Online advertising has been in use throughout the world and it proved to be more effective when compared to the other traditional means of advertising. As per the IAB Europe figures on online advertising, the online advertising market in Europe had an accelerating growth rate of 15.3% in 2010. The online ad spend in 2010 was found to be €17.7 billion whereas, it was €15.3 billion in 2009. The online accounted for 18% of the total European advertising market. As a share of total advertising market, online accounts for 28.7% in UK, 28% in Denmark, 26.3% in Norway and 22.3% in Netherlands and Czech Republic.
Among the online advertising trends, online display advertising had performed well in Europe. It overtook search advertising with an average growth rate of 21.3%. However, search advertising experienced a growth of 15.1% in 2010. Display ads as per the data collected included PC-based and mobile banners, rich media and video formats. A growth rate of more than 20% was observed with respect to online display advertising in both mature as well as emerging markets. It was found to be 31% in Ireland, 30% in Spain and 27% in Russia.
There was a continued growth of online TV inventory and long-form video consumption. It pushed up the spend while still maintaining the high CPM (cost per thousand). In most markets, the online video ad spend almost doubled. Online video grew 125% in Spain to €13 million and in UK the growth was 90% to a market value of €63 million. As per the IAB Europe’s AdEx survey, out of the 12 markets surveyed for mobile advertising, the mobile ad spend accounted for 2% to 3% of the total online ad spend. However, the powerful performance of online display advertising in Europe is contributed by the video, mobile and social media.