Marketers across Europe continue to embrace the power of online.

editor — Tue, 17 Nov 2009 13:28:35 +0000

Marketers continue to reallocate spend from traditional media into online. 83% of marketers increased online advertising spend during 2009 with 94% planning to increase in 2010. Audience targeting and cost efficiencies identified as drivers of online growth. Mobile advertising spend rising rapidly with format beginning to fulfil its potential as the ‘one to watch’.

EIAA research released today reveals that marketers across Europe continue to embrace the power of online during a year of recession due to its ability to maximise limited budgets. 83% of all marketers surveyed stated that online advertising spend during 2009 has been greater than in 2008 and the medium looks to go from strength to strength (94% expect growth in online in 2010 and 93% in 2011).

Marketers predict a 7.6% year on year rise in online advertising spend in 2010 and a sharper increase of over 15% forecast for 2011. Those investing in online are impressed with the results too, with 84% of respondents satisfied* with the performance of online as a medium and 96% seeing online advertising as ‘essential’ or ‘a growing medium’.

The EIAA Marketer’s Internet Ad Barometer provides a timely snapshot of the current trends and opinions of the advertising industry across Europe, collating information solely from decision makers that have responsibility for allocating their company’s media budget and setting advertising strategy. The bi-annual survey offers not only a pulse check on the current state of the market but also an insight into future trends, allowing advertisers, media owners and agencies alike to benchmark and tailor their strategies in order to maximise results.

Targeting and cost efficiencies reign in tough times

Over a third of respondents (36%) revealed that they have increased online media planning in the second half of 2009 (vs. 28% in H1 2009) in order to take advantage of the medium’s effective targeting capabilities during the economic downturn – a growth of 29% since the first half of the year. Value for money was also deemed a core driver with 31% of marketers quoting cost efficiency as a reason for increasing their use of online.

Email advertising has risen in popularity during the second half of this year with 61% of those surveyed increasingly investing in this form of online advertising (vs. 46% in H1 2009). Particular growth has also been noted in the use of behavioural targeting (33% in H2 2009 vs. 25% in H1 2009), advertising networks (31% in H2 2009 vs. 25% in H1 2009) and affiliate marketing (36% in H2 2009 vs. 26% in H1 2009) as marketers perhaps look to make the most of streamlined budgets by tailoring advertising methods for clients.

Mobile is a rising star

The findings also reveal that mobile advertising continues to be ‘one to watch’ over the coming months, attracting considerable current and predicted investment. One in three (33%) organisations are already incorporating mobile into their overall advertising strategies and almost one in five (19%) claim that use of mobile advertising is increasing, up from 12% of marketers in the first half of the year. This represents a big jump, possibly driven by the increasing popularity of innovative Smartphones. Additionally, 86% believe mobile advertising spend has increased in 2009 and almost all (97%) predict growth during 2010 and again in 2011.

Reallocation of traditional advertising budgets

According to the marketers surveyed, advertising budgets continue to be diverted into online from traditional media formats. In comparison with the first half of the year, the biggest shift in spend has been from traditional direct marketing, with 30% of marketers who have seen an increase in online advertising spend stating that it has come from this area (compared with 24% in H1 2009). Findings also show a sustained shift of investment from television budgets with over a third of marketers diverting spend to online in both H1 2009 (37%) and H2 2009 (36%), as broadcast content is becoming increasingly available via the internet on sites such as ITV.com.

Marketers in larger companies** in particular are diverting more spend from TV into online (59% vs. 36% of all marketers) and it is behavioural and demographic targeting that are attracting heavier investment with 47% (vs.33%) and 29% (vs. 19%) of marketers respectively increasing their use of these online advertising formats. Video also continues to secure budget from other media. 33% of all marketers indicate their use of online video advertising is increasing with 20% indicating that a growth in spend is coming from other media budgets.

The evolution of consumer habits appears also to be influencing allocation of advertising spend. In line with recent EIAA Mediascope Europe consumer research*** which revealed that almost a quarter (22%) of all Europeans now use TV and internet simultaneously, brands are recognising that consumer’s media consumption is multi-channel.

Alison Fennah, Executive Director of the EIAA said: “The Marketers’ Internet Ad Barometer findings reveal that online advertising is continuing to thrive and grow due to its flexibility, accountability and ability to offer brands a robust return on investment whilst the recession impacts overall marketing budgets. For this reason, online advertising is further consolidating its position as the medium of choice for marketers across Europe. Marketers still seek innovation with new formats such as mobile evolving and helping interactive media to emerge strongly as we look forward to the upturn.”

Notes to Editors

* Ranking the online advertising between 6 and 10 on a scale of satisfaction (1 not at all satisfied and 10 very satisfied)

** Organisations employing over 250 staff

*** EIAA Media Multi-tasking Report, June 2009

www.eiaa.net

SEO-DNS » marketers

Marketers across Europe continue to embrace the power of online.

Targeting and cost efficiencies reign in tough times

Mobile is a rising star

Reallocation of traditional advertising budgets