Online advertising spend went up by 11.5% in the first half of 2017, primarily driven by mobile and video formats, according to a study from IAB Europe and IHS Markit. The study revealed that online advertising grew to €22.2bn, from €20.2bn within the first half of 2016. The key driver for this growth was mobile, which grew at an overall rate of 41.4% to a value of €7bn, outdoing other digital formats. Mobile display ad spend increased by 45.9%, while desktop display decreased by 1.4%. Online video advertising also experienced a huge leap reaching €1.7bn in H1 2017 which accounts for a fifth (20%) of total display spend. Video managed to grow 3.2 times faster than non-video display spend.
Overall, display ad growth did triumph that of paid search advertising with display increasing by 13.1% and search by 12.8%. Display reached over €8bn in H1 2017 representing 37% of total online advertising, while search accounted for 48%. The impressive growth in Display can be attributed to its standard increasing popularity within central and eastern European regions where display has grown by 16% compared to 12.6% in Western European markets.
Daniel Knapp, executive director at IHS Markit, said: “A stable macro-economic environment in the Eurozone has fuelled advertising demand, and our data shows that political uncertainty in other countries has not impacted growth to date. The European digital advertising market has been growing in the narrow window of 13.1% and 11.5% every year since 2012, and the most recent data is again in that range.
“Heightened investment in digital is partly a redistribution of spend from other media, a migration from below-the-line budgets, and new advertisers. But our data also signals that the structure of the digital advertising market is changing as we enter the post-desktop age.”