LONDON: Online adspend is set to expand at a "significantly" slower pace in Europe from this year until 2013, posting an annual growth rate of around 9% a year, according to a study by Forrester Research.

In its report "European Online Advertising Through 2013", Forrester predicts that European internet adspend will grow by 10% in 2009 – down from a previous estimate of 14% – and will be worth €14.8 billion ($19.1bn; £12.9bn) by 2013, with search being the main driver of growth.

Display spending is set to increase by 4% in 2009, a total that rises to 10% in 2013, while online video and other types of rich media are set to take 60% of all online ad revenues by the latter date.

France, Germany and the UK, which are currently the continent's three biggest markets for online advertising, are set to further cement that position, with the medium's share of adspend set to be "significantly higher than average" in these nations.

This builds on data showing the medium is likely to grow by around 20% in the Eurozone-12 this year.

Overall, Forrester predicts the web will take a 14.8% share of adspend in Europe by 2012, up from the previous prediction of 12.6%, largely due to the impact of the recession on marketing strategies.

Nate Elliott, the analyst who authored the report, says: "Just as search's relatively high conversion rates and accountability will help it outperform other forms of online advertising in a bad market, the largely direct response nature of internet advertising generally will help it to further outperform offline ad channels during the recession."

Data sourced from Brand Republic; additional content by WARC staff