STATS: Online Advertising in Europe Surges 40%, Closing Gap with US

Online Advertising in Europe Surges 40%, Closing Gap with US

The European online advertising market was worth €11.2 billion (in ad expenditures) in 2007, up from €7.2 billion in 2006, according to (pdf) final numbers processed and analyzed byPricewaterhouseCoopers and issued by the Interactive Advertising Bureau Europe.

Online advertising underwent an average growth rate of 40% year-on-year across the 16 countries covered in the IAB Europe report.

As a result of that growth, the European online advertising market shows signs of closing the gap with the US, where online advertising grew 26% to a market value of €14.5 billion in the same period:

Two-thirds (65%, or €7.3 billion) of European online ad budgets were spent in the big three markets of the UK, Germany and France. However, some of the smaller markets recorded very high growth rates: Greece at 91%, Spain at 55% and Slovenia at 49%...

What am Internet User Is Worth to Advertisers

In terms of “spend per user,” the European average was €80.6; the metric illustrates the value of one internet user to an advertiser in the various markets.

Norwegian advertisers spent the most at €133.2 per person, followed by the UK at €120.8 and Denmark at €109.5 in 2007. In the US, advertisers spent €91.9 per person in 2007.

The more mature the market, the higher the value placed on the internet user by the advertisers.

Big Category Spenders

Industry category data has been included in the report for the first time and reveals that the sectors investing the most in online advertising in 2007 were Entertainment & Leisure, Telecoms and Finance & Insurance...