Single-digit growth will be the norm through 2014
Western Europe accounts for 27.7% of global online ad spending in 2010, worth $17.1 billion, eMarketer estimates. In 2014, regional spending will rise to $24.3 billion. Annual growth rates will be healthy, but with the exception of 2012—the year the Olympic Games will be held in London—increases will fall in the single digits.
“The recovery is fragile, but 2010 has brought renewed financial growth and a degree of optimism,” said Karin von Abrams, eMarketer senior analyst and author of the new report “Western Europe Online Ad Spending: Leading the Recovery.” “Digital channels, which helped advertisers weather the worst of the crisis, will benefit further as budgets gradually expand.”
Italy and Spain still lag behind France and Germany in the share of advertising going to the web. And while these less developed online markets are now growing more quickly, they are unlikely to ever completely mirror more advanced countries.
eMarketer estimates that online ad spending in France, one of the strongest European markets, will reach €1.92 billion ($2.69 billion) in 2010, and approach €2.61 billion ($3.65 billion) in 2014. Estimates of spending and growth in the country vary markedly.
“These variations imply lingering doubts about how badly the French economy as a whole will be affected by imminent austerity measures, rising unemployment and minimal advances in GDP,” said von Abrams.
Estimates of online ad spending growth in Germany are similar but somewhat more optimistic. Steady growth is also expected in Italy and Spain, but from a smaller base.
The full report, “Western Europe Online Ad Spending: Leading the Recovery,” also answers these key questions:
- What proportion of total ad spending is going to the internet in France, Germany, Italy and Spain?
- How fast will online ad spending grow in Europe’s major markets between 2010 and 2014?
- What are the key similarities and differences between these four national markets?
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Check out today’s other article, “Web-Enabled TVs Leading Home Viewing Revolution.”