The Value of Digital Advertising

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The Value of Digital Advertising

Europe Online: An Experience Driven by Advertising

An in-depth study by GfK shows how most Europeans’ use of the internet depends on data-driven advertising:

  • Thanks to digital advertising, 68% of Europeans have never paid to access websites, online news or core internet services like email – and this rises to 75% among those on lower incomes
  • 69% of Europeans are willing for their browsing data to be shared for advertising, in order to access digital content such as news articles and online video, for free
  • 92% would stop using their favourite site or app if they had to pay for it
  • 80% of internet users say they prefer free sites with ads to paying for content
Read the full report here

The Economic Contribution of Digital Advertising in Europe

IHS Markit updated its analysis of the economic contribution that digital advertising as a whole makes to the EU. This provides important context for the analysis of data-driven advertising’s value. This analysis used publicly available data, including Gross Domestic Product (GDP) and employment data. It includes digital advertising’s direct contribution through Gross Value Added, as well as its indirect, induced and wider effects. IHS Markit identified the contribution that digital advertising makes to revenue growth for advertisers, and also explored how different digital industries depend on advertising.

Key findings include:

  • Digital advertising is the single largest advertising medium in Europe, representing 37.2% of all advertising revenue
  • In total, digital advertising adds €526 billion to the EU economy each year
  • 6 million jobs in the EU are supported in some form by digital advertising
  • Automation and the use of data in advertising is growing the number and diversity of the jobs it provides
  • Online advertising represents 81.5% of publisher revenues in the EU, and 51.9% of the revenues for online video platforms
Read the full report here

The Economic Value of Behavioural Targeting in Digital Advertising

The research agency IHS Markit used interviews with advertisers, publishers and technology companies to help identify the role of data in digital advertising. With its proprietary database of advertising trends and econometric modeling techniques, it predicted the likely impact of the proposed ePrivacy Regulation, which in the current form will effectively prevent the use of behavioural data for ads.

Key findings include:

  • Digital advertising in the EU generates annual revenues of €41.9 billion, with growth of 12.3% year-on-year
  • Behavioural targeting is used in 66% of all digital advertising and contributes to 90% of digital advertising growth
  • Data-driven advertising is over 500% more effective than advertising without data, and increases the value of advertising units by 300%
Read the full report here

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