17 November 2009 | Author: D. Warburton Search Copywriter

Online advertising spend to rise in 2010

Online advertising spend across Europe is predicted to rise by 7.6 per cent in 2010 and to grow even more rapidly in 2011, bucking the recession that has hit other sectors of the advertising industry.

The trend was identified in a new report published by the European Interactive Advertising Association (EIAA), which includes such industry leading organisations as AOL, BBC, eBay and MTV among its members. The report, titled the Marketers' Internet Ad Barometer, expects online advertising budgets to increase by 15 per cent year on year, particularly as sectors such as mobile and video advertising continue to grow at a rapid rate.

The Guardian reports that the survey was conducted across nine European markets, with 33 per cent of senior marketing executives stating that their spend on online video advertising was increasing, and 20 per cent increasing their spend on mobile advertising.

Despite the news that online advertising has overtaken TV spend in the UK, the EIAA also reported that broadcaster-owned websites such as ITV.com are beginning to catch up with marketers by offering TV shows online.

This new research presents a direct contrast to earlier reports that suggested online ad spend would decrease year-on-year, with Group M predicting online display advertising to fall by 12 per cent and classified ads to drop by 4 per cent. The earlier survey only anticipated growth in the search advertising sector dominated by Google, which was expected to increase by 5 per cent.

The latest findings signal hope for the future of advertisers, as online ads are increasingly viewed as the key to leading the industry out of the recession.

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