IAB survey reveals Europe is fastest growing online market

Online advertising in Europe grows 38% in one year.  Europe 27 should finish between 11 and 12 Billion € in 2007 closing the gap with US market (tipped at some 13-14 Billion €). IAB Europe/PWC early findings show average growth rate year on year.

The preliminary findings of the European AdEx survey (conducted by IAB Europe), the definitive guide to the size and value of the European online industry, shows that the growth of online advertising in Europe continues unabated. IAB members are seeing more companies move their advertising online, including sectors that have until now tended to stay loyal to traditional media, such as fast moving consumer goods. As online continues to grab a larger share of advertising budgets year on year, some forms of traditional media are seeing their share eroded.

The Interactive Advertising Bureau Europe (IAB Europe) has released on the 28th May 2008 the initial findings of its annual advertising expenditure survey for the year ending December 2007. Whilst some analysts are predicting that advertising on traditional media may be impacted by an economic slowdown, online advertising continues to grow apace, experiencing an average growth rate of 38% year-on-year across the three largest European advertising markets – the UK, Germany and France. The data has been compiled by IAB Europe based on information provided by the regional IAB offices around Europe and then analyzed and processed by PricewaterhouseCoopers.

The top line results for the UK, Germany and France show that:
These markets were valued at €5.6 billion euros in 2007, up from €4.08 billion in the previous year (for search and display only)
The German market experienced the highest growth rate from 2006 at 41%
Search advertising continues to account for the lion’s share of spend, at 63.5% compared to 36.5% for display

The report also shows that whilst the top three markets are by far the largest in value, their growth rates are slower compared to some of the other member countries. Spain and Italy have experienced particularly strong growth rates at over 50%.

source: IAB Belgium