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London 1st February 2010:  IAB Europe is delighted to announce that media analyst firm Screen Digest is the new research partner for the annual advertising expenditure report, AdEx.

The AdEx Report is the definitive guide to the value of the online advertising market across Europe. Since it was first published in 2007, the report has provided actual full year booked revenues for this diverse region that includes both emerging and mature internet advertising markets. In 2009 the report included figures for search, display and classifieds in 19 markets, and in the 2010 Screen Digest will be auditing figures for 21 markets.

Screen Digest’s Head of Advertising, Vincent Letang, worked closely with IAB Europe in 2009 to prepare market analysis and forecasts to publish alongside the data to set the internet in the context of other media. In 2010 this initiative will continue, helping to show the role that internet advertising plays when combined with other media, as well as on its own.

Catherine Borrel, Head of Research at IAB Europe says “We were impressed with Screen Digest’s contribution to this important project last year and so are very pleased to be working with them again in 2010. Screen Digest has unrivalled media expertise: as well as a dedicated advertising team, there are 50 specialists across the media sector including mobile, gaming and television. In business for more than 15 years, we provide analysis and data on over 30 global media markets and have a track record in compiling similar reports for a number of European trade bodies. As the internet becomes part of the media mix, it is vital that we can not only view it on its own, but show its significant contribution when combined with other media. We are also able to look at emerging trends and share market forecasts with our members so they have a clear picture of what has happenedcombined with an understanding of where the market is going.”

Screen Digest’s Vincent Letang said ‘”IAB’s Europe’s Adex report is the most comprehensive study and we are delighted to formalise our partnership that began last year. We are excited to be working together to expand the report’s scope and market coverage.”

IAB Europe CEO and President Alain Heureux comments “IAB Europe and Screen Digest will be presenting the findings at the 2010 Interact Congress in Barcelona on 2nd June. The theme for this year’s event is online brand advertising so it will be very apt to have the final round up of data for 2009 and the forward-looking view for our delegates so we can see how and where internet advertising can contribute to brand building.”

Ends

Media please contact:

Lucy Green, PR Consultant (English) Tel: +44 (0) 7817 698366
pressrelations@iabeurope.eu; lgreen@greenfieldscommunciations.com
Geraldine Gitel, PR Consultant (French/English) Tel: +44 (0) 7917 885380/00 33 6772 5050 publicrelations@iabeurope.eu; ggitel@greenfieldscommunications.com

About IAB Europe
IAB Europe is a federation of national Interactive Advertising Bureaux (IAB) across Europe. Its mission is to promote the growth of the interactive advertising markets on behalf of its clients and national members. Supported by every major media group, advertisers, agency, portal, technology and service provider, its voice represents the interest of more than 5000 company members. IAB Europe coordinates activities across the region including public affairs, benchmarking, research, setting standards and best practices. The member countries are Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK. Our corporate members include Adobe, Alcatel-Lucent, BBC.com, CNN, comScore Europe, Ernst & Young, Fox Interactive Media, Goldbach Media Group, Google, Hi-Media-AdLink, InSites Consulting, Koan, Microsoft Europe, Netlog, News Corporation, Nugg.ad, Nielsen Online, Orange Advertising Network, Publicitas Europe, Truvo, United Internet Media, Yahoo! and Zanox.

The Interactive Advertising Bureau Europe welcomes the opportunity to respond to the European Commission DG JLS‟s consultation on the legal framework for the fundamental right to protection of personal data  

In this context it is worth noting that the revised EPD provides now a solid legal basis for the usage of browsers and similar applications as cookie-setting tools.

IAB is the voice of the online advertising sector, representing over 5,000 companies that offer a diverse range of digital products and services to consumers and businesses across the EU. Their innovations deliver significant value to European consumers and contribute to improving the European competitiveness. Our companies have an important stake in the application of existing data protection laws to current business practices, as well as the potential development of standards or regulations in this area.

The Data Protection Directive (1995/46/EC; „DPD‟) sets international standards in the field of protection of personal data and has become one starting point for data protection regulation globally while other countries or regions have followed a more risk-based regulatory approach. The free flow of data is acknowledged as a key touchstone for economic prosperity, integral to the development of innovative technologies and services.

The DPD aims to protect individuals‟ personal data while at the same time recognising the interests of businesses/commercial actors to process and transfer such data for legitimate purposes. It is worth noting, that the E-Privacy Directive (2002/58/EC; „EPD‟) is providing a framework that deals with data protection for information society services and with many of the technological issues. The recent review of the EPD updated this framework and improved it with a view towards "new technologies and globalisation"

While the current framework provides a good set of technology-neutral principles (which should be ensured in all instances), their divergent applications and at times too broad interpretations pose significant challenges to businesses and hamper Europe‟s potential to develop, innovate and market new technologies and services cost-effectively, all of which can be accomplished without undermining the shared objective of protecting personal data.

IAB is concerned that provisions of the DPD, which were designed to ensure the adequate protection of personal data in processing operations or to prevent unlawful processing, have been implemented in some countries in an excessively burdensome manner failing to take adequate consideration of legitimate business practices and the practices of data storage, processing and basic transfers, including technological realities, such as data servers and back up processes.

We support a participatory privacy and security dialogue with industry, civil society, regulators and other key stakeholders to develop and support appropriate market-driven interoperable privacy practices, trust levels and mechanisms, for example, establishing self regulatory standards that are flexible and responsive to technological developments and which compliment applicable law.

