digital advertising has dethroned the TV advertising in 2016 in France but the bulk of its growth has been captured by the giants Google and Facebook, has revealed the Observatory of the e-pub published on Thursday. These figures had the effect of a blow to the ecosystem of the advertising presented at the conference of presentation, which is concerned about a near-duopoly on this market. The market of digital advertising has reached 3,453 billion euros last year, an increase of 7% compared to 2015, according to the study conducted by the firm of PwC to the union governed the internet (SRI) and the Union of the companies of council and purchase media (UDECAM). The digital becomes the “first media invested on the whole of the year 2016″, with a market share of 29.6%, in front of the tv (28.1 per cent), the study found. But this growth momentum has to be done mostly for the benefit of Google and Facebook, has pointed out in this study based on esti mates since the giants of the internet do not reveal the amount of advertising investment to their advertisers.
In this context, the search market is occupied primarily by Google) and social networks (dominated by Facebook) represent 68% of the market for pub digital and, especially, receives 86% of its growth, according to PwC. In detail, the “search” progresses of 4.3%, and represents 55% of the market of digital advertising total net sales of 1,893 billion euros. The display (banners and videos) is up 14.5%, or 35% of the overall market for a net sales total of 1,204 billion euros. But if the banners and ads videos on the social networks soared from 33 per cent to 336 million euros, the advertisements placed outside of the social networks decreased by 14%, which are worried about their competitors.
The pub video triumph
pubs video on social networks, in particular, have seen their growth explode in 2016 (+351%) to € 117 million. “In 2016, the contrasts of the market of the display increases significantly, and the weight of social media has reached a level never seen,” observes Sébastien Leroyer, director at PwC, pointing to a “two-tier market”. The other levers (affiliation, price comparators, e-mailing) is experiencing a growth rate of 3.2%, or 10% of the overall market for a net revenue of 447 million euros. These developments also reflect a migration of advertising dollars to the mobile : 41% of spending on digital are now allocated to ads on mobile devices, ” notes PwC.
The programmatic majority of the display
Finally, purchases in the programmatic have become the majority (53%) in 2016 within the shopping display, at 639 million from € 423 million in 2015, an increase of +51%. In fact, here, too, the social networks generate the bulk of growth in programmatic, with 453 million to € 639 million. An increase of +62% vs the year 2015 which recorded 279 million €. Side programmatic mobile, the study accounts for 76 million euros in 2016, against 60 million a year earlier, an increase of +25%. 81% of the investments of programmatic mobile are generated by the social networks.
No duopoly in the digital economy
Sophie Poncin, the president of the SRI welcomed “the “strong vitality in the digital market,” which captures now the largest part of the investment media. But she denounced “the accentuation of the phenomenon of concentration, which creates a deep imbalance in the ecosystem.” “It makes you dizzy,” admitted the manager during the conference presentation. “We had denounced a duopoly in the world of television, there is no question that he creates a new duopoly in the” digital, ” said Jean-Luc Chétrit, the president of UDECAM. For the detailed study, it is here.
A new label : “Digital Ads trust”
In response, professionals are working on several initiatives to reassure advertisers and convince them to diversify their advertising investments. They are going to launch a “Quality Label”, which will be reserved for sites which provide guarantees to advertisers, such as good visibility of their ads, the fight against fraud and on the transparency of the audience actually reached. Called ” Digital Ad trust, repository for the profession will be drafted jointly by the EUB and the CPMA were chosen by SRI and the UDECAM, at the end of a call for tenders. The first certification should take place “before the summer”.
All, advertising and advertisers want to that the internet giants to accept that their audiences claimed to be verified by a third party and certified, while Facebook has world-wide recognized several errors in the estimates that it discloses. The French competition Authority has also launched, in may a survey of the sector of online advertising which is expected to lead this year on recommendations and possible investigations antitrust.
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