Western European Online Ad Spending Weathers Storm

France and Germany lead the way

NEW YORK (Oct. 9, 2009)—The evolution of online ad spending in France, Germany, Italy and Spain mirrors the cultural and infrastructural differences in these countries. France and Germany, like the UK, are relatively mature markets for online advertising. The Italian and Spanish markets are developing at a slower pace, chiefly because Internet use is less widespread there. Television remains the overwhelmingly dominant advertising medium in both Italy and Spain, and this too has limited Internet ad spending.

Projections by Interactive Advertising Bureau Europe, PricewaterhouseCoopers (PwC) and Screen Digest indicate that search revenues would grow most in 2009 and 2010, as marketers relied on proven approaches. Display formats would remain static in 2009 and revenues from other formats were set to fall by 4.4%.

Paid search has proved the most popular online ad format in these tough times, while European marketers’ commitment to display, classified ads and e-mail has been somewhat weaker. According to IAB Europe, PwC and Screen Digest, revenues associated with search will rise 8% in Europe in 2009. (Figures are based on data from France, Germany, Italy, Spain, the UK and 14 other European countries.)

Western Europe is one of the world’s most advanced advertising markets—but also one of those hit hardest by the global recession.

“In the Western European countries, total advertising spending has plunged with the financial downturn, but the Internet has withstood recessionary pressures far better than other media,” said Karin von Abrams, eMarketer senior analyst and author of the report “Online Ad Spending in Western Europe.”

“Online ad spending will post important gains in 2009 and regain significant momentum in 2010,” Ms. von Abrams said.

Source: eMarketer