IAB identifies the challenges in the area of data protection below and highlights the following points and recommendations in this debate:

• Ensure the technological-neutrality of the DPD. This internationally accepted principle guarantees that Europe provides a good framework for innovation in a globalised world and provides an incentive for European companies to invest in cutting edge technologies.
• Role of Article 29 Working Party - Mandatory Impact Assessments for Art. 29 WP. IAB would welcome an enhanced interaction and dialogue with the Art. 29 WP on key issues. IAB believes that mandatory impact assessments for the work of Art. 29 WP would contribute to a better understanding of business processes and technological developments.
• Address lack of coherence in the application of European data protection legislation and differences in interpretation of key data protection concepts (e.g. which data are personal data, and in which contexts, and which are not). These inconsistencies pose challenges to international and cross-border business activities. In addition to this, data protection principles have been applied and interpreted at the national level in ways that are unnecessarily restrictive and excessively burdensome for legitimate businesses processing personal data. Such restrictions place European-based businesses at a significant competitive disadvantage and underestimate the globalised nature of business markets and practices.
• Adequacy framework does not take sufficiently into account today’s business reality: The current inconsistent framework for determining "adequacy" inadequately addresses today‟ technological processes which see simultaneous transfers and back-up of data through standard IT processes and systems.
• Improve understanding of ICT: Application and interpretation of data protection legislation requires a thorough understanding of technology and business processes; currently, application and interpretation of the law could be seen as too legalistic and contradictory. Enhanced understanding of technology and an open exchange with industry could help to better understand business processes.

IAB believes that the current legislative framework provides a good basis to deal with the challenges that are posed by technological developments and globalisation. However the European Commission should address the challenges outlined in this response to enhance the implementation of the DPD.

The DPD is written in a way that allows regulators and legislators to interpret consistently the rules with regard to new technologies, and to apply them accordingly. It is based on a set of technology-neutral data protection principles in order to determine conditions / factors for lawful processing of personal data while maintaining a high level of protection. These data protection principles are widely accepted as still being valid today. However, the inconsistency in national application, interpretation and enforcement of these principles, e.g. what constitutes personal data, has created significant challenges for business as it has led to ambiguity, complexity and incoherence. Data Protection provisions have been implemented in some national laws in ways that have been disproportionate and unclear.

The DPD is a framework directive that is not intended to contain technology-specific solutions. Technology is developing so fast that attempts to concentrate the DPD on today‟ technological developments would necessarily mean that the DPD would be out of date and redundant almost immediately. Technological neutrality of the DPD is supposed to be one of its major benefits. One consequence of technology neutrality is that regulation should not try and regulate technologies itself but rather its concrete use (the question of which data and how they are they processed and not which technology is used). However, in practice, the reality is that applications, which are based on the usage of the same type of data, but are using different technologies may be met with different data protection requirements in practice.

The differing interpretations on what do and do not constitute personal data and in which contexts, raise significant compliance issues (and consequently costs) for companies operating in the Internal Market. Where website servers are outside the European Economic Area (EEA), or where forms of "cloud computing" are used during processing, those compliance issues become more critical. In this context, the Art. 29 Working Party („rt. 29 WP‟ – in considering the use of cookies, asserts that a "user’s PC can be viewed as equipment in the sense of Article 4(1)c of Directive 95/46/EC 3 [as] it is located on the territory of a Member State [and that] the Working Party is therefore of the opinion that the national law of the Member State where this user’s personal computer is located applies". This interpretation of "equipment" means that almost every website worldwide would need to comply not only with the DPD itself but also with all Member State implementations thereof depending on where a particular user‟ PC is based. Such interpretations match better the ‟ld, fixed-line‟business, which are increasingly challenged by an interconnected mobile world, where global services are instantly available on demand, wherever an individual may be.

3 http://ec.europa.eu/justice_home/fsj/privacy/docs/wpdocs/2008/wp148_en.pdf

IAB sees the fragmented implementations into national law and broad interpretations of the DPD as challenges that could be addressed.

However, IAB believes the main data protection principles meet the challenges identified and would like to emphasize and suggest the following points: 4

IAB recognizes there are challenges in trying to interpret how best the principles are applied to new technologies. Such challenges result in national implementation divergences which have a deterrent effect for attracting ICT investments. It is public knowledge that some companies have limited business operations and physical presence in the EU in order to avoid what is viewed as an unwelcoming commercial and overly complex regional DP framework. The divergence prevents the EU from leveraging the contributions of the ICT sector in its i2010 strategy and the new Digital Agenda. There is an urgent need to clarify, e.g. through European Commission Interpretative Communications, existing data protection concepts and definitions such as "personal data", "data controller", "data processor" and "consent". These remain subject to significant deviations in interpretation by Member States and increasingly appear out of date in a globally interconnected world of "digital citizens" that is based on data passing electronically across international borders.

While the Article 29 Working Party („rt. 29 WP‟ was intended to address this divergence, it has faced difficulties in bridging the 27 Member State‟ opinions. There is scope for the stakeholders together with the Commission, Article 29 WP and the national Data Protection Authorities („PAs‟ to jointly work in this area and find pragmatic solutions. One of the challenges faced by both, business and consumers is the limited technological expertise of national DPAs. IAB would welcome an enhanced interaction and dialogue with the Art. 29 WP and the DPAs to provide expertise, directly and indirectly through its member companies. Such exchange of views and explanation of business models and technology will be beneficial to bridge the lack of business processes and technological know-how. IAB welcomes the recent indication that the Art. 29 WP is moving in this direction.

In order to better understand and assess the impact and the consequences of its opinions, the Art. 29 WP should conduct mandatory Impact Assessments. Such changes could be easily implemented by the Art. 29 WP itself.

Consent may be given in different ways (explicitly and implicitly). It is important to preserve different forms of consent as suited to very different processing scenarios.

This should continue to allow for a flexible and appropriate mechanism by which individuals can provide their consent based on adequate information and notice. Requiring users to provide explicit prior consent for all processing operations is a paternalistic approach and fails to recognise technological and commercial realities. Clearly, sensitive data should be treated as a separate topic with additional safeguards.

