Research published by the IAB today shows that despite the economic downturn and terrorist attacks in the US, the UK online adspend is growing faster than the online markets of Germany, France and Italy. Between 1999 and 2000 the UK grew by 135% to £209 million ÂÂ- £39 million more than it closest rival, France, at £170 million. German figures ÂÂ- from research company Prognos AG ÂÂ- show its market to be £165 million in 2000.
The total online advertising expenditure figure for all participating European member states in 2000 was £1.2 billion. This is an increase of more than 700% from a figure of £164 million in 1999, according to the report.
The UK, France and Germany lead the growth of online advertising across Europe. In the UK the Net now takes more than 1% of adspend, overtaking cinema in Q3 2000, according to the IAB. The online advertising market trebled in size between 1999 and 2000.
The data was compiled with actual expenditure figures from company accounts submitted to PWC from media owners and advertising agencies across Europe. Its authors claim it is the first definitive report of its kind, as it is based of verified expenditure figures rather than estimates.
Online has continued to grow faster than any other medium at any time in history, says the IAB. At the end of October a new study from the Bureau will reveal the exact performance of the online advertising industry in the first half of this year. “With the advertising economy under significant pressure and spend falling in most sectors the critical question will be how the first two quarters of 2001 compare to 2000,” it says.
Paul Pilkington, senior manager at PWC, said: “By the end of 2000, internet advertising had reached a size comparable with cinema advertising and in Europe the medium had shown continuous year on year growth despite adverse conditions in the wider advertising market.’
