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BizReport : Advertising archives : June 04, 2010

IAB study shows European online ad spend grew in 2009

More was spent on online advertising in Europe last year than in 2008, according to a new report from the Interactive Advertising Bureau Europe, and while growth was small it was the only advertising channel to witness any increase at all.

by Helen Leggatt

The IAB's report, compiled by Screen Digest, revealed that European online ad spend grew by just 4.5% to a total of approximately $18 billion last year.

However, times have been tough and, while 2009's figures represent a significant slowdown from the 20% growth rate experienced in 2008 and 40% in 2007, it is growth nonetheless.

Online advertising accounts for almost 20% of all ad spend in Europe, according to the report, with the U.K. dedicating the most at 30%.

Paid search accounted for almost half of all online ad spending in Europe, while display ads represented nearly 31% of expenditure and classifieds and directories took a 23.3% share of the market.

"Search outperformed display last year as advertisers focused on achieving return on investment through direct response formats at the expense of brand advertising," said Vincent Létang, senior analyst at Screen Digest.

"In addition, some advertisers felt online brand advertising wasn't yet delivering the enhanced measurement standards they needed to justify further investment in digital campaigns, particularly given the recession."

Tags: ad spend, advertising budgets, Europe, online advertising, paid search

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