SOLOCAL_Registration Document_2017

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SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.3 Overview of the sector

THE ADVERTIZING MARKET IN FRANCE 1.3.2

The French advertizing market as a whole is expected to grow at an average of roughly 3% per annum between 2017 and 2020, reaching nearly €11.4 billion by 2020. Forecasts are underpinned by an expectation of continued economic recovery in France and increased demand for programmatic advertizing on the Internet. The Internet is the primary driver of advertizing expenditure growth in France, having overtaken TV in 2016 to become the country’s largest advertizing media. In particular, it is estimated that major accounts spent approximately €1.5 billion on digital advertizing in France in 2016. The market is projected to grow at an average rate of approximately 10% per annum between 2017 and 2020. The chart below shows the forecasted advertizing expenditure in billions of euros in France for the years indicated.

Total advertizing expenditure in France is estimated at approximately €10.5 billion in 2017. The market can be segmented by expenditure with publishers of print media (for example: newspapers, magazines, and outdoor/transport display), traditional audiovisual media (TV, radio and cinema) and the Internet. In 2017, advertizing expenditure with Internet publishers is expected to account for approximately 35.1% of total advertizing expenditure in France. The diagram below shows an estimate of the size and segmentation of advertizing spending in France in 2017.

Newspapers 6%

3% CAGR 17-20E

Magazines 9%

Internet 35%

10.3 10.5 10.8 11.1 11.4

10.1

Outdoor/transport 11%

2%

Cinema 1%

€10.5bn

6.5

6.6

6.7

6.8

7.0

7.0

Radio 7%

TV 31%

4.9

10%

4.5

4.1

3.7

3.3

3.1

Source: Zenith, Ad Expenditure Forecasts, December 2017.

2015A 2016E 2017E 2018E 2019E 2020E

Internet

non-Internet

Sources: Zenith, Ad Expenditure Forecasts, December 2017; IMF, 2017.

THE FRENCH INTERNET ADVERTIZING MARKET 1.3.3

ability to use the latest in web analytics software, which allows l advertizers to measure the exposure of their campaign and how it is perceived in real time; and ability of advertizers to engage in promotions across a variety of l formats from basic text to graphically rich, interactive advertisements. Advertizing on the Internet is expected to account for nearly 35% of total advertizing spending in France, an under-exploited market compared with other countries, making France an attractive market with significant growth potential for companies active in this area, such as SoLocal.

The Internet advertizing market is projected to grow at an average of approximately 10% per annum between 2017 and 2020, with growth driven mainly by increasing consumption of video, mobile and social media content. In addition to the underlying growth in online media, advertizers are attracted to the Internet as a promotional space, as it helps them overcome key limitations of traditional media, with benefits including: access to desired audiences that can be accurately targeted l through the selection of advertizing inventory for the campaign and additional parameters, such as the location of website visitors, demographics and length of visit;

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2017 Registration Document SOLOCAL