Online Display Ad Spend to Grow by €4bn in Europe by 2019

Tablet Users Coffee Shop Cloud Wi-fiOnline display advertising spend in Europe is set to grow from €7.3bn (£5.7bn) this year to €11.9bn by 2019, a compound annual growth rate (CAGR) of 10.3 per cent.

The figures come from Forresters latest five-year forecast, which also point towards the US display ad market growing by a similar amount, with a CAGR of 13.7 per cent.

The increase in Europe is mainly driven by the growth of mobile advertising, and the explosion in video as an online advertising format, with European marketers increasingly favouring rich media and video formats over static and text ads. Video ad spend is expected to grow 20 per cent CAGR between now and 2019, driven by high demand, high consumer engagement and high CPMs.

“Tablet display is taking off full speed in virtually every European market,” said Samantha Merivlat, a researcher for Forrester. “With their larger screen real estate and growing role in customers path to purchase, tablet-based ads will grow at a 40.5 per cent CAGR over the next five years, attracting a third of total online display revenue by 2019.”

The research also explored patterns in display across different devices, with ad spending on PCs stagnating and even shrinking in mature markets such as Norway and the UK, where PC display ad spend will drop by 6.3 per cent CAGR. By 2019, online display advertising on PCs will make up around 52 per cent of the market, as opposed to the 81 per cent it currently hosts.

Smartphones will continue to see strong growth of around 20.5 per cent, although the growth curve is starting to flatten slightly in the UK, Norway and Netherlands, where the majority of new investment is being focused on tablets.