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Consumer Research


Online ad spend in Europe up 40 per cent in 2007

Online ad spend in Europe up 40 per cent in 2007

With some analysts predicting that advertising on traditional media may be impacted by an economic slowdown, the research shows that

Online advertising in Europe has experiencing an average growth rate of 40% year-on-year, according to the annual advertising expenditure survey from the Interactive Advertising Bureau Europe (IAB Europe).

In 2007 the European online advertising market was worth €11.2 billion, up four billion euros from €7.2 billion in 2006.

With a like-for-like growth rate of 40%, the European online advertising market shows signs of closing the gap on the US which grew 26% to a market value of €14.5 billion in the same period.

Two thirds (65% or €7.3 billion) of European online ad budgets were spent in the big three markets of the UK, Germany and France.

However some of the smaller markets in our report enjoyed very high growth rates – Greece at 91%, Spain at 55% and Slovenia at 49%.

The report also reveals the share that online advertising has of the total advertising spend in key markets.

President of IAB Europe, Alain Heureux, said, “We are well on the way to achieving the ‘10 before 10’ - that is 10 European countries where online advertising accounts for at least 10% of overall ad spend by the year 2010.

“At the end of 2007 Denmark, Germany, Netherlands, Norway, Poland Sweden and the UK had all reached this milestone.

IAB Europe/PwC have created a measure ‘Spend per user’ to illustrate the value of one Internet user to an advertiser in the different markets.

With the European average at €80.6, Norwegian advertisers spent the most at €133.2 per person, followed by the UK at €120.8 and Denmark at €109.5 in 2007 (Chart 3). In the US advertisers spent €91.9 per person in 2007.

The more mature the market, the higher the value placed on the Internet user by the advertisers.

Industry category data has been included in the report for the first time and reveals that the sectors investing the most in online advertising in 2007 were Entertainment & Leisure, Telecoms and Finance & Insurance.

In particular, advertisers from the Entertainment & Leisure sector, which spends the most money at present, have taken advantage of the interactive and social media formats on the web to promote their products and services.

Heureux concluded, “Despite a slowdown in advertising spend on some traditional media, the rise of online advertising in Europe continues unabated.

“Not only is the growth coming from some of the smaller markets which are seeing significant increases in their market value, but also from the more mature countries as companies move their advertising budgets online for the first time.”

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