Online Adspends

Types of Internet advertising used

Internet display advertising: Banner advertising in standard (banners, skyscrapers, leaderboards...) and non-standard formats (overlays, interstitials) and video banners. Now the display advertising also includes content network and RTB.

Paid search advertising: Advertising appearing on specific word requests on search engines or premium positions.

Programmatic: Automated process of purchase and sale of digital advertising space. Display programmatic includes content network and RTB.

Content networks: Contextual advertising appearing on websites, using also classical banner display formats. Content networks are now included within display advertising.

PPC: This kind of advertising usually has a performance model for the payment of advertising, in which payment is made per click or actually delivered traffic, not for the number of impressions or the time interval as is the case, for example, with banner advertising or preference entries in directories. As opposed to the display advertising, its characteristic includes sale in real prices of advertising. It is used in search advertising, content networks and RTB.

Video advertising: includes In-stream video spots (pre-rolls, mid-rolls and post-rolls) appearing before, during or after a video content in the player or an overlay ad or video banners. Now the share of video advertising can be determined in all forms of display advertising.

Mobile advertising: includes advertisements displayed in the course of internet browsing via a mobile device (phones or tablets) and advertisements targeted at mobile devices in search advertising and content networks. Now the share of mobile advertising can be determined in all forms of display advertising.

RTB (real-time-bidding) is a type of business model for selling banner advertising targeted at desired audience, where each impression is delivered in real time by automatic systems as is appropriate for the required target group. In the RTB model, geographical, linguistic or behavioural targeting of advertising is often used, on the basis of previous activity and the interests of the user. The main characteristic of the RTB model is the auction sale in real prices of advertising. Now RTB advertising is included within display advertising.

Online classifieds: paid advertisements in databases of products.

Directories: directories of business records allowing for paid premium positions.

Native advertising and PR articles: Paid advertising articles placed among content articles on the media.

Methodology Description

For the purpose of surveying and processing the results, in the interest of objectivity and the protection of sensitive data, the Median agency was commissioned. The survey was conducted during January and February 2020 and was based on current closings of individual subjects. The performance of all types of advertising was based on declared performance of individual providers of content, agencies, and operators of advertising networks and mobile operators.

From 56 important internet publishers, who were addressed, 22 became actively involved; their media have impact on vast majority of Czech Internet users. In order to obtain data on the performance of individual advertising networks, three operators, 46 media, digital and specialized agencies, as well as 163 direct advertisers were addressed. One operator of an advertising network (Sklik of Seznam.cz), 19 agencies and 7 direct advertisers undertook active participation. To calculate the total advertised amount in advertising networks, the claimed performance of the Sklik advertising network is used; along with the weighted average of the percentage distribution of spending by agencies into advertising networks. Due to the historical absence of DSP system operators, DSP systems were not asked this year. Therefore, the performance of programmatic display advertising through DSP / SSP systems cannot be calculated on the whole market. For data consistency, the following corrections were made:
- Adjustment of the division of the performance of advertising networks into search and display advertising: The performance of search advertising was adjusted to the size from 2019, increased by the observed trend 2020/2019. The display part of advertising networks was created by adding to the unchanged unit of advertising networks.
- The size of advertising through DSP / SSP systems (RTB advertising) was determined by the size from 2019, increased by last year's trend estimate for 2020/2019.
- The sizes of display video and native advertising were determined by the sizes from 2019, increased by last year's trend estimates for 2020/2019.

This year, search ad performance was adjusted based on an expert SPIR estimate. The size of advertising through DSP / SSP systems (RTB advertising) was determined by the size of 2018 (the sum of declared absolute performances from agencies and direct advertisers), promoted by the 2019/2018 trend of this advertising from the media side.

Data up to 2016 include partial correction of prices in the case of those internet display advertising, which are obtained in real (net net) prices, because they have no ratecard prices.

For the purpose of comparison with the volume of other advertising, which is indicated in ratecard prices, as well as other media types, the prices of programmatic forms (content networks and RTB) were increased by 15 per cent. The difference between a ratecard and real price is, undoubtedly, higher but because of insufficient support the minimal value was finally used.

For the purpose of transparency, volumes of programmatic forms of display advertising are indicated in real (net net) prices. Search advertising remains in real prices, and since it is not display advertising, the subsequent calculation is not necessary. The remaining media types use ratecard prices; estimates of real prices are not available.

The comparison of the Internet with other media types, despite all efforts, is inaccurate due to price incompatibility. There are no list prices for most online advertising forms. Only less than 30% of the stated Internet performance is declared in list prices (direct display). Another 29% is in unchanged real net net prices (search) and only the rest uses a surcharge of a minimum of + 15% (programmatic display). As such, the Internet is gradually converging only at real prices. Especially in the time of the covid, the difference between price list and real prices of other media types is increasing, so such a mutual comparison of media types is less and less telling.

Description of forms of the internet display advertising is to be found here.

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