Advertising - Europe | Statista Market Forecast

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$61.74bn in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$425.90bn in 2024.
Within the Advertising market, 75% of total ad spending in Europe will come from digital sources in 2030.
The average ad spending per capita in the Search Advertising market is projected to be US$73.16 in Europe in 2024.
Moreover, Advertising market of the 88% revenue in Europe will be generated through programmatic advertising in 2030.
In France, native advertising is gaining popularity as brands seek more authentic ways to engage with consumers in the advertising market.

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 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.

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.