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European Digital Ad Spend Will Reach $27 Billion in 2013

European Digital Ad Spend Will Reach $27 Billion in 2013

Digital advertising expenditure will reach $27 billion this year in Western Europe, according to Group M’s study, This Year, Next Year: Interaction 2013. The region sits in third place behind North America and Asia Pacific.

North America will lead the world in overall digital advertising investment with $43 billion predicted. Asia Pacific will fall in just behind in second place with £37 billion set to be spent during 2013.

The status quo between regions has been maintained from 2012. North America’s estimated digital advertising spending reached $38.3 billion. Asia Pacific’s $30.6 million and Western Europe’s $24 billion were some way off.

Internet Advertising Close to $100 Billion

Across the world internet advertising hit $99 billion in 2012, which was a 16% rise over the previous year’s figure. It accounted for 20% of all global measured advertising expenditures.

Group M’s report has shown that the online share of ad spend is heading skywards, but it’s not seeing the kind of steep incline you might expect. Between 2007 and last year there was only an 8% increase and since 2009, its share has only been growing by 1% each year.

For annual e-commerce spend per user, it’s an entirely different story. From 2007 to the present day there’s been a 64% increase. In 2013 the average user is forecasted to pay out $859 on the channel.

E-commerce Cashflow Rising Fast

Globally, the amount of cash flowing through e-commerce totalled $917 billion in 2012. Growth of 18% is predicted for 2013 and this volume is estimated to generate 40% of online paid media investment today.

Rob Norman, global chief digital officer at Group M, alluded to the steady decline in desktop sales that’s been reported on of late and how the smartphone is the likely cause of the market’s contraction.

“Ken Olsen, founder and chief executive officer of Digital Equipment, said in 1977, ‘There is no reason for any individual to have a computer in his home.’ It turns out that he may, inadvertently, have been right. Why have a computer in your home when you can have computing anywhere you like?” Norman said.

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Simon Holland

Simon Holland

Simon is the news and research reporter at Existem. Previously a technology journalist, he now spends his time investigating both future and developing trends in performance marketing whilst producing editorial content for performancein.com

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