Market Insights Advertising & Media Advertising

In-App Advertising - Europe

Europe

Ad spending in the In-App Advertising market in Europe is forecasted to reach €38.36bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of 8.49%, leading to a projected market volume of €57.65bn by 2029.
The projected average ad spending per mobile internet user in the In-App Advertising market is €50.87 in 2024.
When compared globally, China is anticipated to lead in ad spending with €123.20bn in 2024.
In France, the In-App Advertising market is experiencing a surge in demand, driven by innovative targeting strategies and interactive ad formats.

Key regions: China, Europe, United States, Asia, Germany

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Analyst Opinion

The In-App Advertising market in Europe is witnessing significant growth and development due to changing customer preferences and the increasing popularity of mobile applications. In recent years, there has been a surge in the number of smartphone users in Europe, leading to a higher demand for mobile apps. As a result, advertisers are increasingly turning to in-app advertising as an effective way to reach their target audience.

Customer preferences: Customers in Europe are increasingly relying on mobile applications for various purposes such as social networking, entertainment, shopping, and banking. This shift in consumer behavior has created a lucrative market for in-app advertising. With more time spent on mobile apps, users are more likely to engage with advertisements that are seamlessly integrated into the app experience. In-app advertising offers a targeted and personalized approach, allowing advertisers to reach their audience at the right time and in the right context.

Trends in the market: One of the key trends in the European In-App Advertising market is the rise of programmatic advertising. Programmatic advertising enables advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the increasing adoption of real-time bidding (RTB) platforms, which allow advertisers to target specific audience segments based on their demographics, interests, and behavior. Another trend in the market is the growing popularity of rewarded ads. Rewarded ads are a form of in-app advertising where users are given incentives, such as virtual currency or additional content, in exchange for interacting with an ad. This type of advertising is highly effective in engaging users and driving conversions, as it provides a value exchange between the user and the advertiser.

Local special circumstances: Europe is a diverse region with different languages, cultures, and regulations. Advertisers need to consider these local special circumstances when implementing in-app advertising campaigns. Localization plays a crucial role in ensuring that ads are relevant and resonate with the target audience. Advertisers also need to comply with local data protection and privacy regulations, such as the General Data Protection Regulation (GDPR), to maintain user trust and avoid legal issues.

Underlying macroeconomic factors: The growth of the In-App Advertising market in Europe is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which provides a favorable environment for businesses to invest in advertising. Additionally, the high smartphone penetration rate in Europe and the increasing availability of high-speed internet contribute to the growth of the in-app advertising market. In conclusion, the In-App Advertising market in Europe is experiencing significant growth and development due to changing customer preferences, the rise of programmatic advertising, and the increasing popularity of rewarded ads. Advertisers need to consider local special circumstances and comply with data protection regulations to effectively target the diverse European audience. The underlying macroeconomic factors, such as a strong economy and high smartphone penetration rate, further contribute to the growth of the market.

Methodology

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.