In-App Advertising - EU-27

EU-27

Highlights

Ad spending in the In-App Advertising market in EU-27 is forecasted to reach US$22.07bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 7.83%, leading to a projected market volume of US$34.69bn by 2030.
The average ad spending per mobile internet user in the In-App Advertising market in EU-27 is estimated to be US$56.25 in 2024.
When compared globally, China is expected to generate the highest ad spending with US$132.80bn in 2024.
In the EU-27, the rise of programmatic buying is reshaping the landscape of in-app advertising, offering targeted and efficient ad placements to reach diverse audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-App Advertising market in EU-27 is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the EU-27 are increasingly using mobile devices for various activities, including accessing apps. This shift in customer behavior has created a growing demand for in-app advertising. Customers prefer personalized and targeted advertisements that are relevant to their interests and needs. They also value non-intrusive ad formats that do not disrupt their app experience. Advertisers are responding to these preferences by leveraging data analytics and artificial intelligence to deliver more personalized and engaging in-app advertisements.

Trends in the market: One of the key trends in the In-App Advertising market in EU-27 is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to reach their target audience more efficiently and effectively. This trend is driven by advancements in technology and data analytics, which enable advertisers to optimize their ad campaigns in real-time and measure their performance more accurately. Another trend in the market is the increasing adoption of native advertising. Native ads blend seamlessly with the app's content, providing a more natural and less intrusive advertising experience. This format is gaining popularity among advertisers as it allows them to reach their target audience in a more organic way, without disrupting the user experience.

Local special circumstances: The In-App Advertising market in EU-27 is influenced by several local special circumstances. One of these is the General Data Protection Regulation (GDPR), which has had a significant impact on data privacy and consent requirements for advertising. Advertisers in the EU-27 need to ensure that they comply with the GDPR's regulations, which has led to a greater emphasis on obtaining explicit user consent for data collection and targeting. Another local special circumstance is the diversity of languages and cultures within the EU-27. Advertisers need to tailor their in-app advertisements to different languages and cultural contexts to effectively engage with their target audience. This requires localization and adaptation of ad content, which can present both challenges and opportunities for advertisers operating in the EU-27.

Underlying macroeconomic factors: The In-App Advertising market in EU-27 is also influenced by underlying macroeconomic factors. The overall economic growth in the EU-27 region has a positive impact on advertising budgets, as companies allocate more resources to promote their products and services. Additionally, the increasing penetration of smartphones and internet connectivity in the EU-27 countries provides a larger audience base for in-app advertising. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital technologies and online activities, including app usage. As people spend more time on their mobile devices, the demand for in-app advertising has increased. Advertisers are capitalizing on this trend by investing more in in-app advertising to reach and engage with their target audience effectively. In conclusion, the In-App Advertising market in EU-27 is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are focusing on delivering personalized and non-intrusive in-app advertisements, leveraging programmatic advertising and native advertising formats. They are also adapting to local special circumstances such as the GDPR and the diversity of languages and cultures within the EU-27. The overall economic growth and the impact of the COVID-19 pandemic are further driving the growth of the in-app advertising market in the EU-27.

Data coverage:

The data encompasses B2B enterprises. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., the Consumer Insights Global Survey), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year.