European Ad Expenditures Up in August

Total European online advertising revenue for the month of August nearly $110 million, up 11 percent from July’s total, according to data collected by AdZone Interactive.

Almost $65 million of the revenue was generated by UK sites, but the increase for UK sites was only 1 percent over July, while the increase for the rest of Europe was 31 percent. AdZone tracked 452 sites from the countries of Austria, Denmark, France, Germany, Italy, Spain, Sweden, Switzerland, and the UK.

According to Forrester Research, the UK’s online advertising market is Europe’s largest, not, as some had believed, Germany.

In June, all online advertising in Germany totaled DM 16,230,000, and Bertelsmann was far and away the country’s leading advertiser spending DM 1,244,000 — 8 percent of the total market. The second highest German online advertiser was Primus, spending DM 473,000 Bertelsmann was also the UK’s biggest online ad spender at DM 565,000 in June, but its percentage of the market was far lower at 2.3 percent.

“The German online ad market is significantly smaller than we thought,” said William Reeve, group director of European Data Products. “German media companies and advertising agencies have greatly exaggerated the size of the market estimating that firms would spend upwards of DM 500 million on online advertising this year — but that figure will be much nearer DM 300 million. In the UK, by contrast, Forrester expects online advertising spend to be nearer DM 400 million.”

One reason for an exaggerated sense of the German market’s size, according to Forrester, lies in the assumptions that companies would launch pan-European online ad campaigns — which have so far not materialized. Also, financial-services advertising in Germany has not been as robust as it has in the UK, where there has been fierce competition between traditional banks and online entrants to the market. While Germany has some of the same competition, its state-run banks do far less advertising than incumbents in the UK.

“Advertising is still relatively local, even on the Internet,” Reeve said. “The same sort of logistical problems that stymie cross-border offline campaigns also apply to the online world. Also, the media market in Germany is small enough that estimates of the market’s size came from the biggest online publishers getting together and comparing the kind of money they were spending on online ads. Their estimates were more about what everyone wanted the market to be, rather than what it really is.”


Top 10 Brands on European Sites
August 2000
Rank Brand Expenditure Impressions
1. Zonejeux.com $6,481,700 634,423,900
2. Virginmoney.com $3,313,000 74,069,400
3. Autosport.com $2,687,600 60,537,300
4. Amazon.co.uk $2,149,300 59,970,100
5. Yahoo.com Europe
Shopping
$1,949,000 49,973,900
6. Yahoo.com Chat UK $1,694,800 50,976,800
7. Insure.co.uk $1,596,900 40,946,500
8. Yahoo.com Mail $1,485,700 38,093,600
9. SAT1.ch $1,272,000 19,874,900
10. ESPN.go.com $1,022,700 36,525,200
Total $23,652,700 1,065,391,600
Source: AdZone Interactive

Top 10 European Sites for Ad Revenue
August 2000
Rank Site Revenue Impressions
1. francite.com $6,289,300 628,927,400
2. uk.yahoo.com $5,340,500 136,935,700
3. iii.co.uk $4,593,600 102,079,300
4. sports.com $3,412,000 72,596,500
5. freeserve.com $3,081,100 68,467,800
6. uk.chat.yahoo.com $3,075,700 78,864,500
7. multimania.fr $2,854,000 40,946,500
8. uk.shopping.yahoo.com $2,539,200 65,106,700
9. uk.weather.yahoo.com $2,220,400 88,816,200
10. uk.sports.yahoo.com $2,184,700 56,019,100
Total $35,590,500 1,440,511,000
Source: AdZone Interactive

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