Digital Europe: Tracking the growth of online marketing spend

Tracking the growth of online marketing spend

Digital Insight Report - June 2006, edition 7

Digital Europe: Tracking the growth of online marketing spend

Online advertising is changing the face of marketing across Europe. Since 2000 the web has become established as a mainstream consumer media channel, and across the continent marketing budgets have now followed audiences - although the pace and scale varies greatly between countries. This seventh edition of the Digital Europe tracking study collates fresh research to give a snapshot of where the industry is today.

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Comments (2)

After I wrote this report, a bunch of folks asked for more information about the challenges in measuring online advertising. Back in 1997 I helped set up the first audit of online ad spend in Europe, a project with PricewaterhouseCoopers based here in London that I helped run till 2005. We had to figure out the risks and challenges in measuring online advertising, and here are a few of the learning points that might be worth double checking if you’re involved in similar projects.

Remember that the rate of growth in digital media is incomparable to anything the marketing industry saw in classic channels. But that can create problems with its measurement: the constantly evolving types of online advertising mean that it’s always necessary to double check exactly what’s being measured and how. If you’re involved in online advertising research, then look at the models for measurement in classic media, and then the tools available in online. Pay particular attention to the challenges of measuring search engine advertising and online advertising sales networks as there’s a material risk of double counting in both cases. Check out the impact of ecommerce sales on the size of the online advertising sector, but be clear about whether the transaction is included (it’s a subtle but important difference between tracking the growth of spend on media space vs spend on online commerce).

Danny Meadows-Klue, Series Editor, Digital Insight Reports

At long last, Internet Advertising is getting the credit it deserves by marketers all over the world. Increasingly, it's a must have part of any media mix for all categories of advertisers. That recognition of value is happening not just in search for direct marketers but also for brand advertisers in the display side of the Internet business. I think the efforts of IAB's everywhere is working.

Greg Stuart, President and CEO, Interactive Advertising Bureau (US)

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