Western European online ad market shows uneven growth

Date: 12/10/2009

France and Germany are relatively mature online advertising markets. In Italy and Spain, on the other hand, where Internet use is less widespread, the online ad markets are developing at a slower pace. There, television remains the overwhelmingly dominant advertising medium, slowing the pace of euros moving to the Web.

In all four countries, total media ad spending has plunged due to the recession. But online has been the most resilient performer throughout the downturn. Internet ad spending will post important gains in 2009 and regain momentum next year.

According to the Interactive Advertising Bureau Europe (IAB Europe), PricewaterhouseCoopers (PwC) and Screen Digest, paid search has proved the most popular online ad format in these tough times, while European marketers' commitment to display, classified ads and e-mail has been somewhat weaker.

The share of ad spending going online in Europe's major countries varies widely. Sources agree that the proportion is highest in the UK, where by one estimate it recently surpassed spending on television. GroupM reported that online advertising will account for 30% of all UK ad spending in 2009, compared with 14.3% in Germany and 11.4% in France. In Italy (7.5%) and Spain (10.8%) the percentage of online advertising is well below the worldwide average of 13%.

If advertisers in Spain and Italy are not already familiar with online options, they have a more difficult time using the Web to offset lower visibility in traditional media channels. Still, many advertisers are seeing healthy results from online campaigns in Spain and Italy-such as movie studios, popular music groups, sports teams and youth-oriented brands.

Source: eMarketer

WFA collates data on global ad spend and media trends to help members understand market conditions and communications investment around the world. For more information please contact [email protected]


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