IAB’s AdEx: Online advertising, up 13.4% to €18.6BN for H1 2016

IAB Europe, in collaboration with IHS Markit, has released AdEx Benchmark H1 2016 study, with data revealing that online advertising went up 13.4% to €18.6bn for the first half of 2016, from €16.4bn in H1 2015 and is expected to continue double-digit growth for the full year of 2016.

The AdEx Benchmark H1 2016 study reveals that mobile was central to the growth of online advertising across all formats; mobile display grew by 61.3% and mobile search by 57.3%. Mobile display was particularly prominent in the CEE region where it experienced a growth of more than 100%. The CEE region helped to drive the overall growth with an increase of 16.2% whilst the more mature markets in Western Europe experienced a growth of 13.1%.

Display advertising growth continues to outpace paid-for-search; display grew by 18.2% and search by 13.3%. Display reached nearly €7bn in H1 2016 representing 37% of total online advertising whilst search accounts for 47%. Indeed, in Central and Eastern Europe display experienced a 27.1% growth, the highest of all formats, suggesting an improvement in targeting, formats and data strategies for brand advertising.

The recent IAB Europe Attitudes to Digital Video Advertising research shows that nearly all stakeholders are now deploying some form of digital video advertising strategy, with over 90% of advertisers, media agencies and publishers claiming that they are using the channel. It is no surprise then that video advertising experienced a growth rate of 46% reaching €1.6bn.

Townsend Feehan, CEO of IAB Europe:

The H1 2016 AdEx Benchmark study reveals that marketers are realising the potential of mobile as an important channel for brand advertising and demonstrates improvements in technology and formats.

Eleni Marouli, Principal Analyst of IHS Markit:

Strong economic growth in all the European Big 5 for the first time since 2010, underpinned the surge in online advertising in H1 2016, lifting all formats up from H1 2015. Mobile was the key driver of growth in both search and display, accounting for one in three euros spent in Europe. IHS expects mobile to continue to play a primary role in European online advertising and to maintain growth at a double-digit level for FY 2016.

Anne Goodman, Vice-Chair of the IAB Europe Board and SVP Sales Enablement, Ad Technology & Operations BBC Advertising, division of BBC Worldwide:

Online video is key to the growth of online advertising as brand advertisers look to build brand awareness and publishers to provide engaging content for their users. Video will continue to expand its share of online display advertising as inventory supply increases.

 

IAB Europe is the leading European-level industry association for the online advertising ecosystem. Its mission is to promote the development of this innovative sector by shaping the regulatory environment, investing in research and education, and developing and facilitating the uptake of business standards. Together with its members – companies and national trade associations – IAB Europe represents over 5,500 organisations. The online advertising Industry is estimated to account for over a million jobs in Europe and contribute over EUR 100 billion to European GDP, and acts as an incubator of high-end data analytics and other digital skills that can then be deployed in the wider economy.

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