PricewaterhouseCoopers on Overseas Spending: Display Down, Search Up

PricewaterhouseCoopers predicted that total Internet ad spending in Europe, the Middle East and Africa will rise to $25.2 billion in 2013 from $19.4 billion in 2008, while online display will drop to $4.8 billion from $5.1 billion during the same period. PwC also sees display-ad spending slipping to $4.4 billion in 2013 from $4.8 billion in 2008, AdAge.com reported.

According to AdAge.com, PwC sees search as a steady growth component. AKQA U.K. head of media and search Neil Eatson told AdAge.com, “I say it to so many of my clients: The search engine is the new home page for brands and businesses. People just don’t see home pages anymore, because 80% of Web use begins with a search engine. Google, MSN and Yahoo! really do enhance the user experience, so more and more clients see search as the most cost-effective form of advertising.”

Besides search, “Social media, when done well, is very powerful,” Weapon 7 CEO Steven Hess told AdAge.com. “Video carries more information more quickly, so it’s more effective, but the brand needs to encourage the user to consume it.”

PwC entertainment and media senior manager Eva Berg-Winters seemed to agree with Eatson and Hess, telling AdAge.com, “Because of the downturn, there’s a shift in business models, and search is seen as the best return on investment. There’s also a strong transition to classified, which is doing OK, even though it’s based on weak sectors like jobs and auto. But online display is still in its infancy. Post-downturn, we expect search and classified to hold up and for display to enjoy growth.”

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