Video advertising to boom in next five years predicts Forrester

Video will be the fastest growing interactive advertising format in Europe over the next five years, with advertisers spending more than €1bn (£860m) on the medium, Forrester is predicting.

BBC iplayer
BBC iplayer

In its latest European online advertising forecast, Forrester claims that overall interactive marketing spend in Western Europe will hit €13.9bn (£11.9bn) by 2014.

It adds that in the coming five years, growth rates for search spending will gradually slow while display ad spending, driven by new rich ad formats, will accelerate.

Other findings from the report reveal that European search marketing spend will grow by 11% in 2010, down from 15% annual growth last year and display ad spending will grow by 4% this year, up from only 1% year-over-year growth in 2009.

Paid search in the UK grew just 7% in 2009, after growing 21% in 2008; every other Western European paid search market grew at least twice as quickly last year.

Forrester interactive marketing analyst Nate Elliott says: “Because display ad pricing bore the brunt of the recession, display advertising offers good value for European interactive marketers – most notably video ad inventory. If you’ve been thinking about experimenting with the format, you can do it today for half the price you might have paid last year.”

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