European Online Advertising Spend to Top 11.5B Euros in ’07

December 21, 2007

This article is included in these additional categories:

Email | Europe & Middle East | Local & Directories / Small Biz

Online advertising spend in Europe in 2007 will reach 11.5 billion euros, up some 38% from 8 billion euros in 2006, according to IAB Europe’s forecast for the participating states in the IAB network (via ClickZ).

The preliminary spend figures include values for display advertising, search marketing, classifieds and directories and email marketing.

The actual figures for 2007 European online advertising spend will be released by IAB Europe in June 2008 at the Interact conference in Berlin.

Among the forecast data and analysis issued by IAB Europe:

Growth across Europe – emerging markets booming

Many emerging markets are showing signs that 2007 will be a period of dramatic growth, with increases of up to 70% in online advertising spend.

Industry growth is expected to remain strong in the mature European markets, with predicted increases of between 30% and 40% for Denmark, France, Germany and the UK.

The growth is driven by higher levels broadband penetration across the regions and increased advertiser confidence in the medium.

European market closing gap on US

In 2006, the US online advertising spend was 4.8 billion euros ahead of spend in Europe. With the US online advertising spend is expected to reach 13.6 billion euros ($20 billion) in 2007, the gap between the two markets will narrow to 2.1 billion euros.

Key trends in 2008

Every European market identified the same trends to watch in 2008: web TV, mobile internet, behavioral targeting and social media.

“The dramatic growth in the European online advertising spend market in 2007 shows that the hard work put in by the industry and the national IABs is now paying off, with large advertisers developing trust in the medium,” President of IAB Europe Alain Heureux said.

“Creative agencies, media agencies and brands are massively moving towards the digital landscape where efficiency and branding can be combined, connecting with the consumer of the 21st Century on a way as never seen before,” he added.

About the forecasts: Every national IAB has estimated the percentage increase in online advertising spend in its territory for 2007. That increase has then been applied to the value of that market given in the 2006 report. The like-for-like increase rate of 38% is a weighted average rate of increase for all the countries that participated in the 2006 study: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Spain, Slovenia, UK. The 2007 forecasts include data from the three new countries to participate in the study – Norway, Turkey and Poland – which account for 500 million euros of the forecast.

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