AdEx: European Online Advertising reaches a landmark €30.7bn after five consecutive years of double digit growth

Advertising, Digital & Media, Studies

IAB Europe announced that online advertising grew 11.6% to a market value of €30.7bn in 2014. The AdEx Benchmark research revealed that online advertising achieved double digit growth for a fifth consecutive year.

All markets participating in the study recorded positive growth and twenty markets grew double-digit. Mobile and video ad spend continued on their strong growth curves and are now a significant proportion of display and search ad spend.

The AdEx Benchmark results highlight the importance of digital advertising for growth in Europe’s economy. We need to ensure that digital advertising enables the European digital sector to compete across the world.

Townsend Feehan,

CEO of IAB Europe

The  study splits the online ad market into 3 broad segments: Display, Search and Classifieds and Directories. Growth in these online advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.

Display advertising
outperformed other categories with a growth rate of 15.2% and the pace of Display growth further accelerated versus 2013. In 2014, the total value of the Display ad market was €10.9bn.

Search showed growth of 10.8% – and a market value of €14.7 billion. It continues to be the largest online advertising format in terms of revenue, but has recorded a deceleration in its growth rate in the last three years.

The 2014 Classifieds and Directories market grew 5.8% to €4.9bn showing growth of 5.8%. Classifieds & Directories benefitted from the improvement in the economy, but is increasingly challenged by Paid-for-search and Data-driven Display to compete for advertising budgets.

Mobile now accounts for 17.7% of the display market, with a growth rate of 72.5% compared with 2013.

Online video advertising also showed strong growth, now representing 15.1% of the display market.

The sustained double-digit growth in online advertising in the last five years demonstrates the continual evolution of the online advertising market. The two formats driving this growth in 2014 were mobile and video. The rise of mobile and video is a reflection of the investment and innovation of the online advertising industry to meet advertiser needs, not just a reaction to shifts in consumption trends

Eleni Marouli,

Senior Analyst IHS & author of the report

Our study shows that even the most mature online advertising markets in Europe sustain double digit growth, clearly indicating the economic vibrancy of the sector. This growth is primarily enabled by the proliferation of intelligent data infrastructures. Data is the growth engine behind advertising that serves as a connective tissue between consumers, media and brands.

Daniel Knapp,

Director of Advertising Research at IHS Technology & author of the research

The CEE region grew strongly as online advertising is still benefiting from the improvements in broadband infrastructure and the increase in broadband penetration in these markets, which brings more addressable audiences online. However, growth in European online advertising continues to be driven by the most mature online advertising markets in Europe. This is a direct result of investment in formats and targeting capabilities and developing data strategies in a cross-device environment.

As Europe exits the double-dip recession, advertising markets will benefit from increased optimism from brands. Provided that publishers continue to improve their offerings, online advertising spend is well-placed to be the main beneficiary of the larger advertising budgets. Mobile and video will be the primary areas of interest for these brands.

The top 10list of markets are as follows. Top 3 Individual growth markets were:

  1. Slovenia 43.1% growth
  2. Ireland 33.3%.growth
  3. Belarus 32.8%growth

Top 10 Rankings

  1. UK – €8.9bn
  2. Germany – €5.4bn
  3. France – €3.7bn
  4. Italy – €1.9bn
  5. Russia- €1.8bn
  6. Netherlands – €1.5bn
  7. Sweden – €1.0bn
  8. Spain – €0.9bn
  9. Denmark – €0.7bn
  10. Norway – €0.7bn