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True City is an application for the iPhone that aims to unlock access to city insiders' views of sport, life and culture in London, Berlin, Paris, Milan, Amsterdam and Barcelona. More on AKQA's award winning campaign.IAB Europe releases online ad expenditure research
Annual study finds that growth slowed significantly in mature markets to under 20% as search remains the most popular online advertising format.
Thursday, 11 June 2009
The Interactive Advertising Bureau Europe (IAB Europe) has just released the findings of its annual advertising expenditure survey for the year ending December 2008. Compiled by IAB Europe then processed and analyzed by PricewaterhouseCoopers (PwC), this report is the definitive guide to the size and value of the European online advertising industry. The 2008 report contains online expenditure data for 19 markets*.
In 2008 the European online advertising market was worth €12.9 billion with a like-for-like growth rate compared to 2007 of 20%. In the US, online advertising grew 10.6% in 2008 and was worth €16.6 billion ($23.4 billion).
However whilst the pan-European figure is one of growth, it is no secret that 2008 was one of the worst years for advertising in any medium. The online sector was not immune and experienced a challenging year, particularly in the 10 most mature markets. The key difference is it did still manage growth – albeit at a lower rate.
Six of the top 10 European markets grew less than 20%
The top 10 markets in Europe account for 93% of the total value of the market. Many of these countries saw year-on-year growth rates under 20%. The Netherlands, Europe’s early adopter of online advertising grew only 9% in 2008. Other mature online markets saw similar trends, with growth slowing in France at 18.5%; the UK, Germany and Sweden at 19% and Italy at 20%. Just beating the 20% barrier, Belgium grew 21% and Denmark and Norway hit a 22% growth rate. Spain by comparison saw relatively strong growth at 26%.
Super Search
Search remains the leading format in Europe with the strongest year-on-year growth rate of 26%, accounting for 43% of online ad expenditure in the 19 countries measured and a value of €5.6bn. Classifieds are next in terms of year on year growth rates at 17.4%, 26% share of ad spend and a market value of €3.8bn. Alain Heureux, President and CEO of IAB Europe, says “In 2008 search and classifieds enjoyed the most growth of the four formats we measured. This can be partly explained by measurement and performance based marketing needs – in times of recession advertisers are more focused on proving return on investment for every Euro spent and these two formats are the most accountable in online advertising.”
Smaller markets enjoying strongest growth
The markets outside of the top 10 are currently enjoying the strongest growth. Whilst this may not be hugely surprising as they enter a growth stage whilst simultaneously the top markets mature, it does present advertisers and players in the digital arena with business opportunities in these countries. Poland has experienced a 60% growth rate to bring the market to a value of €253m and Slovenia a 77% growth rate – the market is now valued at €19.6m.
IAB Europe is able to report on three key Eastern European markets for the first time in this edition of AdEx – Croatia, Hungary and Romania offering a more complete picture of this important region.
Alain Heureux, President and CEO of IAB Europe says “Overall the picture in Europe is one of growth, but what is clear from these figures – and what will surprise no one - is that 2008 was a tough year for online advertising. The focus on search and classifieds underlines just how important making online ad spend accountable is for our industry to develop and grow, and it is why IAB Europe has been supporting research into its measurement.
In addition, we firmly believe that the industry will continue to grow through the imagination, innovation and investment of its players. To facilitate this growth, IAB Europe’s Public Affairs operation works closely with the European Commission to ensure that the interests of our members and the industry as a whole are represented effectively to legislators. It is only on this solid foundation that the digital advertising industry will continue to evolve and grow – through the good times and the more challenging ones.”