There have been discussions that all data should be subject to the same regime as „ersonal data‟ IAB believes that the DPD should apply only to personal data. Companies process a multitude of data without any interest and/or possibility to know who individual users are (e.g. IP addresses or cookies). Extending the rules applicable to personal data to data which do not identify an individual could render the internet unworkable. 5

Unfortunately, the bipolarity of data vs. personal data has led some stakeholders to interpret data as having personal data quality in order to apply restrictions and limitations to businesses. We would like to refer to the issue of IP addresses that, in the view of the Art. 29 WP, should be treated as personal by all holders of IP addresses because in some contexts they (indeed) constitute personal data 4. Such views disregard business practices and reality. The concept of personal data should be defined following the so-called relative approach, where data are considered personal for someone (in this case for instance ISPs) who can link the data to identified individuals. Furthermore, IP addresses may be dynamically assigned – changing with each log-on of the computer or access to the internet – or one single gateway IP address may be assigned simultaneously to many thousands of customers, in the case of the use of anonymous pre-paid services. The challenges in determining whether IP addresses constitute personal data are also highlighted in the statements made in the recent UK consultation for an "Online Personal Information Code of Practice" launched by the UK Information Commissioner‟ Office, which is inconclusive as to whether IP related data are personal data, and advises that the Information Commissioner "recognises the practical difficulties, sometimes insurmountable ones, in complying with all aspects of the [law] in respect of non-obvious personal identifiers". The point is that DPAs may risk becoming overly protective in the quest to protect what may, in certain limited contexts, be deemed as personal data, and thus create unnecessary and costly barriers to legitimate activities of organisations where the use of such data in other contexts poses no risk to the privacy of individuals and where such activities are crucial to developing and delivering information society services that are increasingly important to economic growth and the success of Europe‟ knowledge based society.

4 Art. 29 WP Opinion 4/2007 on the concept of personal data, p. 16f

IAB Europe is generally supportive of requirements to notify consumers of security breaches that could lead to harm. It is important to ensure that any such requirement is carefully considered to avoid over-notification. Such over-notification could result in consumers refraining from online transactions or not paying due attention to notifications, both outcomes that undermine the legislators‟intention and consumer confidence in a growing sector in these troubled and uncertain economic times. It is important to include a threshold showing of harm: security breach notification legislation must not require subscriber notice without regard to whether there is a risk of harm. A requirement to notify should take into account the nature of the data at issue (e.g. whether they are sensitive, could be used to commit "identity theft" or cause financial loss). A breach notification regime should further provide exception for data that are technologically protected or rendered unusable. Finally, a homogenous application across Europe needs to be ensured in order to avoid create costs due to different procedures and interpretations across Europe. 6

Codes of conduct and self-regulation more generally are well suited to meet emerging and new issues: self-regulatory commitments can be revised and applied quickly and effectively. The DPD provides for a framework for codes of conduct under Art. 27. While this instrument has played a role in the creation of codes of conducts, there needs to be a landscape which allows for further forms of self-regulation. IAB believes that there should be an increased role for self-regulation to assist in the application of core data privacy principles ensuring that there is effective commitment by various industry players.

Self-regulatory measures are aimed to deliver industry commitments or, more formally, develop enforced codes of conduct, with the help of businesses and regulators, which ensure that both the letter and spirit of regulations are applied fairly and without competitive advantage across the board. Self-regulation is never entirely stand-alone. Clearly, such self-regulation can be effective only if current national divergences are first addressed.

In terms of applicable law, IAB suggests to develop a simplified framework, which is intelligible to both individuals and businesses, and which affords real and meaningful protection and regulatory recourse.

It has long been acknowledged that the current cross-border transfer of data „dequacy‟regime is not performing as intended. Vastly different national approaches, inconsistent application and cumbersome red-tape impose significant legal implementation costs and significant operational delays on well-intentioned companies.

If the European approach to safeguarding privacy principles is to be effectively and cost-efficiently applied across the EU, much greater attention needs to be paid to collaboration amongst DPAs. A one stop-shop approach needs to be put in place or enhanced for matters such as intra-company transfers of data and Binding Corporate Rules (BCRs) accreditation expanded to transfers to data processors. The European Commission should consider mutual recognition of decisions by national DPAs on the basis of the "country of origin" principle.

Consideration could be given also to either introducing a simplified notification procedure that can apply across all Member States or replace the notification procedure with a requirement on organisations to provide adequate and compliant privacy notices under the accountability principle.

At a time when companies need to closely account for their internal investment, regulators need to find innovative solutions that make achieving compliance a less costly experience.

Privacy has become a competitive differentiator, with companies designing their products to incorporate privacy functionalities. The Commission could and should support 7

* IAB Europe is registered at the European Commission Register of Interest Representatives, ID-no: 2339015958-17

companies, especially SMEs, that invest in such privacy enhancing technologies. Indeed, the Framework Programmes 6 & 7 have contributed to the creation of successful schemes and tools that find market acceptance e.g. Europrise.

IAB supports the voluntary development and deployment of PETs and voluntary certification schemes. However it would be counterproductive to make such measures mandatory and in the long run have a detrimental effect on innovation.

IAB notes that in some instances, countries have extended protection granted to "individuals" under the DPD to corporate entities. It is fundamental for a free economy to access potential business clients and be able to freely process their data such as business cards without facing the same restrictions applicable to the processing of individuals‟personal data.

Concluding, IAB believes that it is time to consider a new approach to issues related to implementation of the Directive, which is flexible and responsive to technological developments and which takes into consideration the increasingly global nature of the usage of products and services. The approach has to consider first and foremost the harm or potential for harm that processing of personal data might pose. Greater harmonisation is needed in relation to the definitions, decisions and approvals and IAB suggests the introduction of the "country of origin" approach to advance the European Single Market.

In terms of applicable law, it is vital that a simplified framework is developed, which is intelligible to both individuals and businesses, and which affords real and meaningful protection and regulatory recourse.

IAB sees a much greater role for self-regulation, and cooperation between the stakeholders in order to find solutions to specific issues arising from new communication technologies.

As outlined, IAB would recommend a participatory privacy and security dialogue between industry, the European Commission and other key stakeholders to enhance the dialogue on privacy and data protection.

* * * * *

Contact: Should you have any questions or comments, please contact Kimon Zorbas, Vice President, vp@iabeurope.eu, phone: +32 494 34 91 68.

Businesses have been aware for some time that the online advertising markets in Central and Eastern Europe are poised for explosive growth. With 38 million internet users Russia is now closing in on established Western European markets in terms of absolute numbers, and some CEE territories are already showing high growth rates of broadband penetration. However until now the lack of detailed coherent comparable information on the region has hampered many organisations' attempts to understand these markets.

