Online European ad spend up 40%, gets closer to the US
Published: 05 Jun 2008
The online advertising market in Europe was worth €11.2bn (£8.9bn) in 2007, according to a report from the Interactive Advertising Bureau (IAB) Europe.
The ad spend increased by 40% (up by €4 billion on 2006's €7.2 billion). The report was compiled by IAB Europe and was processed and analysed by PricewaterhouseCoopers.
Significantly, the report reveals that the European online advertising market is showing signs of closing the gap on the US, which saw a 26% rise in online ad spend last year to a market value of €14.5 billion in the same period.
The latest report indicated that 65% of European online ad budgets were spent in the big three markets of the UK, France and Germany. However, some of the smaller markets also experienced very high growth rates, Greece at 91%, Spain at 55% and Slovenia at 49%.
Alain Heureux, President, IAB Europe 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."
He added, "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."
The 2007 European average was €80.60, but Norwegian advertisers spent the most (€133.20 per person), followed by the UK (€120.80) and Denmark (€109.50). In the US advertisers spent an average of €91.9 per person.
"The development of the more mature markets in Europe is a sign of increasing investment from a wider range of advertisers than ever before," said Nicki Lynas, senior manager at PricewaterhouseCoopers.
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