Eva Berg-Winters, Senior Manager at PwC who specialises in new media, said "2009 is set to be a difficult year for online advertising. Decline is likely in a number of mature markets and, where there is still growth, we expect it to be much lower than previously. However, online continues to outperform other media and to increase its ad market share. The post-downturn era should therefore see another growth spurt for online"
Media please contact:
Lucy Green, PR Consultant (English) Tel: +44 (0) 7817 698366, publicrelations@iabeurope.eu; lgreen@greenfieldscommunciations.com
Geraldine Gitel, PR Consultant (French/English) Tel: +44 (0) 7917 885380/00 33 6772 5050, publicrelations@iabeurope.eu; ggitel@greenfieldscommunciations.com
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Thursday, 11 June 2009
The Interactive Advertising Bureau Europe (IAB Europe) has just released the findings of its annual advertising expenditure survey for the year ending December 2008. Compiled by IAB Europe then processed and analyzed by PricewaterhouseCoopers (PwC), this report is the definitive guide to the size and value of the European online advertising industry. The 2008 report contains online expenditure data for 19 markets*.
In 2008 the European online advertising market was worth €12.9 billion with a like-for-like growth rate compared to 2007 of 20%. In the US, online advertising grew 10.6% in 2008 and was worth €16.6 billion ($23.4 billion).
However whilst the pan-European figure is one of growth, it is no secret that 2008 was one of the worst years for advertising in any medium. The online sector was not immune and experienced a challenging year, particularly in the 10 most mature markets. The key difference is it did still manage growth – albeit at a lower rate.
Six of the top 10 European markets grew less than 20%
The top 10 markets in Europe account for 93% of the total value of the market. Many of these countries saw year-on-year growth rates under 20%. The Netherlands, Europe’s early adopter of online advertising grew only 9% in 2008. Other mature online markets saw similar trends, with growth slowing in France at 18.5%; the UK, Germany and Sweden at 19% and Italy at 20%. Just beating the 20% barrier, Belgium grew 21% and Denmark and Norway hit a 22% growth rate. Spain by comparison saw relatively strong growth at 26%.
Super Search
Search remains the leading format in Europe with the strongest year-on-year growth rate of 26%, accounting for 43% of online ad expenditure in the 19 countries measured and a value of €5.6bn. Classifieds are next in terms of year on year growth rates at 17.4%, 26% share of ad spend and a market value of €3.8bn. Alain Heureux, President and CEO of IAB Europe, says “In 2008 search and classifieds enjoyed the most growth of the four formats we measured. This can be partly explained by measurement and performance based marketing needs – in times of recession advertisers are more focused on proving return on investment for every Euro spent and these two formats are the most accountable in online advertising.”
Smaller markets enjoying strongest growth
The markets outside of the top 10 are currently enjoying the strongest growth. Whilst this may not be hugely surprising as they enter a growth stage whilst simultaneously the top markets mature, it does present advertisers and players in the digital arena with business opportunities in these countries. Poland has experienced a 60% growth rate to bring the market to a value of €253m and Slovenia a 77% growth rate – the market is now valued at €19.6m.
IAB Europe is able to report on three key Eastern European markets for the first time in this edition of AdEx – Croatia, Hungary and Romania offering a more complete picture of this important region.
Alain Heureux, President and CEO of IAB Europe says “Overall the picture in Europe is one of growth, but what is clear from these figures – and what will surprise no one - is that 2008 was a tough year for online advertising. The focus on search and classifieds underlines just how important making online ad spend accountable is for our industry to develop and grow, and it is why IAB Europe has been supporting research into its measurement.
In addition, we firmly believe that the industry will continue to grow through the imagination, innovation and investment of its players. To facilitate this growth, IAB Europe’s Public Affairs operation works closely with the European Commission to ensure that the interests of our members and the industry as a whole are represented effectively to legislators. It is only on this solid foundation that the digital advertising industry will continue to evolve and grow – through the good times and the more challenging ones.”
Eva Berg-Winters, Senior Manager at PwC who specialises in new media, said "2009 is set to be a difficult year for online advertising. Decline is likely in a number of mature markets and, where there is still growth, we expect it to be much lower than previously. However, online continues to outperform other media and to increase its ad market share. The post-downturn era should therefore see another growth spurt for online"
Media please contact:
Lucy Green, PR Consultant (English) Tel: +44 (0) 7817 698366, publicrelations@iabeurope.eu; lgreen@greenfieldscommunciations.com
Geraldine Gitel, PR Consultant (French/English) Tel: +44 (0) 7917 885380/00 33 6772 5050, publicrelations@iabeurope.eu; ggitel@greenfieldscommunciations.com
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