Digital adspend rises in France

14 January 2011

PARIS: Brand owners in France increased their investment in digital formats ranging from paid search to mobile advertising last year.

Trade bodies UDECAM and the Syndicat des Régies Internet and consultancy Capgemini estimated that web revenues reached €2.3bn ($3.1bn; £1.9bn) in 2010, a 9% improvement on an annual basis.

However, the pace of acceleration still trailed the 23% increase in 2008, although it beat the 6% growth of 2009.

Search enjoyed a 9% increase, hitting €960m, and display budgets rose 12%, generating €540m.

Within this, online video figures rose 2.5 times over, delivering €30m, as marketers attempted to engage the 15-24 year old demographic in particular.

Performance-based campaigns contributed 22% of the display total, growth of two percentage points from 2009, and 11 percentage points from 2008.

Affiliate marketing also rose 15%, receiving €180m as a result, but email slipped 9%, dropping to €95m.

Price comparison platforms attracted €120m, a 19% rise, while mobile increased 23% to €27m.

Smartphone penetration is forecast to hit 35% in 2011, up from 23.5% in 2010.

Local advertisers, typically interested in highly targeted campaigns, posted €870m in outlay last year, the study added.

"Twelve months after the crisis in the advertising market, these numbers are spectacular," said Sebastien Danet, president of UDECAM.

Looking forward, the report predicted internet adspend could rise by 12% in 2011, taking returns to €2.5bn.

Data sourced from Syndicat des Régies Internet; additional content by Warc staff