Europe’s online video advertising market worth €1.2 billion in 2013

By Sarah Kiefer on Jun 20 2014 at 9:00 AM

Europe’s online video advertising market passed the €1 billion mark for the first time in 2013 and was worth €1.2 billion last year. IAB Europe announced that the total advertising market was worth €27.3 billion, with mobile accounting for over 10% of that.

In a separate report PwC announced that it expects the growth in online video advertising in the UK to continue, forecasting nearly 25% growth every year for the next 5 years. They expect the market to be worth £717m in the UK by 2018, making it the fastest growing of all forms of advertising.

The UK market is also outpacing the US in terms of mobile access and smartphone penetration. In fact mobile now represents 30% of all internet usage including 18% from smartphones and 12% from tablet.

News is apparently one genre that is leading this trend. 24% of Britons cite smartphones as their main way of accessing news, up 11% on last year and 16% use tablets as their main source, also up 11%. What’s more the death of traditional media outlets may have been greatly exaggerated because more than 50% of UK respondents claim they rely on a traditional, mainstream news outlet and only 16% use online-only sources. The Sun and The Times have the most popular subscription sites. If you’re wondering how The Times uses online video to help power the popularity of their subscriptions, here are 5 tips from Global Editor Lucia Adams.

Youth audiences in Germany are increasingly deserting traditional TV, and one company they are turning to instead for entertainment is Mediakraft, one of the largest online TV networks in Europe. In this in-depth interview their CEO explains how the company works for viewers and local content creators.

In the UK the BBC and Channel 4 are also shedding young viewers fast, with their channels losing 12% of their viewers aged 25-34 over the last 3 years. This does not include mobile and tablet viewing however. Could it be that young viewers make up the bulk of the 45% of viewing the BBC iPlayer gets on these devices?

ITV, Channel 4 and the BBC have decided to react to changing video consumption habits by working together to launch a service dubbed “Freeview Connect” to allow smart TV users to access their catch-up services.

Three Dutch broadcasters have also decided they’re better off working together on new services. They have launched a new ad-free SVOD service in the Netherlands. NLziet will offer more than 29,000 episodes of locally-focused content for a monthly subscription cost of €7.95.

And Netflix has finally put paid to the rumours and officially announced what many had long suspected - they will launch in 6 new European countries this year. France, Germany, Austria, Switzerland, Belgium and Luxembourg will all get access to the streaming service.

Meanwhile Pay TV has really begun to take off in the Middle East. Revenues will top $8 billion by the end of this year in the region, up 65% since 2010. Satellite continues to be the dominant form of delivery.

While every TMT analyst in Britain has been obsessing over the fight between BT and Sky, a young pretender has quietly been growing fast. Talk Talk is now the UK’s fastest growing Pay TV provider, offering a cheaper IPTV-powered option for those who want great movies and kids’ content.

With the mantra “content is king” on everyone’s lips consolidation is happening fast in the European TV production business, with Murdoch announcing a joint venture between Shine, Endemol and Core Media. Meanwhile Liberty Global and Discovery Communications have bought All3Media and ITV bought Leftfield, makers of Pawn Stars. ITV’s content strategy seems to be paying off as they announced a strong quarter, cementing their place as the second largest VOD broadcaster in the UK after the BBC.

And finally, a Deloitte study has confirmed what we long suspected: the UK is a nation of binge viewers. Almost a quarter of britons like to like to watch several episodes back to back and younger and richer people are even more likely to do so. Having a Pay TV subscription in the UK also makes it more likely that you will subscribe to a streaming service. The same study showed that Pay-TV subscribers were 50% more likely to also pay for services like Netflix and Amazon Prime.

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