IAB Europe has therefore partnered with Gemius to bring you Do you CEE? - Overview of Central and Eastern European Online Markets 2009. This 160 page report covers thirteen CEE territories in detail, providing a wealth of in depth information by country. It includes sociodemographic profiles of internet users, details of their online behaviour, lists of key industry players including social networks and search engines, as well as pan regional comparisons of key industry indicators.  

The report is available to IAB Europe members. To obtain a copy please contact Steve Miller (for corporate members) or Catherine Borrel (for national IAB members).

European publishers and the digital advertising industry are today welcoming the new provisions in the Telecom Package eliminating legal uncertainty for cookies.

The ePrivacy Directive (2002/58/EC) included in the ‘Telecom Package’ strengthens security and privacy for internet users. Crucially, the new law provides a solid legal basis for cookie management tools in browsers and other applications.

All about cookies

Cookies ensure that the internet functions effectively by storing a user’s settings, such as language preferences or authentication, shopping cart contents, and  other data used by websites, to improve and customise their content and advertising to user preferences.

The European Parliament rejected its earlier opt-in amendment for cookies that would have disrupted the internet experience of users, by requiring repeated popup  windows, or other intrusive virtual labels upon every web page visit by a user.

In its Article 5(3), the ePrivacy Directive outlines strong safeguards to protect users from unwanted software such as adware, junk, or even viruses and spyware, requiring software vendors to seek their consent. For cookies, the legislation’s preamble specifically says that the control settings in a web browser such as Firefox, Internet Explorer, Chrome, Opera or Safari are sufficient to comply with the consent requirement in the legislation. Even for cookies that cannot be controlled by web browsers, the new law recognises that the settings of specific control panels satisfy the consent requirement.

The preamble also gives greater emphasis to the need for clear and comprehensive information to users, in user-friendly ways. By providing transparent information about cookies, users will be in a position to make informed choices; for example by managing their use of cookies via browser settings. The law now clarifies that websites can rely on browser controls and similar applications to define the acceptance of cookies. Publishers and online marketers support this approach because greater transparency, user-friendly information and easy cookies-management will increase consumer trust and confidence.

“The EU legislator kept the existing opt-out regime for cookies and improved it to the benefit of Internet users. Importantly, business now has a solid legal basis to rely on the browser settings when deploying cookies. This recognises the established practice that web users set their cookie preferences in their settings managers.” said IAB Europe Vice President Kimon Zorbas. “The amendment increases consumer protection while not impeding the way the internet works. The majority of the Parliament recognized the importance of the internet and digital advertising for the future of publishing.” said Angela Mills Wade, EPC Executive Director.

Member States must transpose the Directive into national law in the next 18 months. They must do so with great care so as to avoid incorrect implementation under local law. “National legislators need to make sure that the law is transposed coherently and in a harmonized manner. If not we risk different interpretations that would create new barriers to the internal market, confuse consumers and ultimately place Europe at a competitive disadvantage to other global markets.” said Stephan Noller, CEO of nugg.ad and IAB Europe Chair of the Policy Committee.

Cookies are small pieces of text, stored on a user's computer by a web browser. They are used by almost every website and are the backbone of the modern internet as websites use a lot of embedded content and services such as widgets from third party providers. Major browsers and similar applications allow users to control cookies by specifying when and which cookies to accept and to delete. With point 66 of the new preamble in the ePrivacy directive, the legislator recognised that special rules for cookies were warranted to avoid significant disruptions of the user’s experience.

The ePrivacy Directive is part of the Telecom Package - a general review of the rules governing electronic communications. The Package provides for the establishment of a new EU Telecoms Authority, rules to spur competition in telecommunication, a review of radio spectrum management and a range of consumer protection and privacy measures.

Online advertising expenditure grew 4.6% to £1.75 billion in H1 2009, overtaking TV for the first time.

IAB UK figures show ad expenditure online up £82m to record market share of 23.5%.

In the first half of 2009 UK internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period.

According to the bi-annual online advertising expenditure study from IAB UK - the trade body for digital marketing - in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) - the internet has now overtaken TV advertising to become the UK’s single biggest advertising medium.

The UK remains the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as advertisers follow their audiences online and look to the internet for even more measureable and accountable methods.

Further information, and TV news items can be found here.

The IAB Europe AdEx Report continues to be the definitive guide to the European online advertising industry.

We believe that it is vital for us, as the interactive advertising trade body, to give the industry reliable, trusted data every year that provides a clear picture of the state of the market overall, by country and by format. We take time to collate the data we offer from across the region, using our partners, PricewaterhouseCoopers, to help ensure that the figures we publish are comparable and accurate for the 19 countries that are covered in the report. 

Thanks to our rigorous methodology and quality controls, we now have three years of comparative data so readers can see where the industry has come from and how individual markets and formats have developed. There are also comparisons with the US. 

We have new information in this edition of the report that we are sure you will find invaluable. Firstly, we are delighted to have added three key markets to the countries already being measured - that is Croatia, Hungary and Romania. Secondly, our research partner Screen Digest has provided us with their view of the market, providing forecasts from their renowned media analysts of the online advertising industry overall as well as insight into emerging formats that will make an impact on our market in the near future including video, mobile and in-game.  

The AdEx report has 38 pages of key data, and is free to IAB members, or is available to purchase for €1,500 (Euros). If you would like to obtain this valuable report, please contact Steve Miller membership@iabeurope.eu

IAB Europe is pleased to welcome new members to its Board. Following its highly successful Interact Congress last week, the trade body for the digital advertising industry is delighted to have the support of these key individuals and to announce five new corporate members.   

There were no changes to personnel on the Executive Committee. Chairman Guy Phillipson, CEO of IAB UK; Vice-Chairman  Thomas Duhr, Executive Sales Manager of United Media and Treasurer  Aude Guerin, General Secretary of IAB France all asked to serve a further year. 

The number of countries represented on the Board has grown from seven in 2008 to nine of the nineteen country members and reflects the relative maturity of their markets with the UK and Germany at tier one; Spain, Denmark, Belgium, France and Poland at tier two; Italy and Greece at tier three. 

