Mobile drives €18.6 billion online ad revenue in 2016
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Mobile drives €18.6 billion online ad revenue in 2016

IHS Markit (www.ihs.com) — which specializes in critical information, analytics and solutions -- in collaboration with IAB Europe -- announced updated findings from its annual European online advertising report, “AdEx Benchmark H1 Study.” The online advertising market grew 13.4% year-on-year from €16.4 billion to €18.6 billion in the first six months of 2016.

“Strong economic growth in all the European Big Five for the first time since 2010 underpinned the surge in online advertising in the first six months of 2016,” said Eleni Marouli, principal analyst at IHS Technology and report author. “We saw an uplift across all formats from 2015.”

Mobile advertising amounted to €3.8 billion in the first six months of 2016, split evenly between search and display. Mobile’s share of search was 32% and mobile’s share of display was 32.8%, the report said.

“Mobile accounted for one in three euros spent in Europe,” Marouli said. “We expect mobile to play a primary role in European online advertising and to maintain growth at a double-digit level for 2016.”

Mobile display grew by just over 61% and mobile search by just over 57%. Mobile display was particularly prominent in Central and Eastern Europe, growing over 100% for the first six months of 2016 year-on-year. Western Europe’s more mature mobile display markets saw modest growth of just over 13%.

“We expect spending on ads online to grow over 10 percent across Europe in 2016, faster than any other medium,” said Daniel Knapp, senior director at IHS Technology. “Finally the advertising infrastructure, measurement tools and volume of available inventory are all coming into place for advertisers to adjust their spending to match the increasing time people spend on online media.”

Hurdles identified by the report include duplication and fragmentation of ad tech infrastructure, no universal digital current and a complexity of devices, platforms and behaviors.

 

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