In the European Union, online advertising is expected to grow significantly in the coming years. This growth is being driven by several factors, including the continued growth of the Internet population and the increasing use of mobile devices.
The European Union has a population of over 500 million people, and over 75% of them have access to the Internet. This number is expected to grow to over 80% by 2020. In addition, there are currently over 500 million active mobile devices in the European Union, and this number is expected to grow to over 1 billion by 2020.
With such a large and growing audience, it’s no surprise that online advertising in the European Union is expected to grow significantly. In fact, research firm eMarketer estimates that online ad spending in the EU will reach €32.8 billion by 2020, up from €16.6 billion in 2015. This represents a compound annual growth rate (CAGR) of 14.4%.
Mobile devices are playing an increasingly important role in driving this growth. In 2015, mobile devices accounted for 39% of all online ad spending in the EU, and this is expected to increase to 54% by 2020.
So what does this all mean for advertisers? There are a few key trends that are worth paying attention to:
1) The continued growth of video advertising: Video advertising is expected to continue its strong growth in the EU, reaching €9.3 billion by 2020 (up from €3.4 billion in 2015). This represents a CAGR of 23%.
2) The rise of programmatic buying: Programmatic buying now accounts for 50% of all display ad spending in the EU (up from just 10% in 2014). This trend is being driven by the increasing use of real-time bidding (RTB), which allows advertisers to purchase ad impressions through automated auctions. RTB is expected to account for 80% of all programmatic ad spending by 2020.
3) The growth of native advertising: Native advertising is expected to grow significantly in the EU, reaching €5.8 billion by 2020 (up from €1.6 billion in 2015). This represents a CAGR of 28%. Native ads are those that are designed to blend in with the surrounding content on a website or app, and they are becoming increasingly popular with both advertisers and publishers as they provide a more seamless user experience than traditional banner ads.
4) The rise of mobile advertising: As mentioned above, mobile devices are playing an increasingly important role in online advertising in the EU. In 2015, mobile devices accounted for 39% of all online ad spending in the EU, and this is expected to increase to 54% by 2020. This reflects both the growing use of mobile devices for browsing and shopping online as well as the increasing number of people who are using their smartphones as their primary means of accessing the Internet.
