The European online advertising market will be worth â‚Ź6.4 billion (£4.0 billion) by 2007, according to a report from Forrester Research released this week. The group predicts that online advertising will begin to pick up again next year, with mobile and interactive digital television (iDTV) advertising starting ‘more quietly’.
The UK and Germany will account for almost 50% of total web advertising spend in Europe by 2007, driving E1.5 billion and E1.4 billion respectively; Sweden and Norway outpace all other countries in relative terms, devoting roughly 10% of ad budgets to the Web in 2007, says the report.
Forrester forecast web, iDTV and mobile advertising in 17 European countries in order to compile the Online Advertising Pick Up Again study.
Mobile ads on the way Currently, 8.5 billion SMS text messages are sent in Europe every month, with enhanced messaging services (EMS) and multimedia messaging services (MMS) now on their way. Advertisers are ‘warming up’ to address consumers via mobile phones as a result, says Forrester.
To avoid violating the phone’s personal nature, marketers will limit advertising to E633 million in 2007, 10% of total online ad budgets; iDTV’s 46% penetration in Europe tempers total ad spend to E767 million in 2007, says Forrester. The UK – with more than 10 million subscribers currently – leads the continent, accounting for almost 40% of Europe’s iDTV ad spend.
| European 2007 Online Advertising Forecast |
| |
|
|
| |
Spend (â‚Ź million) |
Share Of Total Online Spend (%) |
| UK |
1500 |
23.7 |
| Germany |
1400 |
22.1 |
| iDTV |
767 |
12.1 |
| Mobile |
633 |
10.0 |
| Source: Forrester, May 2002 |
Advertisers frustrated with lack of web metrics move beyond the banner “When we talked with advertisers in 2001, they were bullish about rising online budgets, yet frustrated by a lack of adequate metrics for Web marketing,” said Forrester analyst Diana Janssen.
“Advertising heavily with banner ads, they anticipated shifting over the next three years to more varied ad formats like sponsorship, as well as to better-integrated campaigns across multiple devices.”
Consequently, 30% of those interviewed will not increase the proportion of spend on banner ads; instead, 33% plan to boost email marketing initiatives. Most online ad budgets go straight to PC-based campaigns; only 22% of respondents advertise via mobile or iDTV, says Janssen. However, by 2005, the respondents plan to spend an average of 15% of their digital marketing budget on new devices.
