Amid a turbulent economic debt crisis, Europes online
advertising market recorded 14.5 per cent year-on-year to
top growth to a market value of €20.9 billion in 2011,
according to the AdEx Benchmark.
contrast, the overall European ad market (sans online ads)
grew at 0.8 per cent for the same time period. The report
According to the study, released at IAB Europes Interact
conference in Barcelona, one in five advertising Euros in
Europe is spent on online advertising.
leads the pack with a growth of 55.5 per cent, followed by
Serbia at 46 per cent. Norway and Romania formed the bottom
rungs at 5.5 per cent and 4.6 per cent respectively.
becomes the sixth biggest market with a value of € 1.12
billion. Together the top five markets (UK, Germany, France,
Italy and Netherlands) account for almost 67.9 per cent of
the total online advertising market, showing a marginal reduction
from 69.2 per cent in 2010.
market share of Central and Eastern Europe (CEE) markets grew
from 10.1 per cent in 2010 to 11.8 per cent last year.
Head of Advertising Research at IHS Screen Digest and author
of the research Daniel Knapp explained, Advertising
markets are in general very susceptible to changes in the
macroeconomic environment in other words, in an economy
where we have the European sovereign debt crisis, high unemployment
and cutbacks in consumer spending, we would expect advertising
spend to suffer disproportionately as it did on most media
in 2011. However, online enjoys a number of unique attributes
that have protected it from this effect.
According to Knapp, this phenomenon can be attributed to the
fact that advertisers are beginning to recognise online as
a branding medium. Also, video commands a significant and
growing share of spend and search continues to deliver sound
and measurable results. The explosion of big data
has delivered enhanced targeting capabilities, improving monetisation
of publishers inventory.
there is a long term trend for advertisers to shift ad budgets
from mature to emerging markets, which is fueling their online
economy. An expanding broadband infrastructure adds to the
attractiveness of those markets.
The ROI-centric search format enjoyed the highest growth rate
of 17.9 per cent in 2011 followed by display ad spends which
were helped by newer formats including video and mobile at
15.3 per cent.
Also, according to the study, video now accounts for 8.2 per
cent of online display. The confidence in the medium is increasing,
thanks to its ability to convey brand messages in a narrative
makes. The medium is most popular in Sweden at 9.8 per cent
but it is also gaining traction in CEE markets as 5.8 per
cent. In Germany and the UK, video market is worth €
126 million and € 117 million.
Mobile advertising registered an average growth rate of 45.6
per cent contributing one to three per cent of online display
ad spend. On the other hand, paid-search continued to grow
in double-digit at 17.9 per cent in 2011, retaining its position
as the biggest format in online advertising.
CEE region that really drove the growth of search, with Croatia,
Hungary, Poland, Russia and Slovenia all experiencing significant
increases in spends. The surge in figures is attributed to
the innovation in search from video to location-based
services, data-driven planning to cross-media campaigns with
TV in particular.
Another reason for the success of display advertising is the
evolution of big data which relies on the rich metrics received
through the online medium to plan display advertising. Using
ad exchanges, real-time bidding and algorithmic trading, advertisers
can reach both broad and niche audiences that meet their exacting
criteria. These data-driven techniques increase the cost-efficiency
of online advertising, maximising cheaper, remnant inventory
to reach consumers.