Online advertising market continues to grow

Online advertising segments

To depict the entire online advertising market, Media Focus' advertising statistics, which include only the display advertising segment, are supplemented by expert estimates of the search engine advertising, affiliate marketing, online classifieds, and online directories segments. The following describes how the various online advertising segments can be characterized and differentiated from one another.

At classic online advertising (Display) refers to display ads, i.e., advertising spaces such as banners, skyscrapers, rectangles, or the integration of (multimedia) content from advertisers into the editorial area of the online advertising media covered. The usual forms of billing are fixed prices or prices according to the contacts (CPM) or clicks (CPC) achieved. The invoiced gross order values are integrated into the advertising print statistics. The moving image subsection specifies the video ad format (in-banner and in-stream).

With Search engine advertising are advertising options in which the advertiser pays for a position of its link on the common search engines. Usually, an auction process is used to determine who gets the best position. The billing method of search engine advertising is payment by number of clicks on the text-based links.

The segment Affiliate marketing is part of performance marketing and is billed on the basis of performance. Normally, billing is based on CPO, CPL, and in some cases CPC. The integration of advertising media takes place on a large number of websites, for example by means of display ads, text links, product feeds or special integrations. Affiliate marketing measures are usually carried out via a network and usually have a long-term orientation. The advertiser provides advertising material and remuneration as part of the "affiliate program," while the website bears the main responsibility for deciding which advertising material is delivered when, where, and how.

Under the Online classifieds market (Classifieds is the term used to describe the online classifieds business. The "Real Estate," "Auto," and "Job" sections are taken into account as the basis for the Semester Report. The online directories advertising segment comprises the paid entries of a directory search platform, such as paid additional entries, highlighting ad, logo entry.

Online trend by advertising segment

Development in absolute terms, 2009 to 2014

The online advertising market continues to grow. All advertising segments are showing growth. Even traditional online advertising, which was still slightly behind with an advertising volume of 68 million in the half-year analysis, caught up in the second half of the year and was able to slightly top the previous year's result. The greatest development continues to be seen in search engine advertising. Advertising pressure in this area increased by 42 million Swiss francs and the advertising volume rose from 250 to 292 million. The expert panel estimated the total volume of the Swiss online advertising market in 2014 at around 850 million Swiss francs.

Online trend by advertising segment

Segment mix 2014

The segment mix has hardly changed compared to the previous year and appears to be at a standstill: Only the online directories segment has gained one percentage point, while the online classifieds market (job) has lost slightly (-1%).

Growth

Growth 2006 to 2014

Overall, the growth forecasts for 2014 were slightly exceeded: The online advertising market recorded growth of 14.1 percent, overtaking the last forecast of 10.3 percent.

Forecast

Growth forecast 2014 to 2017

According to the panel of experts, the online advertising market will continue to grow in the coming years. Compared with the advertising volume in 2014, the experts predict average annual growth of 10.4 percent for the online advertising market up to the end of 2017.

Share of online advertising in the Swiss advertising market

Year 2014

The share of online includes the advertising forms display, search engine advertising and affiliate marketing. To maintain comparability, online classifieds and directories were not included for this analysis, as classifieds or directories are not included in other media groups either. In the media mix perspective, the share of online advertising in 2014 was 10 percent. This represents an increase of one percentage point over the previous year (2013: 9%).

Online advertising (display) by industry

Year 2014

The services sector has seen a significant increase in advertising print. While it invested 15.8 million advertising dollars in online advertising (display) in 2013, this figure had already risen to 24.9 million in 2014. It thus recorded growth of 9.1 million advertising print francs and climbed from fourth to second place in the industry ranking. The financial market increased by 1.3 million advertising impressions compared with the previous year (25.7 million in 2013) and, as in the previous year, took first place in the industry ranking. The average share of traditional online advertising in the media mix is 3.4% in an industry comparison.

Methodology

The data for the Display advertising segment are based on Media Focus' advertising print statistics and are product-specific, reported values (gross invoiced) from Media Focus' cooperation partners. The total volumes of the Display segment are based on an extrapolation of these values. The data for all other segments are based on expert estimates.

Experts consulted for the estimates:

- Adresult
- Affilinet
- Car4you Switzerland
- Goldbach Audience
- Goldbach Interactive
- Homegate
- Jobcloud
- Monster Worldwide Switzerland
- Netprofit
- Ringier Digital
- Search.ch
- Stailamedia
- Local.ch
- Tradedoubler
- Worldsites
- Yourposition
- Zattoo Switzerland

Cooperation partner:

- Axel Springer Switzerland
- AZ Media
- Cash Zweiplus
- Comparis
- Goldbach Audience
- Microsoft Advertising Switzerland
- NZZ Net
- Omnimedia
- Publicitas
- Ringier
- Sevenone Media
- Swisscom Bluewin
- Tamedia
- United Internet Media