Digital advertising increased 13.9% to €55.1 billion in 2018 largely driven by mobile, video and social ad expenditure, according to new figures presented by the IAB Europe.
This marks the fastest growth since 2011 with the market doubling since 2012.
Out-stream video grew 44.7% in 2018 whilst in-stream grew 19.7%.
Overall, video ads grew 30.9% to reach €7.6 billion in ad spending. That means video ads now account for 33% of the overall display market.
“It is encouraging to see such healthy, double-digit growth across the entire region, driven largely by mobile and video,” said Townsend Feehan, CEO at IAB Europe.
“The digital advertising industry now contributes €55 billion towards European Gross Domestic Product and is adding value to both mature and emerging markets. With digital advertising now accounting for 45 percent of all paid media advertising across the region and new European data protection rules making users more aware of their choices about how their data is processed, it is important that we focus on delivering privacy-first ad experiences that protect consumers and support Europe’s digital economy.”
Search continues to dominate revenues with a growth of 12.5% and a market value of €25 billion.
Meanwhile, social has fuelled display growth across Europe, growing 33.7% year-on-year and now accounts for 49% of display.
Total mobile ad spending jumped 31.4% to €22.8 billion last year, accounting for 41% of all digital expenditure in Europe.
“Mobile, video and social continue to drive growth across the region, with mobile now closing in on 50 percent of both display and search, and video accounting for a third of all display,” added Dr. Daniel Knapp, Chief Economist, IAB Europe. “These formats and environments reflect consumer engagement with a range of devices, for entertainment, utility and connection, demonstrating the diverse power of digital advertising to influence consumer decision-making.”
In 2018, the markets with the largest growth in the CEE region were led by the Ukraine (26.9%), followed by Russia (24.9%), Belarus (23.6%), Czech Republic (20.9%) and Serbia (20.1%).