Digital Advertising continues double-digit growth fuelled by Mobile and Video, latest AdEx Benchmark Study reveals

Brussels 23 November –  IAB Europe, in collaboration with IHS Markit, has today published the AdEx Benchmark H1 2017 Study. The data reveals that online advertising grew 11.5% to €22.2bn for the first half of 2017 from €20.2bn in H1 2016.

The Study reveals that nearly all growth in online ad spend was on mobile; mobile display grew by 45.9% as desktop display shrank by 1.4%. Total mobile also outpaced all other formats with a growth rate of 41.4% to a value of €7bn, compared to search which grew by 12.8%.

Online video grew 3.2x faster than non-video display reaching €1.7bn in H1 2017 which accounts for 20% of total display spend suggesting that digital is becoming a key channel for brand advertising campaigns. The latest European Programmatic Market Sizing Report published by IAB Europe and IHS Markit demonstrates that video is also a key driver for programmatic ad spend with a 155% growth rate.

Display advertising growth continues to outpace search[1]; display grew by 13.1% and search by 12.8%. Display reached over €8bn in H1 2017 representing 37% of total online advertising whilst search accounted for 48%.  Display advertising continues to experience strong growth in Central and Eastern Europe; in H1 2017 it grew by 16% compared to 12.6% in Western Europe. Indeed, the CEE region helped to drive the overall growth with an increase of 15.9% whilst the more mature markets in Western Europe experienced a growth of 10.9%.

Townsend Feehan, CEO, IAB Europe said, “As consumers increasingly shift to mobile, the AdEx Benchmark H1 2017 Study reveals that marketers are connecting with their audiences via these devices. Marketers are also realising the potential of digital for building brands by increasing investments in online video.”

Rupert Staines, Managing Director International, RhythmOne said: Digital has played a huge role in innovating the advertising industry. This year has been one of increased confidence and investment, which we can see through the double-digit growth highlighted today. Mobile and video are instrumental in driving this change, a trend we expect to see continue across all media as the industry moves into a programmatic era.”

Guido Fambach, SVP EMEA, comScore said: “Online Video and Mobile have been driving the growth of digital advertising as advertisers and publishers are looking to better engage with their customers in the most frequently used formats and platforms. We continuously work with the industry to ensure that the measurement techniques and insights available enable everyone to stay ahead of the game, matching and surpassing the rapid growth rates in digital.” 

Daniel Knapp, Executive Director at IHS Markit said:A stable macro-economic environment in the Eurozone has fuelled advertising demand, and our data shows that political uncertainty in other countries has not impacted growth to date. The European digital advertising market has been growing in the narrow window of 13.1% and 11.5% every year since 2012, and the most recent data is again in that range. Heightened investment in digital is partly a redistribution of spend from other media, a migration from below-the-line budgets, and new advertisers. But our data also signals that the structure of the digital advertising market is changing as we enter the post-desktop age.”

The study can be downloaded here.


For more information, please contact:

Marie-Clare Puffett, IAB Europe (puffett@iabeurope.eu)

About IAB Europe

IAB Europe is the leading European-level industry association for the digital advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers and to the market, and developing and facilitating the uptake of harmonised business practices that take account of changing user expectations and enable digital brand advertising to scale in Europe.

www.staging.iabeurope.flywheelsites.com

About IHS Markit

IHS Markit is a publically owned company head-quartered in London, with over 13,000 employees based in over 30 countries throughout the world. IHS Markit offers information, analytics and expertise to organizations around the world. They depend on our insights to help them make decisions about everything from day-to-day operations to long-term investments.

IHS Markit proposes to approach this research topic through the Technology, Media & Telecom division which will lead the project and includes experts on transmission infrastructure, transmission services, media management, telecommunications networks, media and devices.

IHS Markit Technology provides support to our customers in the areas of component, industrial, commercial and consumer technology, including applications and sales channels to consumer markets in media, advertising, data, voice and mobile.

About IHS Markit Technology’s Advertising Media Intelligence Service
IHS Advertising Media Intelligence Service provides its clients with a holistic and global view of a rapidly evolving advertising and marketing landscape. Developed and maintained by a team of expert analysts, it offers accurate, continuously updated market data, forecasts and reports that give our clients deep perspective on a dynamic advertising market. As the only global product that offers the same detail and scope for both established and emerging media, IHS provides a unique, independent and objective view.

www.technology.ihs.com


1 Paid-for-search

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