IAB Europe is also pleased to welcome back IAB Italy, whose President Layla Pavone, Manager of Isobar Italy, brings agency expertise to the group. Corporate representation from leading industry players has increased to eight: Hi-Media, InSites Consulting and United Internet Media are joined by comScore, Google, Microsoft Advertising, News Corporation and Orange Advertising Network. 

IAB Poland’s Manager Jarek Sobolewski will champion the CEE region and he will be joined in this role by Martin Radelfinger of Goldbach Media who becomes Advisor to the Board on the CEE market.

While there were few changes to personnel, there was an increase in the number of corporate members, reflecting the need to reinforce industry representation during the current challenging economic climate.

The Interact Congress was also the backdrop for the release of the eagerly awaited 2008 figures for online advertising: the AdEx survey revealed that annual growth in the previous year had slowed significantly to under 20% across Europe, but when all forms of advertising were having one of their worst years, members were heartened that online advertising had managed to show growth, even in mature markets. 

IAB Europe is also very pleased to welcome new corporate members to the federation. They are heavy hitters Alcatel-Lucent, Google, Microsoft Advertising, Ernst&Young, News Corporation, Koan, Sonnenschein and Orange Advertising Network. 

Europe’s leading trade body for the digital and interactive marketing industry now has a dedicated team of seven staff who work together with the national IABs, corporate members and other key stakeholders to deliver out goals of promoting the growth of Europe’s interactive advertising markets, protecting the interest of the industry, regulating practices on the market and educating the players in the digital landscape.  

Alain Heureux, President and CEO of IAB Europe, says ‘Warm congratulations to all elected candidates. We have an impressive team of commercial experts and public policy specialists whose advice and guidance will be crucial. I know that this is a Board that will relish the challenge of helping to shape the future of the dynamic industry we represent. The opportunities are there for the taking if we can continue to balance vital innovation and creativity with the need to work within a legal and moral framework. 

I would also like to take this opportunity to thank everyone who supported the Interact Congress this year. We had 300 senior executives from across the globe debating the crucial issues our industry is facing. Our speakers provided inspiring and thought-provoking opinion, insights and commentary that delegates continued to discuss during the many networking opportunities.”

Annual study finds that growth slowed significantly in mature markets to under 20% as search remains the most popular online advertising format

Brussels 10th June 2009:  The Interactive Advertising Bureau Europe (IAB Europe) has just released the findings of its annual advertising expenditure survey for the year ending December 2008. Compiled by IAB Europe then processed and analyzed by PricewaterhouseCoopers (PwC), this report is the definitive guide to the size and value of the European online advertising industry. The 2008 report contains online expenditure data for 19 markets*.

In 2008 the European online advertising market was worth €12.9 billion with a like-for-like growth rate compared to 2007 of 20%. In the US, online advertising grew 10.6% in 2008 and was worth €16.6 billion ($23.4 billion). However whilst the pan-European figure is one of growth, it is no secret that 2008 was one of the worst years for advertising in any medium. The online sector was not immune and experienced a challenging year, particularly in the 10 most mature markets. The key difference is it did still manage growth – albeit at a lower rate. 

Six of the top 10 European markets grew less than 20%
The top 10 markets in Europe account for 93% of the total value of the market. Many of these countries saw year-on-year growth rates under 20%. The Netherlands, Europe’s early adopter of online advertising grew only 9% in 2008. Other mature online markets saw similar trends, with growth slowing in France at 18.5%; the UK, Germany and Sweden at 19% and Italy at 20%. Just beating the 20% barrier, Belgium grew 21% and Denmark and Norway hit a 22% growth rate. Spain by comparison saw relatively strong growth at 26%.
 
Super Search
Search remains the leading format in Europe with the strongest year-on-year growth rate of 26%, accounting for 43% of online ad expenditure in the 19 countries measured and a value of €5.6bn. Classifieds are next in terms of year on year growth rates at 17.4%, 26% share of ad spend and a market value of €3.8bn.  Alain Heureux, President and CEO of IAB Europe, says “In 2008 search and classifieds enjoyed the most growth of the four formats we measured. This can be partly explained by measurement and performance based marketing needs – in times of recession advertisers are more focused on proving return on investment for every Euro spent and these two formats are the most accountable in online advertising.”

Smaller markets enjoying strongest growth
The markets outside of the top 10 are currently enjoying the strongest growth.  Whilst this may not be hugely surprising as they enter a growth stage whilst simultaneously the top markets mature, it does present advertisers and players in the digital arena with business opportunities in these countries. Poland has experienced a 60% growth rate to bring the market to a value of €253m and Slovenia a 77% growth rate – the market is now valued at €19.6m.

IAB Europe is able to report on three key Eastern European markets for the first time in this edition of AdEx – Croatia, Hungary and Romania offering a more complete picture of this important region.
 
Alain Heureux, President and CEO of IAB Europe says “Overall the picture in Europe is one of growth, but what is clear from these figures – and what will surprise no one - is that 2008 was a tough year for online advertising. The focus on search and classifieds underlines just how important making online ad spend accountable is for our industry to develop and grow, and it is why IAB Europe has been supporting research into its measurement.

In addition, we firmly believe that the industry will continue to grow through the imagination, innovation and investment of its players. To facilitate this growth, IAB Europe’s Public Affairs operation works closely with the European Commission to ensure that the interests of our members and the industry as a whole are represented effectively to legislators. It is only on this solid foundation that the digital advertising industry will continue to evolve and grow – through the good times and the more challenging ones.”

