Market Insights Advertising & Media Advertising

Search Advertising - EU-27

EU-27

Ad spending in the Search Advertising market in EU-27 is forecasted to reach US$29.89bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 7.78%, leading to an estimated market volume of US$43.48bn by 2029.
When compared globally, the United States will contribute the most to ad spending (US$137.00bn in 2024).
Within the Search Advertising market, 40% of total ad spending is expected to come from mobile in 2029.
The average ad spending per internet user in the Search Advertising market is projected to be US$77.13 in 2024.
In the EU-27, search advertising is seeing a shift towards more targeted and personalized strategies to enhance ROI for advertisers.

Key regions: Australia, Japan, United States, Europe, Asia

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Analyst Opinion

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

Customer preferences: Customers in the EU-27 region are increasingly relying on search engines to find information, products, and services. The convenience and speed of searching online have made it the go-to method for consumers to find what they need. Additionally, the rise of mobile devices has further fueled the demand for search advertising, as people are constantly connected and searching on the go.

Trends in the market: One of the key trends in the Search Advertising market in EU-27 is the increasing competition among advertisers. As more businesses recognize the importance of online visibility, they are investing heavily in search advertising to ensure that their products and services are prominently displayed in search engine results. This has led to a rise in bidding for keywords and an increase in the overall cost of search advertising. Another trend in the market is the growing importance of local search advertising. With the rise of voice search and the increasing use of mobile devices, consumers are often looking for products and services near their location. This has created a demand for localized search advertising, where businesses can target customers based on their geographical location.

Local special circumstances: The Search Advertising market in EU-27 is influenced by the diversity of languages and cultures within the region. Advertisers need to tailor their campaigns to specific countries and languages to effectively reach their target audience. This presents a challenge for advertisers, as they need to invest in creating localized content and understanding the cultural nuances of each market.

Underlying macroeconomic factors: The growth of the Search Advertising market in EU-27 is also driven by the overall economic growth in the region. As the economy improves, businesses have more resources to invest in advertising and marketing. Additionally, the increasing adoption of digital technologies and the internet has created a favorable environment for the growth of search advertising. In conclusion, the Search Advertising market in EU-27 is experiencing significant growth and development, driven by customer preferences for online search, increasing competition among advertisers, the rise of local search advertising, the diversity of languages and cultures within the region, and the overall economic growth. Advertisers in the EU-27 region need to adapt their strategies to effectively reach their target audience and stay competitive in the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.