Online Adspend Dips – But Future Rosy, Predicts Survey

25 January 2001

Total online adspend in the three key European markets, Germany, France and the UK, fell slightly during December, according to a report published yesterday by Forrester Research.

Advertisers spent 17.3 million euro ($16.2m) on internet ads in the UK, down from 17.7m in November. In Germany, online adspend dropped from 12.8m euro to 12.6m euro, while in France – by comparison a relatively underdeveloped internet market – the figure rose slightly from 8.3m euro to 8.6m euro.

However, despite the slight downturn, Forrester predicted a buoyant year for online advertising, forecasting a 70% growth in web-oriented adspend from $620m in 2000 to $1.08 billion. “In general there is this virtuous circle going on,” explained Marc Cohen from the firm’s AdWatch group. “More people are going online, more people are getting comfortable with spending money online and more companies are getting money via online channels, so they can spend more on marketing.”

Cohen added that December had also witnessed a rise in the number of companies advertising on the web, many of which were making their internet debut.

Nevertheless, Forrester’s rosy outlook stands in contrast to more pessimistic predictions from other industry observers. Ad-dependent portal Yahoo! recently forecast less than 20% revenue growth in the coming year [WAMN:11-Jan-01].

According to Forrester, media and entertainment companies remained collectively the biggest spenders, while the consumer goods category rose to 24% of internet adspend in Germany and 25% in the UK. The top five online advertisers in each country were as follows:


(1) TooJoo (381,000 euro)
(2) Primus (354,000 euro)
(3) Deutsche Bank (281,000 euro)
(4) Commerzbank (214,000 euro)
(5) Volkswagen Audi (209,000 euro)


(1) Virgin Group (349,000 euro)
(2) British Telecom (346,000 euro)
(3) IBM (299,000 euro)
(4) Hewlett-Packard (293,000 euro)
(5) Line One (280,000 euro)


(1) Banque Nationale de Paris (194,000 euro)
(2) StepStone (143,000 euro)
(3) Hewlett-Packard (138,000 euro)
(4) (133,000 euro)
(5) E*Trade Securities (107,000 euro)

News source: Wall Street Journal