Still an interesting market !

Though eMarketer announces that the European growth in online ad spending has fallen in 2009. It stays non the less positive.

In more detail :

Web trends in Europe, Internet over TV in june 2010

Here is a study about web trends in Europe, published by Microsoft.

It seems that Internet is going to overtake traditionnal TV in june 2010. Jeffrey Cole explains : ““Broadband has changed everything.  And it’s not speed of access that has made the biggest impact, its having a direct connection that is always on [...]“

50% of all Europeans are now connected to the internet but that there’s a clear north/south divide showing the Nordic countries with an internet penetration rate of 76% versus 45% in Southern Europe.

German Online Sales Rose Last Year

Even with the economic crises, German online sales rose in 2008. Internet users spent €13.6 billion last year which means 19% more than in 2007.

There are two mains factors: further expansion in the number of online shoppers and buyers. (29.5 million people in Germany last year) and an average expenditure per purchase rose 7% to about €49.

Online ads in UK, which ones get attention?

The UK Internet Advertising Bureau (IAB UK), based on polling data from Lightspeed Research has just released a study about UK internet users and online ads. How the content of digital advertisements affects viewer interest ?

It seems that UK users pay attention to online ads when it’s relevant. Forty-three percent said when the ads were useful, and 33% said money-off offers got their attention.

Certain ad formats seem to work better than others. Sponsored links at first, followed by advertising within a page and email advertising.

“The research has found that even though not all consumers click on ads, they are now fully acquainted with most forms of advertising online,” said Sorcha Proctor of the IAB UK.

E-Commerce in Europe

A recent study about E-commerce shows that North Europe has more online buyers. Between 2004 and 2008, online buyers have grown from 22 % to 34%.

The gap is very important between for example UK who had 57% of online buyers, Danemark (59%), France (40%) but Romania and bulgaria had only 4 and 3% of online buyers in 2008 !

Moreover, Tourism and clothes are in the top list of what European have bought in 2008.

E-commerce in Europe by 2014

A study from Forrester published in March, shows that E-commerce is going to grow in Germany, UK and France within the next six years.
E-commerce in France should be really important by 2014. French buyers are going to spend an average of 932 Euros per year compared to Germany (994 Euros) and UK (1703 Euros).

The FEVAD (Fédération du E-commerce et de la Vente à Distance) has also said that E-commerce turnover in France was 20 billion Euros in 2008 and is planning on 30 billion Euros for 2010.

E-Commerce in Europe is growing

According to a report from La Comission européenne, E-Commerce in Europe is growing fastly.
Indeed, one out of three europeans have already bought something online in 2008. Helena Kuneva European Commissioner in charge of consumption, however, regrets that consumers are limited to national markets and largely ignore the online merchants in other European countries.

The number of Europeans who have purchased at least one article from Internet, has jumped from 27 % in 2006 to 33 %t in 2008 to reach 150 million consumers. Especially in Denmark (59%), Britain (57%) and the Netherlands (56%) where buying online is extremely popular. On the other hand, in Belgium, only 21 percent of consumers have purchased goods or services over the Internet.

Consumers are primarily directed to online stores for booking travel and hotels. Sports items, clothing, books, toys, tickets, movies, music and software are also popular.
Customers, however, are largely restricted to the domestic market. In 2008, only 7 percent of consumers have purchased online products or services in another European country. According to Helena Kuneva, it’s mainly due to a different language and the fear of not receiving the product.

French people are more and more using Internet

According to Nielsen Online French people are more using Internet than other Europeans. They are actually more online every day.

The digital media universe in France grew 15% between january and november 2008, from 34.85 million to 40.13 million people. Moreover 29% of them are online more than 16hours a week. In addition, 58% are now buying online.

In the mean time, Online buyers in Europe are held by Germany where 73% of people using internet are buying online.

3,8 billion euros for the Holiday Season on the European online market

Over the first three weeks of November, just before Thanksgiving and the launch of Christmas holiday season, online sales in the US underwent a decline of 4% according to comScore survey results. Led from November 1st to the 23rd, the study evokes 8,19 billion dollars of sales, against 8,51 billions in the same period last year. Never still the American e-commerce had registered such a fall of sales.

Looks like the US don’t have a wide enough market of consumers any more.

Therefore, considering the exchange rate which remains favorable to the Euro, although the economic situation is similar across the Atlantic, on-line traders hope that the coming holidays will smile to them, with an amount of sales estimated at 3,8 billion euros, according to a Médiamétrie/NetRatings study, against 3,1 billion last year.

In conclusion, it would be profitable to both the US and Europe to broaden their consumer range.