Facebook's drive to monetise users in Europe
Over the last 10 years, the online advertising market has grown considerably across the EU, overtaking the TV advertising market in terms of revenue. From 2007 to 2017 online ad revenue grew more than 3-fold to nearly $36bn, while TV ad revenues decreased by 4% to $28bn. The online advertising business has especially taken hold in the United Kingdom and Nordics where online ad revenues per user have already overtaken TV advertising revenues per viewer. It is now a matter of when, not if, other countries will follow suit.
Needless to say, this rapid growth is largely down to the two main online giants – Google and Facebook. Globally, Google and Facebook dominate the online advertising market, with a significant majority market share between them. Ampere estimates that of global online ad-spend, the groups take approximately 70%, up from just over 50% in the last four years alone. In some countries, the average Facebook user produces more revenue for Facebook than TV viewers do for some channels. Ampere has aimed to reconcile regional market studies from online advertising industry bodies and regulators, with agency market sizings and Facebook’s financial data to estimate the amount of money that Facebook could be generating across key EU markets. From this, we estimate that Facebook was making as much as $5 per month per user in the UK by the end of last year, and approximately $2 in Mediterranean markets such as Italy and Spain.
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