Eva Berg-Winters, Senior Manager at PwC who specialises in new media, said "2009 is set to be a difficult year for online advertising. Decline is likely in a number of mature markets and, where there is still growth, we expect it to be much lower than previously. However, online continues to outperform other media and to increase its ad market share. The post-downturn era should therefore see another growth spurt for online"

Media please contact:

Lucy Green, PR Consultant (English) Tel: +44 (0) 7817 698366
publicrelations@iabeurope.eu; lgreen@greenfieldscommunciations.com
Geraldine Gitel, PR Consultant (French/English) Tel: +44 (0) 7917 885380/00 33 6772 5050 publicrelations@iabeurope.eu; ggitel@greenfieldscommunications.com

Ends

Note to Editors: *The data has been compiled by IAB Europe based on information provided by the regional IAB offices around Europe. It is then processed and analyzed by PricewaterhouseCoopers. The report includes market size and value information for the full membership of the IAB Europe in 2008 including Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Hungary, Italy, the Netherlands, Norway, Poland, Slovenia, Romania, Spain, Sweden, Turkey and the UK. Croatia, Hungary, and Romania were new to the research in 2008 so no comparative figures are available.

About IAB Europe
IAB Europe is a federation of national Interactive Advertising Bureaux (IAB) across Europe. Its mission is to promote the growth of the interactive advertising markets on behalf of its clients and national members. Supported by every major media group, advertisers, agency, portal, technology and service provider, its voice represents the interest of more than 5000 company members. IAB Europe coordinates activities across the region including public affairs, benchmarking, research, setting standards and best practices. The member countries are Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK. Our corporate members include Alacatel-Lucent, BBC.com, BusinessWeek, comScore Europe, Goldbach Media Group, Google, Hi-Media, Insites Consulting, Koan, Microsoft, Netlog, NewsCorp, Nielsen Online, Nugg.ad, Orange, Publicitas Europe, Sonnenschein, Truvo and United Internet Media. www.iabeurope.eu

About PricewaterhouseCoopers
PricewaterhouseCoopers provides industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across their network share their thinking, experience and solutions to develop fresh perspectives and practical advice. “PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. 

Explanatory note on IAB Europe/PwC AdEx figures: How were the figures reached?
Each national IAB runs its own annual online advertising spend benchmark study and the IAB Europe AdEx figure is based on these results. As the methodology for the studies varies country by country, the nature of this project is to represent the figures in such a way as to make them realistically comparable. This involves:
• Readjusting figures to allow for different original methodologies. Readjustment rates have been supplied by groups of local market experts
• Estimating data for certain formats in certain countries. Where local IAB studies do not include data on a given format or the definition of a format is substantially different, weighted averages for similar markets have been applied to give an estimated value for the format
• Where local data is collected in a currency other than Euros, the year-end exchange rate at 2008 has been used to convert this to Euros. To provide data for prior year growth rates, the prior year figures have also been re-calculated using the 2008 year end exchange rate in order to give transparency over the growth rate
• For France, Spain, Poland and Finland, additional information about 2007 has become available; the 2007 numbers have been updated for this
• AdEx focuses on display, classifieds, search and email. Some European countries collect data on additional formats. The related spend is not included in AdEx.

Other information about the figures:
• Figures quoted are gross figures (i.e. actual invoiced value of the media sold, including agency commission)
• All estimates and readjustments are conservative
• All estimates and readjustments have been subject to approval from local market experts and industry analysts
• We are confident that our figures provide a robust and fair representation of the European internet advertising market based on the IAB Europe network's knowledge of the market.

If you have any questions about the data in this report please contact Eva Berg-Winters at PricewaterhouseCoopers at eva.berg-winters@uk.pwc.com

BRUSSELS (30 March 2009) - The European Parliament will soon vote on an amendment to the ePrivacy Directive (2002/58/EC) that could seriously disrupt Internet usage by European citizens. No need has been proven for specific legislation that would alter current law. IAB Europe therefore urges legislators not to adopt this Amendment.

“This amendment, if adopted, risks changing the way the Internet works today,” said IAB Europe Vice President Kimon Zorbas. Users could be faced with repeated pop-up windows or other annoying virtual labels every time they visit a web page, slowing the provision of Internet services and diminishing the user experience. The information provided in the types of notices proposed can typically be found in website privacy policies, which are already required by law".

The amendment on cookies being championed by MEP Alexander Alvaro (FDP/ALDE) (Amendment 84) would adversely impact Internet functionality and usage. The proposal would require both Internet businesses and non-commercial websites to provide a special notification when a cookie is placed.  Cookies are essential for the smooth working of the Internet and provide an enhanced user experience. For example, they are used for authentication purposes, to help remember usernames, passwords, and language choices, as well as to personalize content. 

Rather than increasing data protection, this amendment will impede the way the Internet works and force companies to reengineer their technologies.  “The responsible Rapporteur, MEP Alexander Alvaro (FDP/ALDE), has not provided any evidence that there are problems with the way cookies function today,” said Zorbas. In addition, Mr. Alvaro is disregarding the fact that today’s technologies provide users with the means to manage cookies through refusal, defined acceptance, and deletion of cookies.

The Interactive Advertising Bureau Europe (IAB Europe) (www.iabeurope.eu) is the voice of the online advertising sector through its 23 national IAB associations representing more than 5,000 company members, as well as corporate members including Axel Springer, Alcatel-Lucent, BBC.com. Business Week, comScore Europe, Goldbach Media, Google, Hi-Media, Insites Consulting, Netlog, Nielsen Online, Nugg.ad, Publicitas Europe, Truvo and United Internet Media. Supported by every major media group, agency, portal, technology and service provider, IAB Europe coordinates activities across the region including public affairs, benchmarking, research, standards settings, and best practices.    

Should you have any questions or comments, please email or call Alain Heureux, President, president@iabeurope.eu, phone: +32 495 22 51 35 or Kimon Zorbas, Vice President, vp@iabeurope.eu, phone: +32 494 34 91 68.

IAB Europe held its second successful Research Showcase on 16^th March in Brussels. Thirty senior executives from leading industry players including mobile operators, advertising agencies, technology providers, analysts and research companies attended and went away with plenty of pointers to future directions for this exciting new platform in digital advertising. 

