Market Insights Advertising & Media Advertising

Search Advertising - Europe

Europe

Ad spending in the Search Advertising market in Europe is forecasted to reach €57.25bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 8.29%, leading to a projected market volume of €85.25bn by 2029.
When compared globally, the majority of ad spending will originate from the United States (€127.10bn in 2024).
Within the Search Advertising market, 42% of total ad spending will come from mobile in 2029.
The average ad spending per internet user in the Search Advertising market is estimated to be €76.97 in 2024.
In Europe, Search Advertising in the UK remains a dominant force, with innovative strategies driving growth and competition in the market.

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

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Analyst Opinion

The Search Advertising market in Europe is experiencing significant growth and development.

Customer preferences: Customers in Europe are increasingly relying on search engines to find products, services, and information. They value the convenience and efficiency of search advertising, which allows them to easily access relevant content and make informed decisions. Furthermore, the rise of mobile devices has made search advertising even more popular, as customers can search for information on-the-go.

Trends in the market: One of the key trends in the Search Advertising market in Europe is the increasing adoption of programmatic advertising. Programmatic advertising utilizes automated systems and algorithms to target specific audiences and deliver personalized ads. This trend is driven by the growing importance of data-driven marketing strategies, as advertisers seek to optimize their campaigns and improve ROI. Additionally, programmatic advertising allows for real-time bidding, enabling advertisers to reach their target audience at the right time and place. Another trend in the market is the growing popularity of voice search. With the rise of voice-enabled devices such as smart speakers and virtual assistants, more customers are using voice commands to search for information. This trend presents new opportunities for advertisers to optimize their search advertising campaigns for voice search, by focusing on long-tail keywords and natural language queries.

Local special circumstances: Europe is a diverse region with multiple languages and cultures. This presents a challenge for advertisers, as they need to tailor their search advertising campaigns to different markets and demographics. Advertisers must consider language preferences, cultural nuances, and local regulations when creating their campaigns. Additionally, the European Union's General Data Protection Regulation (GDPR) has had an impact on search advertising, as advertisers need to ensure compliance with data privacy regulations.

Underlying macroeconomic factors: The growth of the Search Advertising market in Europe is also influenced by macroeconomic factors. The region has a strong digital infrastructure and high internet penetration rates, which provide a favorable environment for search advertising. Additionally, the increasing use of smartphones and mobile devices has contributed to the growth of the market, as customers are more connected and engaged with digital content. Economic stability and consumer confidence also play a role in driving advertising spending in the region. In conclusion, the Search Advertising market in Europe is experiencing significant growth and development, driven by customer preferences for convenience and efficiency, as well as the rise of programmatic advertising and voice search. Advertisers must navigate local special circumstances and consider macroeconomic factors to effectively reach their target audience in the region.

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.