MILAN: Digital advertising expenditure in Europe has doubled over the past five years, according to new data from IAB Europe, whose CEO has warned that the industry is at a crossroads.
The annual AdEx Benchmark study, released yesterday at the IAB Europe Interact conference in Milan, showed digital advertising grew 13.2% in 2017 to €48bn, with 20 of the 27 markets covered growing in double-digits.
The UK (€15.6bn), Germany (€6.6bn) and France (€5.1bn) were the largest markets but the fastest growing ones were all in central and eastern Europe, including Belarus (+33.9%), Serbia (+23.7%) and Russia (+21.9%) – the last of these now the fourth largest market overall at €3.3bn.
There was also strong growth in the most mature markets (in line with or above the European average) such as the UK (14.3%), Norway (16.6%), Sweden (18.4%), Switzerland (12.5%) and Denmark (9.7%) – evidence that maturity doesn’t hinder opportunity for further innovation and growth, the study noted.
Mobile dominated with double-digit growth in all 27 markets in the study. Mobile display grew by more than 40% and now accounts for 42% of total display advertising whilst video now accounts for more than a quarter of total display.
Social grew at a similar rate at 38% and increased its share of display whilst video grew by four times the rate of non-video display at 35%. The growth in video is being driven by out-stream advertising which experienced a 73.4% growth compared with in-stream at 6.9%.
The AdEx Benchmark study divides the digital ad market into three categories – Display, Search and Classifieds and Directories – and reported that growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed search and classifieds with a growth rate of 14.9% to a value of €19.3bn. Search, however, was still the largest online advertising category in terms of revenue with a growth of 14.4% and a market value of €21.9bn.
The industry can celebrate more than a decade of uninterrupted growth, but Townsend Feehan, CEO of IAB Europe, sounded a warning.
“With GDPR coming into force in just three days’ time we are at a crossroads for the industry and we must continue to improve user experiences as well as highlight the contribution that digital advertising makes to the European economy.”
The annual AdEx Benchmark study, released yesterday at the IAB Europe Interact conference in Milan, showed digital advertising grew 13.2% in 2017 to €48bn, with 20 of the 27 markets covered growing in double-digits.
The UK (€15.6bn), Germany (€6.6bn) and France (€5.1bn) were the largest markets but the fastest growing ones were all in central and eastern Europe, including Belarus (+33.9%), Serbia (+23.7%) and Russia (+21.9%) – the last of these now the fourth largest market overall at €3.3bn.
There was also strong growth in the most mature markets (in line with or above the European average) such as the UK (14.3%), Norway (16.6%), Sweden (18.4%), Switzerland (12.5%) and Denmark (9.7%) – evidence that maturity doesn’t hinder opportunity for further innovation and growth, the study noted.
Mobile dominated with double-digit growth in all 27 markets in the study. Mobile display grew by more than 40% and now accounts for 42% of total display advertising whilst video now accounts for more than a quarter of total display.
Social grew at a similar rate at 38% and increased its share of display whilst video grew by four times the rate of non-video display at 35%. The growth in video is being driven by out-stream advertising which experienced a 73.4% growth compared with in-stream at 6.9%.
The AdEx Benchmark study divides the digital ad market into three categories – Display, Search and Classifieds and Directories – and reported that growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed search and classifieds with a growth rate of 14.9% to a value of €19.3bn. Search, however, was still the largest online advertising category in terms of revenue with a growth of 14.4% and a market value of €21.9bn.
The industry can celebrate more than a decade of uninterrupted growth, but Townsend Feehan, CEO of IAB Europe, sounded a warning.
“With GDPR coming into force in just three days’ time we are at a crossroads for the industry and we must continue to improve user experiences as well as highlight the contribution that digital advertising makes to the European economy.”
Sourced from IAB Europe; additional content by WARC staff
