As Economy Flags, Will U.S. Shops Look to Europe?

Interactive budgets are growing way faster in Europe than they are in the U.S. ZenithOptimedia forecasts spending will accelerate approximately 95 percent in Western Europe between 2007 and 2010, compared with 40 percent here. Central and Eastern European ad spending will grow even faster.

So it’s ever more important for U.S. based agencies to develop strong footholds there, especially as the economy flags this side of the Atlantic.

That’s just what iCrossing’s done with the acquisition of Germany-based 3GNet, whose clients have included eBay and ESPRIT, and O2 Germany. The agency, which offers paid search, SEO and affiliate marketing services, will be iCrossing’s first outpost in mainland Europe. It already has a presence in the U.K.

3GNet was founded in 1999. Its 70-member team brings iCrossing’s headcount to 620 in 15 offices. “Their understanding of the European search market, particularly in leveraging affiliates, as well as their technical expertise, makes them a perfect fit for iCrossing,” CEO Jeffrey Herzog said in a statement.

Is your agency engaged in business development in mainland Europe? If so, I’d like to hear about it.