Search Engine Optimisation Web Log (BLOG)
Editor: Matt Paines

| This News Blog is dedicated to bringing news, information and innovations targeting the Search Engine Optimisation industry.

Search remains leading format for online marketing spend

The European online advertising market grew by 20% in 2008 and is now worth an estimated 12.9 billion Euros the latest industry reports suggest.

Although these headline figures may look impressive, the overall rate of pan-European growth remained close to 2007 levels and spending has slowed significantly in the top 10 most mature markets.

As a result 2008 may have been one of the worst years for advertising in any medium.

The top 10 markets in Europe account for 93% of the total value of the market, and many of these countries saw year-on-year growth rates less than 20%.

For example, the Netherlands, Europe's early adopter of online advertising, grew by just 9% in 2008 and in France growth slowed to 18.5%.

Meanwhile the UK, Germany and Sweden saw growth of 19%.

The figures from Europe's Interactive Advertising Bureau (IAB Europe) and PriceWaterhouseCoopers (PwC) also revealed that search remains the leading format in Europe with the strongest year-over-year growth rate of 26%. It now accounts for 43% of online ad expenditure and a value of 5.6 billion Euros in the 19 countries measured.

Online classified ads rank second in terms of year-over-year growth rates, at 17.4%, with a 26% share of ad spend and a market value of 3.8 billion Euros.

Alain Heureux, president and CEO of IAB Europe explained that this can be partly explained by measurement and performance based marketing needs.

In times of recession advertisers are more focused on proving return on investment for every Euro spent and these two formats are the most accountable in online advertising, he said.

Comment:

Become a Fan on Facebook

Follow Matt on Twitter