ADOTAS — The Interactive Advertising Bureau Europe released the findings of its annual advertising expenditure survey.
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). According to IAB Europe, the top 10 markets in Europe account for 93% of the total value of the market. The Netherlands grew only 9%. 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%.
But, according to Eva Berg-Winters, Senior Manager at PwC who specialises in new media, 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, she expects 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.
Search remained 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. According to Alain Heureux, President and CEO of IAB Europe, 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.
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