European digital ad spend rose 11% in 2023

The European digital advertising market is now worth €96.9bn, the highest level recorded, according to the IAB Europe AdEx Benchmark Report 2023. 

The rate of growth outstrips that seen in the US over the same period; the US saw 7.3% growth in 2023. 

The annual AdEx Benchmark Report covers 29 European markets, 13 of which saw double-digit growth. The report shows the digital advertising sector has shown resilience in the face of a turbulent economic and geopolitical environment. 

Turkey was the fastest-growing market, posting a 50% rise in ad spend, but this can largely be attributed to inflation. The other biggest gainers were Serbia (up 27.6%), and Ukraine ( 25.2%). 

Video, connected TV (CTV), and audio were among the fastest-growing formats, the report shows. Spending on video advertising was up 20.9%, CTV was up 23.5%, social ad growth grew by 18.2%, display grew 12.7%, and video outside social was up 15.0%.

Daniel Knapp, chief economist, IAB Europe, said: “Digital advertising defied all odds in 2023. This can be attributed to interest rates improving, and the economy stabilising, giving advertisers greater confidence once more. 

“While many remained cautious, we saw an increased recognition for more sustained spending, as brands looked to build presence back up and maintain a share of voice in the market. 

“This period also saw a return of new companies and SMEs entering the market. As businesses have transformed to become increasingly more digital, advertising has evolved from a siloed function to a more integral part of the overall marketing strategy, helping to fuel 2023 growth.”

The UK, Germany, France, Spain, and Italy make up 69% of total digital ad spend in Europe. The study also covers Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lithuania, the Netherlands, Norway, Poland, Romania, Serbia, Slovakia, Slovenia, Sweden, Switzerland, Turkey, and Ukraine.