Bruce Hoang, International Research Director at Orange opened the event with the findings from their own research project, Exposure, into consumer mobile media consumption and attitudes to advertising.  The objective of the study was to understand what people were doing on their mobile phones, from emailing to downloading media files.  It found that usage could be classified by age group, with younger users up to the age of 25 the most aware of the capabilities of their phones and classified as a ‘mainstream’ device, 25-45 year olds being ‘selective’ in the functions they use, whilst the over 45s were termed ‘tentative’ customers, using the mobile web for instance only very rarely. Orange asked respondents what they thought of advertising formats on their mobile phones. Banners ads were accepted, but there were concerns about what happens when you click on a banner ad on a mobile. Sponsorship was acceptable, but only if ads were of good quality and no longer than 12 seconds. There was a high level of interest in location based advertising, especially if customised to the owner, but reluctance amongst respondents to complete questionnaires listing their interests. Respondents really liked the idea of idle screen advertising on their phone displays on the understanding that it wouldn’t interrupt their activities. In summary, unsolicited advertising is definitely out – the mobile is a personal device and not suited to this type of promotion whereas targeted, relevant ads based on preferences of individuals are the most acceptable forms of mobile advertising.  

Hervé le Jouan, Managing Director of comScore M:Metrics shared data from their MobiLens product covering the five main markets in Europe showing how consumers are using their phones by age and gender.  The research reveals that owners of iPhones are more active users of all applications on their mobile – including browsing for news, listening to music, emailing, watching video and playing games. Brand owners will be particularly interested to know that usage tracked over time showed significant spikes in access to sports results sites through the mobile during key sports events (see chart).  Advertisers might also want to know that mobile advertising is extremely effective at reaching high earners who are ‘cash rich and time poor’ and who rely on their mobiles to manage their busy lives – automotive companies have already realised this fact and many are promoting their products through this new medium. 

Julien Theys, Mobile Analyst from Screen Digest talked about the growth of the mobile advertising industry and provided forecasts for how the market for ad supported mobile content will grow. TV will account for 81% of Europe’s mobile content ad market by 2012, with music and user generated content accounting for very small proportions of the market.  Mobile operators tend to be cautious about sharing their user data with advertisers because the trust they have with their customer base is a vital part of their business. In some cases they are looking to third parties to help them manage their ad sales to ensure their customers remain satisfied with the ads they are being served. Julien also looked at the role of operating systems in the mobile advertising environment and predicted that there won’t be one powerful OS in the industry, but rather a number of players including Blackberry and Apple using different software platforms.  

René Lamsfuß, Director of Product and Methodology at Nielsen Online showed what people are doing on mobile internet across Europe. Entertainment is popular in four of the main five European markets, with Germany being the exception where shopping is especially popular, particularly auction sites, from mobile. Social networking is the most popular in the UK and growing in France, Germany and Italy. Next generation smart phones are driving usage across Europe with Italy the market with the highest penetration at present. Compared to the US, WAP is the growth area in Europe and consumers are much more likely to download content here than to connect with the web and stream content on their mobiles. René also illustrated how Europeans are open to mobile advertising based on four statements put to them. 

Laurent Reysbosch, Commercial Manager at Mobile Trend shared case studies from mobile advertising campaigns showing how different brands in Belgium have driven leads and sales through a variety of different creative applications on the mobile. He shared the results of campaigns for brands in a variety of different sectors including Toyota, Procter & Gamble, Garnier, ING, Fiat and Coca Cola showing how integrating mobile into advertising campaigns can increase the reach and give advertisers access to new target groups.  

Tarik Fawzi Director at Aeneas Strategy Consulting & Management shared research from the Netherlands to show how mobile advertising can be used in these markets. The research encompassed the views of consumers, advertisers, market experts and mobile advertising service providers. Interviews with 1000 consumers indicated that gaining their permission, protecting their privacy, understanding their individual preferences and offering the right incentives are crucial to success.  

For more information from the presentations please see our Knowledge Bank Research Showcase - Mobile Advertising and to find out about the next Research Showcase at the Interact Congress in June on Social Media, please visit http://www.interactcongress.eu/.

Brussels, March 6th 2009: The Interactive Advertising Bureau Europe (IAB Europe) supports the .eu domian name through its network of National IABs.

EURid is the organisation appointed by the European Commission as the registry for the .eu domain name. Over 3 million .eu domain names have been registered to date, with the third millionth .eu domain name taken on 11 January 2009 by a German citizen. Two and a half years after its launch, this confirms the success of the .eu top-level internet domain. It is the fourth most popular internet domain among European country domains and the ninth worldwide.

During 2008, the .eu TLD grew by a healthy 10% or 274 000 domain names. The highest growth was in Poland (69 000), Germany (50 000), France (49 000) and the Netherlands (43 000). For more data, go to stats.eurid.eu. 

By promoting a distinctly European online identity .eu helps citizens and businesses to reap the full benefits of the single market. Multinational companies and SMEs, NGOs and think tanks as well as individual Europeans have all adopted .eu to mark their web presence.

To find out how a broad range of companies have used the .eu domain name to their advantage, click here

Brussels November 19th 2008: The Interactive Advertising Bureau Europe (IAB Europe) has just completed a survey of its Executive to get their opinions on the state of the online advertising industry as advertising budgets in every media are squeezed. The findings reveal that whilst the online advertising market may experience a small dip in 2009, there are key measures advertisers can take to protect themselves from the advertising downturn.

The survey was carried out amongst 23 National IABs and 12 corporate members from 3rd-14th November by InSites Consulting. IAB Europe is the only representative voice for the European interactive industry, representing over 5000 companies from 23 countries and so the opinions of these leading figures provides an early indication of how the market might look next year.

Rather than being worried about declining market size, our respondents see the economic downturn as an opportunity for online advertising to prove itself and come out even stronger. They believe that Internet is the ideal ‘total media’ solution for difficult economic times – allowing for PR, branding and marketing in a highly targeted way, combining creativity with opportunities for customer engagement.

Expectations for 2009
As broadband Internet speeds become the norm across Europe advertisers are increasingly grasping the opportunity to use video and multi-media applications in their online campaigns to engage with the audience. Our respondents said that the more creative the campaign, the greater the emotional response from the viewer and therefore the better the results. Respondents also underline the value of integrated campaigns and expect that social media will grow in importance.

A key challenge for the coming year will be to prove the effectiveness of online as a medium that really works. An industry standard measurement of ROI continues to evade online advertising and this is something that IAB Europe and the EIAA joint initiative, The Measurement of Interactive Audience (MIA) is working to address.

