Online ad revenues to rise in France

14 July 2010

PARIS: Internet adspend will continue to rise in France in 2010 and 2011, with search and online video among the main contributors to this trend.

The Syndicat Des Régies Internet and Udecam, the industry bodies, partnered with Capgemini, the consultancy, to assess the prospects for the French new media sector going forward.

Overall, they predicted that web advertising expenditure in the country will climb by 8% this year and deliver a double-digit expansion next year.

This will build on the uptick of 8% recorded in the first half of 2010, when category ad sales reached €1.14bn ($1.4bn; £955m).

Paid search took over a third of all revenues, with display on €260m, boosted by the fact that brand owners heightened their investment in online video by 170%.

Mobile posted an improvement of 30%, albeit from a low base, and the arrival of devices such as Apple's iPad could further stimulate demand in this area.

Internet gaming is another market that is gaining ground, and should see returns come in at 50m in 2010.

More than two-thirds of the biggest advertisers in France have now established a page on Facebook, with an average of 10,000 fans, the study added.

"There is renewed optimism, with very important signals like the growth of video," said Jérôme Bourgeais, vp, telecom, media and entertainment, at Capgemini, before adding a note of warning.

"Display is very sensitive to economic fluctuations and, generally, there are uncertainties about the climate in the autumn."

Data sourced from Reuters; additional content by Warc staff