Top Digital Advertising Trends in Europe for 2023

The current economic climate in Europe presents significant challenges for businesses. Rising inflation, the ongoing effects of the Russia-Ukraine war, and broader political and commercial disruptions have strained households and companies alike.

With a possible recession looming, businesses are grappling with decreased consumer spending and intensified competition for market share.

In this turbulent environment, digital advertising is becoming more critical than ever for businesses striving to stand out and connect with buyers. This blog explores the top digital advertising trends shaping the European market in 2023 and what they mean for advertisers, agencies, and resellers.

1. Search Advertising: Renewed Focus on Search Over Display

As digital ad spending continues to grow, search advertising is emerging as a priority for advertisers in 2023. According to eMarketer, Western Europe is predicted to see a 9.2% increase in search ad spending, outpacing the overall 8.9% growth in digital ad spending.

Key Drivers

• Retail Media Networks: Retail media spending is surging, with expected outlays of €25 billion by 2026. Brands leveraging retail media platforms can benefit from better ad placements, digital promotions, and access to validated sales data and loyalty programs.
• Search Engine Dependence: Despite the rise of other advertising channels, search engines remain the go-to resource for consumers researching products or services, making search ads essential for capturing intent-driven traffic.

Takeaway: Brands must refine their search advertising strategies to capitalize on this trend, focusing on keyword optimization, compelling ad copy, and enhanced targeting.

2. Social Media Advertising: Diversifying Beyond Facebook

Social media continues to be a cornerstone of European advertising strategies, driven by a growing audience across various platforms. While Facebook usage is projected to decline in the region (representing just 8.7% of global users in 2023), other platforms like Instagram, Snapchat, TikTok, and Twitter are gaining traction.

Trends to Watch

• Platform Shifts: Western Europe is expected to hold a double-digit share of global users on Instagram, TikTok, Snapchat, and Twitter.
• Platform Uncertainty: Concerns over technical malfunctions and content moderation on Twitter and the decline in Facebook usage following its ban in Russia signal the need for caution when investing heavily in these platforms.

Takeaway: Advertisers should diversify their social media strategies, prioritizing platforms with rising user bases while monitoring platform-specific challenges.

3. Video Advertising: Dominating Ad Spend and Engagement

Video advertising is one of the fastest-growing trends in Europe, driven by the popularity of platforms like YouTube, TikTok, and Instagram. Nearly 40% of all display ad spending in Europe goes toward video ads, with mobile video formats leading the charge.

Key Insights

• Budget Allocation: Digital media buyers allocate an average of 36% of their ad budgets to video advertising, with mobile web video formats receiving the highest investment.
• Growth Projections: Online video ad spending is set to rise significantly, with total spending expected to hit $95 billion by 2024.

Takeaway: To capitalize on video’s growing popularity, advertisers should focus on short, engaging video formats optimized for mobile viewing.

4. Programmatic Advertising: Leveraging Data-Driven Campaigns

Programmatic advertising continues to gain momentum in Europe, offering advertisers a more efficient and data-driven way to purchase ad space in real-time.

Emerging Opportunities

• Connected TV (CTV): The shift from traditional linear TV to online streaming has propelled CTV ad spending, which grew by over 56% in 2021 and is forecasted to expand by 35% in 2022.
• Voice Integration: While previously underutilized, voice advertising is beginning to show potential as an emerging growth area.

Takeaway: Programmatic advertising enables advertisers to target audiences with precision and adapt campaigns quickly. CTV and voice integration offer new avenues for engaging consumers in Europe’s evolving media landscape.

5. First-Party Data and AI: Privacy-Driven Innovation

Since the implementation of the General Data Protection Regulation (GDPR) in 2018, Europe’s advertising ecosystem has been undergoing a seismic shift. Advertisers are increasingly moving away from third-party cookies, focusing on first-party data collection and privacy-conscious advertising strategies.

What’s Changing

• First-Party Data: Businesses are investing in Customer Data Platforms (CDPs) to consolidate and utilize first-party data for precise targeting.
• Contextual Targeting: With less reliance on third-party cookies, ads are being placed based on the context of the content a user is consuming, fostering trust and relevance.
• AI Adoption: While AI is slowly gaining traction in Europe, its adoption rate (23%) lags behind other regions. Larger enterprises are leveraging AI to deliver personalized experiences and streamline ad operations.

Takeaway: Resellers and advertisers must prioritize data privacy, leverage first-party data, and explore AI tools to stay ahead in the evolving European regulatory landscape.

What These Trends Mean for Advertisers and Resellers

The digital advertising landscape in Europe is rapidly evolving, shaped by economic pressures, shifting platform preferences, and changing consumer expectations. To stay competitive, advertisers and resellers must:

1. Offer Multi-Channel Campaigns: Combine search, social, video, and programmatic strategies to create cohesive campaigns that maximize reach and engagement.
2. Adapt to Privacy Regulations: Embrace first-party data strategies and ensure compliance with GDPR to build trust and maintain effectiveness.
3. Invest in Innovation: Stay ahead of trends like CTV, voice advertising, and AI to capitalize on emerging opportunities.

In 2023, success in European digital advertising will hinge on adaptability and innovation. By understanding these trends and leveraging them effectively, resellers and advertisers can navigate challenges, capture market share, and drive measurable results.

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This blog was originally published on MatchCraft.com and has been migrated to Vendasta.com as part of Vendasta's acquisition of MatchCraft. We’ve preserved the content to ensure you continue to have access to the valuable insights and information shared here.