How to survive online advertising in 2009
Our Executive have shared their suggestions for the best ways to survive what everyone agrees will be a tough year for advertisers in every medium. For online advertising particularly, their advice is:

1. Plan campaigns that develop a relationship with the viewer – these tend to be the most successful
2. For cost-effectiveness and ROI, identify and focus on your target audience – and use all the behavioural targeting tools the Internet offers you to reach them
3. Use new formats, video, social media and good creative ideas to position your brand as innovative 
4. Integrate with other media where you can to get the most from your budget
5. Try, test and optimise until you get it right.

Alain Heureux, IAB Europe President and CEO says “Together the Executive team of IAB Europe have unrivalled expertise and knowledge of the online advertising industry. Our survey revealed that whilst they expect 2009 to be tough right across the advertising industry, they are totally committed to online advertising and believe it will more than hold its own next year. We’ll be sharing more guidance, best practice and insight throughout the coming months to support our members working in this dynamic and innovative industry.”

For more information please contact: IAB Europe PR Manager - Lucy Green
Tel: +44 (0) 7817 698366   publicrelations@iabeurope.eu

Brussels November 17, 2008: The Interactive Advertising Bureau Europe (IAB Europe) is delighted to welcome IAB Hungary to its expanding network. Hungary will be the 19th official member of the European network. IAB Europe’s remit is to provide interactive media with strong foundations for growth by providing research into the digital audience, lobbying parliament and commission to protect the interests of interactive marketers and setting out best practice for this rapidly evolving industry.

Alain Heureux, President and CEO of IAB Europe is excited about the addition of yet another new member: “As online advertising spend continues to grow, it’s important that IAB Europe continues to work to promote the growth of interactive marketing. The addition of IAB Hungary is an important step in ensuring we represent the interests of interactive advertisers and marketers across the entire region but especially in the emerging CEE countries.  Our aim is establish a digital embassy in each European country ensuring we can provide politics, journalists, advertisers and marketers with some products and services answering their questions, their doubts but overall offering them a door where they can knock on. 

For the CEE markets, I’m working closely with Jarek Sobolewski, General Manager of our IAB Poland and along with Slovenia and Croatia, one of the best examples in the region of an effective national IAB.  Many other CEE countries will follow Hungary’s example, ensuring we cover an extended European territory with more than 30 countries by the end of 2009.”

IAB Hungary said “We are very pleased to become part of the IAB Europe network. This is a very exciting time for us. The online advertising market in Hungary is growing faster than traditional media and with the support of IAB Europe we’ll be able to develop our interactive advertising market even further.”
 
The annual IAB Europe AdEx report predicts that online advertising spend in 2007 across their network of members will be €11.5bn, up 40% on the market value in 2006. Based on IAB Europe forecasts that value the US online advertising market at €14.5bn, the report shows that 2007 was the year that Europe started to close the gap with the US.  For 2008, the European digital industry, despite the economical recession impacting advertising, currently forecasts a 25% increase.

For more information please contact: IAB Europe PR Manager - Lucy Green
Tel: +44 (0) 7817 698366   publicrelations@iabeurope.eu

For further information click here 

Presentations from the Creative Showcase can be dowloaded here

Brussels October 21st, 2008: The Interactive Advertising Bureau Europe (IAB
Europe) is pleased to announce a newly appointed Board, to welcome new national
and corporate members and to reveal its new logo and website. Over the summer
the IAB Europe team have been working hard to launch a new, stronger trade body
that truly represents this exciting, dynamic and challenging industry.

With the addition of Norway, Turkey, Sweden, Romania and Croatia, the number of
member countries has grown to 18. We’re working closely with IABs in Switzerland,
Portugal, Ireland, Luxemburg and Hungary and expect to welcome them into the
European organisation shortly.

Our new corporate members are BBC.com, Business Week, comScore MediaMetrix,
Goldbach Media, Hi-Media, Insites Consulting, Netlog, Nielsen Online, Nugg.ad,
Truvo, Publicitas Europe and United Internet Media.

A new Board is appointed
We are delighted to announce our new Board members, elected by our General
Assembly in Dusseldorf in September. Made up of seven national IABs and five
corporate members, the Board represents the wide-ranging interests of the many
stakeholders in the European digital marketing industry. Guy Phillipson of IAB UK
was voted Chairman, Thomas Duhr of United Internet Media was elected Vice-
Chairman and Aude Guérin of IAB France becomes Treasurer. In addition, those
present at the meeting chose corporate delegates from Nielsen Online, Goldbach
Media, Insites Consulting and Hi-Media to represent them. Country members include
the UK, Germany, Spain, France, Denmark, Belgium and Greece.*

Each Board member will have their own project to manage. In addition to the
countries elected to the Board, IAB Poland was chosen to mentor and support the
development of the new IABs in Central and Eastern Europe.

IAB Europe will shortly reveal a redesigned website, with a fresh look, logo and new
content. A key part of the website will be the feedback from the work achieved in the
ongoing dialogue with the regulator, the achievements of its 5 Working groups
standardising Display, Search, Social Media, Targeting and Mobile, but also some
strong Benchmarking products like AdEx (online expenditures) and Mia (audience
measurement) and last but not least the Knowledge Bank, a source of the latest
research and analysis on the European and Global advertising market endorsed by
the local markets.

Alain Heureux, President says “Our mission is to promote, regulate, educate and
protect the digital industry. We believe that it is only through working together that
we will achieve our goals and support the growth of our exciting and challenging
industry. With 18 confirmed national members and five more countries preparing to
join us providing the industry with some 100 dedicated staff (95 in the countries and
five in the central body) and supported by more than 5000 company members, IAB
Europe is the only body that truly represents the interests of the European digital
industry towards authorities, NGO’s, press and other trade associations.

We are delighted to have three of the most experienced people in our industry as
officers and some of the best minds in the interactive industry on our Board. These
are tough times for the global advertising industry, but with our outstanding Board,
committed national and corporate members and dedicated local staff, I am confident
we have the right formula to face the challenges the next few years may bring.”