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Online display ad spend in Europe to hit €12bn by 2019, says Forrester

Online display ad spend in Europe will see a 10.3 per cent hike to €12bn (£10bn) in 2019, according to Forrester’s latest five-year forecast.

The expected growth has been attributed to the rise in mobile display and increasing popularity in video and media-rich ad formats in European markets, with tablet ads predicted to spike 40.5 per cent to account for a third of total online display revenue by 2019, according to the report.

In the UK, online display ad revenue is set to grow at 9.1 per cent annually – the slowest growth rate in Europe, which Forrester has attributed to the fact this market is the most advanced and therefore has naturally slowed and growth opportunities are harder to find.

Meanwhile, PC display revenue is expected to take a major hit from this year onwards, and is expected to drop through to 2019 with ad spend redistributed to tablet-based ads instead. Video ads will see a 20 per cent rise by 2019.

Germany will remain the second largest market for online display, with the overall display market predicted to grow 9.1 per cent annually by 2019, while France takes third place with an annual growth rate of 11 per cent, according to the report. In both countries tablet revenue will grow to represent nearly a third of total online display in the next five years.

In the US, online display ads will grow at 13.7 per cent annually over the next five years.

Forrester researcher Samantha Merivlat said the growth in tablet display is “taking off full speed” in virtually all European markets.

"With their larger screen real estate and growing role in customers’ path to purchase, tablet-based ads will grow at a 40.5 per cent CAGR over the next five years, attracting a third of total online display revenue by 2019," she said.

Ad spend on smartphones will continue to grow at 20.5 per cent annually over the next five years across Europe. However, the growth curve is starting to plateau in the UK, Norway, and the Netherlands, where the bulk of new investment will be directed at tablets.

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