Advertising - Europe

  • Europe
  • Ad spending in the Advertising market in Europe is forecasted to reach US$200.80bn in 2024.
  • The largest market within the region is Search Advertising, with a market volume of US$60.01bn in 2024.
  • When compared globally, the United States is expected to lead in ad spending, reaching US$422.30bn in 2024.
  • Within the Advertising market, 72.91% of total ad spending in Europe will come from digital sources in 2029.
  • The average ad spending per capita in the Search Advertising market is projected to be US$71.11 in Europe in 2024.
  • Moreover, Advertising market of the 86.71% revenue in Europe will be generated through programmatic advertising in 2029.
  • In France, native advertising is gaining popularity as brands seek more authentic ways to engage with consumers in the advertising market.

Key regions: United States, China, Europe, Asia, Japan

 
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Analyst Opinion

The Advertising market in Europe has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences:
Customers in Europe are increasingly demanding personalized and targeted advertising campaigns. They want advertisements that are relevant to their interests, needs, and preferences. This has led to a shift towards data-driven advertising, where companies use consumer data to create customized campaigns. Additionally, customers are also showing a preference for digital advertising over traditional forms of advertising, such as print and television.

Trends in the market:
One of the major trends in the European advertising market is the rise of programmatic advertising. Programmatic advertising allows companies to automate the buying and selling of ad inventory, enabling them to reach their target audience more efficiently and effectively. This trend is fueled by advancements in technology and the availability of vast amounts of data. Another trend is the increasing use of social media platforms for advertising. Companies are leveraging the large user base of platforms like Facebook, Instagram, and Twitter to reach their target audience in a more interactive and engaging manner.

Local special circumstances:
Each country in Europe has its own unique advertising market, shaped by local regulations, cultural preferences, and economic conditions. For example, in countries like the United Kingdom and Germany, there is a strong tradition of print advertising, with newspapers and magazines still playing a significant role in the advertising landscape. In contrast, countries like Sweden and Denmark have embraced digital advertising more rapidly, with a higher proportion of ad spend going towards online platforms.

Underlying macroeconomic factors:
The advertising market in Europe is also influenced by macroeconomic factors such as GDP growth, consumer spending, and business investment. When the economy is performing well, businesses tend to increase their advertising budgets to capitalize on the growing consumer demand. Conversely, during economic downturns, companies may reduce their advertising spend to cut costs. Additionally, political and social factors, such as Brexit and the COVID-19 pandemic, can have a significant impact on the advertising market in Europe, creating uncertainties and changing consumer behavior. In conclusion, the Advertising market in Europe is evolving to meet the changing customer preferences for personalized and targeted advertising. The rise of programmatic advertising and the increasing use of social media platforms are major trends in the market. Each country in Europe has its own unique advertising landscape, shaped by local regulations, cultural preferences, and economic conditions. The advertising market in Europe is also influenced by macroeconomic factors such as GDP growth, consumer spending, and business investment.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

Overview

  • Ad Spending
  • Analyst Opinion
  • Reach
  • Global Comparison
  • Methodology
  • Key Market Indicators
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