aware of that and thus begin to invest in this channel. Moreover, new forms of online promotion, such as RTB, retargeting or programmatic,  significantly increase the effectiveness of promotional activities online,” Sociomantic Labs CEE managing director Maciej Wyszynski said as cited in the statement of Praktycy.com.

High growth in 2014 and thereafter

Market moods appear to be backed by the recent forecast of consultancy PwC, which assumes expenditures on entertainment and media in Poland will be growing at the rate of 3.7% a year, i.e. at the pace similar to that recorded in the developed Western European countries.

“In the next few years, two main factors will continue to wield the biggest influence on the shape of the entertainment and media market: further digitalization and the growing importance of mobile devices. Online advertising and internet access will be the segments with the quickest growth rate, estimated at 10.7% and 9.0%, respectively,” the report reads.

Poland's media and entertainment market should be worth USD 12.6 bln in 2018, according to PwC. Internet-based segment will constitute the biggest chunk of this market at a 30% share.

“Market segments related to digital technologies will develop at the fastest pace in the coming years, especially online advertising (15.2%), internet access (7.5%) and video games (7.8%),” according to the report.

“This comes in contrast to segments related to traditional media such as press (-1.6%), paid TV (-1.2%) and radio (1.0%),” the report adds.

PwC forecasts an average 5.8% growth of Poland's ad market in 2014-2018 with the expansion driven mainly by the internet advertising growth (at the average annual rate of over 15%). In 2018, TV advertising will likely lose its current dominant position and will be replaced by online advertising, PwC projects.

Significant growth in 2014

And what about the outlook for online advertising this year? H1 brought a revival in the industry, in line with expectations. H1 growth rate is seen at several percent, preliminary estimates showed.

“Ad market enjoyed a revival in the first six months of the year, which translated to a real increase in investments. The growth is at the level of several percent. As usual, digital media – the internet – are looking good,” media house Equinox Polska CEO Jakub Potrzebowski told PAP in late July.

In turn, internet group Onet eyes a 10% growth of online ad market in Poland in the entire 2014 with video and mobile advertising expected to post the highest growth rates.

“According to our expectations and those of media houses, this year will bring a y/y rebound on the ad market. One can also expect an improvement in the growth rate of the internet advertising segment. I think that online advertising in general will rise by some 10% in 2014,” Onet CEO Robert Bednarski told PAP in mid-June.

“Video ads will doubtlessly expand at the fastest pace as they are growing at the rate of 20-30%. Given that this segment is at the start of its development path, one should expect such growth rate also in the next few years,” he added.

 

Source: Ministry of Treasury of the Republic of Poland





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