European Online Advertising Sales Soar

Despite the credit crunch, the internet is continuing to prove the medium of choice for more advertisers as they seek to maximise return on investment, according to new research from a leading pan-European trade organisation for sellers of interactive media and technology providers.

The EIAA (European Interactive Advertising Association) Marketers’ Internet Ad Barometer shows 70% of advertisers claim their allocated online ad spend is increasing in 2009 and further growth is predicted in the digital sector in 2010 and 2011.

Online is playing an increasingly important role in overall advertising strategies with 47% of advertisers now regarding online as an essential factor within the marketing mix versus 38% in 2008 and 17% in 2006.

The EIAA reports marketers are reallocating budget from traditional media to online. The research indicates the increase in online ad spend is coming from TV (37% of advertisers), newspapers (32%) and magazines (46%).

The growth in digital demonstrates the accountability of the medium and the increasing value and time consumers are spending online, says the EIAA, with weekly internet use up 28% in 2008 compared with 2004.

Advertisers are increasingly recognising the value and impact of mobile advertising, say researchers. They found advertisers who see online advertising as essential are increasing their mobile budgets significantly.

Almost a third of all advertisers (30%) say they use mobile within their advertising strategy and, with mass market user penetration of 87% across Europe, the mobile advertising format is clearly set to become an increasingly effective platform.

The research also points to growth in particular formats such as online video advertising, with 35% of advertisers stating this format is increasingly being used within their online strategies.

According to the research, advertisers are currently allocating an average of 16% of their online ad spend at a pan-regional rather than country level versus 11% in 2008.

On average pan-regional advertisers also predict a higher increase in their online advertising spend in 2009 with 82% citing an increase compared with 69% of their local counterparts.

Alison Fennah, executive director of the EIAA said: “With every media investment closely scrutinised by brands and a renewed focus on ROI, online comes into its own as the most effective way of providing accountability for marketers. Market conditions are tough, yet online is continuing to innovate and emerging formats such as mobile advertising and online video advertising look set to become big players in the next few years as brands see the benefit of cross-platform marketing campaigns.”