Double digit growth for online advertising in Europe

Europe is poised to overtake US in online ad spend during 2011 as IAB Europe releases positive half yearly results.

IAB Europe has announced healthy double-digit growth in online ad spend for the first six months of 2010, despite the continuing challenging environment across the region.

Spain enjoyed the highest growth rate, up 20%, followed by Poland (18%) and Italy (15%).  The UK came in fifth place with a 10% increase.

In Spain, display advertising (up 28%) experienced higher growth than search (up by a lower 14%) for the first time. The boost of the national team’s performance in the World Cup, a growth in the automotive sector, and a maturing market all contributed to more ad spend going to online, with part of it coming from TV, according to IAB Europe.

“These half yearly figures suggest that a tipping point has been reached,” Alain Heureux, president and CEO of IAB Europe, said. “Every day new companies plan online ad campaigns for the first time, encouraged by reach, return on investment and consumer engagement.

“Those that are already online are allocating a greater proportion of their ad spend to the medium.  And the type of campaigns has evolved – we’re seeing great results for branding and targeted marketing using performance-based techniques.

“We’re also seeing fantastic results for cross-media campaigns incorporating TV, radio and outdoor. At this rate of growth, Europe’s online ad industry’s market value could overtake the US by the summer next year.”