European Online Advertising surpasses TV to record annual spend of €36.4bn
Lisbon, 11th May 2016 – At the 10th edition of its annual Interact conference today, IAB Europe announced that online advertising grew 13.1% to a market value of €36.4bn in 2015 surpassing the €33.3bn European TV market.
The AdEx Benchmark research – the definitive guide to the state of the European online advertising market – revealed a €30bn net addition to the online ad market in the last 10 years. All markets participating in the study recorded positive growth, a total of twenty markets grew double-digit for the second year running (three markets recording 30%+ growth, a further nine showing 20%+ growth and a further eight 10%+ growth). Mobile and video formats continue to show strong growth.
Townsend Feehan, CEO of IAB Europe, commented “These results confirm the lead position for digital advertising in the European media landscape echoing today’s digital first consumer environment. Given the ever-increasing contribution of digital advertising to the economy and its role in the delivery of digital content and services we must continue to foster European innovation and empower our businesses to compete across the globe.”
The IAB Europe AdEx Benchmark study splits the online ad market into three 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 17.4% and the pace of Display growth further accelerated versus 2014. In 2015, the total value of the Display ad market was €13.9bn.
Search showed growth of 12.6% – and a market value of €16.9 billion. It continues to be the largest online advertising format in terms of revenue, and has increased its growth in 2015 after a slight decrease in 2014.
Daniel Knapp, Director of Advertising Research at IHS Technology and author of the research said, “Over the past ten years, online advertising in Europe has morphed from an afterthought in media buying into an indispensable set of channels for reaching and engaging consumers that now trumps TV in terms of overall marketer spend. Online advertising today stands for a diversified infrastructure that caters to multiple marketing objectives from direct response to branding, as the sustained growth of both paid-for-search and video in our study demonstrates.”
Mobile and video continue to be the key growth drivers of the European online ad market and this becomes increasingly apparent when looking at the more advanced mobile economies (like the UK and Ireland) where nearly 50% of online advertising is now generated on mobile.
Mobile display now accounts for €3.5bn or 25.4% of the display market, with a growth rate of 60.5% compared with 2014. Online video advertising also showed strong growth, now representing 16.7% of the display market.
Eleni Marouli, a Principal Analyst at IHS Technology and author of the report said “It is a fitting milestone to see online overtake TV as the largest advertising medium on the tenth anniversary of the AdEx Benchmark edition. In a challenging economic environment and flat media market, online advertising has been the shining star, keeping the European advertising market afloat and again in 2015 lifting it out of decline. Mature and emerging markets alike have noted strong growth rates again this year, demonstrating that innovation in formats, data and targeting continues to attract performance and brand budgets online.”
The top 10 list of markets are as follows. Top 3 Individual growth markets were:
- Ireland 29.0% growth
- Bulgaria 22.3% growth
- Poland 21.8% growth
Top 10 Rankings
- UK – €11.8bn
- Germany – €5.8bn
- France – €4.2bn
- Italy – €2.1bn
- Netherlands- €1.6bn
- Russia – €1.5bn
- Sweden – €1.3bn
- Spain – €1.2bn
- Denmark – €0.8bn
- Switzerland – €0.8bn
The AdEx Benchmark is available for download here.
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About IAB Europe’s AdEx Benchmark
The data has been compiled by IAB Europe based on information provided by the national IAB offices around Europe. It is then processed and analyzed by IHS Technology. The report includes market size and value information for 2015 for the following markets: Austria, Belarus, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Norway, Poland, Slovenia, Romania, Russia, Spain, Slovakia, Serbia, Turkey, Sweden, Switzerland and the UK. The data represents the calendar year 2015 January- December. This is the tenth AdEx Benchmark which began in the calendar year 2006.
Display includes PC-based and mobile banners, rich media and video formats.
See further explanatory note on data below.
About IAB Europe
IAB Europe is the voice of digital business and the leading European-level industry association for the interactive advertising ecosystem. Its mission is to promote the development of this young and 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
www.staging.iabeurope.flywheelsites.com @IABEurope IAB Europe
About IHS 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 we provide a unique, independent and objective view.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
Explanatory note on IAB Europe/IHS Technology AdEx Benchmark figures
Each national IAB in Europe runs its own annual online advertising spending study and the IAB Europe AdEx Benchmark figures are based on these results. As the methodology of the studies varies country by country, IAB Europe and IHS Technology have defined methodology rules to represent the figures in such a way as to make them realistically comparable. This involves:
- Readjusting local figures to allow for harmonised representation. Readjustment rates are supplied by groups of local market experts
- Estimating/harmonising ad spend data for certain formats or segments in certain countries where local IAB studies do not include data or the definition or scope of a format is substantially different from IAB Europe standardised segments
- Where local data is collected in a currency other than Euros, the average exchange rate in 2015 has been used to convert this to Euros. To provide data for prior year growth rates, the prior year figures have also been re-calculated using a constant exchange rate in order eliminate currency effects.
- AdEx Benchmark focuses on four normalised segments: ‘Display’ (including mobile Display, rich media and video), ‘classifieds and directories’, ‘paid search’ and ‘other’ (including email but excluding email marketing).
- Figures quoted are gross figures (i.e. net invoiced value of the media, plus agency commission if any).