SOLOCAL_Registration Document_2017

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

The chart below shows the Internet’s (estimated) share of the advertizing market in billions of euros in the United Kingdom, Australia, Canada, the Netherlands and France for the years indicated.

60% 50% 46% 52%

60%

50%

40%

35%

30%

1

20%

Total French digital advertizing market size: €3,7 bn (estimate)

10%

2

0%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Netherland

Canada

UK

Australia

France

Sources: Zenith, Ad Expenditure Forecasts, December 2017; IMF, 2017. The chart below shows the estimated penetration rate and growth rate of Internet advertizing spending in the European countries mentioned between 2017 and 2020.

3

20%

4

Sweden

16%

2.0

Netherlands

Spain

12%

1.8

France

1.6

3.7

5

Norway

UK

8%

6.8

13.1

Germany

CAGR 17-20E Internet Advertizing Internet Advertizing expenditure as % of total advertizing expenditures (2017E) 20% 30% 40% 50% 60% 70% 0% 4% 2.1 Italy Denmark

6

Note: the hexagons represent the volume of total Internet advertizing spending (in billions of euros). Source: Zenith, Ad Expenditure Forecasts, December 2017.

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MARKET SEGMENTS 1.3.4

8

The Internet advertizing market can be split into three main segments by format: Display, Search, and Internet classifieds. The French advertizing market can also be segmented in accordance with the media through which a consumer is reached by an advertisement.

more effectively, with personalized creative content. Online video and social media are currently the driving forces of display advertizing, with online video advertizing in France expected to grow by an average of approximately 18% per annum between 2017 and 2020. Online video is benefiting from increased availability of high-quality content, as well as improvements in the mobile viewing experience, with ever-improving displays and faster connections. For many consumers, checking their mobile devices for social media has become a regular, ingrained habit, while social media ads blend seamlessly into their mobile app newsfeeds. They are not mutually exclusive categories: online video ads have become a key component of the revenues for social media platforms.

SEGMENTATION BY FORMAT

Display

Display is the fastest-growing segment. It includes banners, online videos and social media promotions. All three categories within Display have benefited from the transition to programmatic buying, which allows agencies to target audiences more efficiently and

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2017 Registration Document SOLOCAL