Advertising - EU-27 | Statista Market Forecast

Ad spending in the Advertising market in EU-27 is forecasted to reach US$115.30bn in 2024.
The largest market within the Advertising sector is TV & Video Advertising with a market volume of US$31.74bn in 2024.
When compared globally, the United States is expected to lead in ad spending with US$425.90bn in 2024.
In EU-27's Advertising market, 70% of total ad spending is anticipated to come from digital sources by 2030.
The average ad spending per capita in the TV & Video Advertising sector is projected to be US$70.94 in 2024.
Furthermore, Advertising market of the 85% revenue in the EU-27 will be generated through programmatic advertising by 2030.
In the EU-27, digital advertising is experiencing a surge, with programmatic ad buying and personalized content leading the market trends.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in EU-27 is experiencing significant growth and development.

Customer preferences: Customers in the EU-27 are increasingly demanding personalized and targeted advertising campaigns. They want advertisements that are relevant to their interests and needs, and they are more likely to engage with brands that provide such tailored experiences. Additionally, customers are becoming more aware of the importance of ethical and socially responsible advertising. They are more likely to support brands that align with their values and promote sustainability.

Trends in the market: One of the key trends in the Advertising market in EU-27 is the increasing use of digital advertising channels. With the widespread adoption of smartphones and the internet, consumers are spending more time online, and advertisers are leveraging this trend by investing in digital advertising platforms. Social media platforms, search engines, and online video platforms have become popular channels for reaching and engaging with consumers. Advertisers are also utilizing programmatic advertising techniques to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. Another trend in the Advertising market in EU-27 is the growing importance of influencer marketing. Influencers, who have a large following on social media platforms, are being used by brands to promote their products or services to their target audience. This form of advertising is seen as more authentic and relatable, as influencers often have a personal connection with their followers. Brands are collaborating with influencers to create sponsored content that resonates with their audience and drives brand awareness and sales.

Local special circumstances: The Advertising market in EU-27 is influenced by local cultural and linguistic diversity. Each country in the EU-27 has its own unique language, culture, and consumer behavior. Advertisers need to consider these differences when developing their advertising campaigns. Localization and translation of advertisements are crucial to effectively reach and engage with consumers in different EU countries. Advertisers also need to be mindful of cultural sensitivities and adapt their messaging accordingly.

Underlying macroeconomic factors: The Advertising market in EU-27 is influenced by macroeconomic factors such as GDP growth, consumer confidence, and industry competition. When the economy is growing and consumers have more disposable income, advertisers tend to increase their advertising budgets to capitalize on the increased consumer spending. On the other hand, during economic downturns, advertisers may reduce their advertising spending to cut costs. Additionally, the level of competition in the Advertising market also affects the industry dynamics. Advertisers need to constantly innovate and differentiate themselves to stand out in a crowded market.

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 Global Survey). 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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.