Internet advertising again leads the Polish advertising market in its growth. While the whole advertising market in Poland is experiencing a serious slowdown, Internet advertising is growing at an impressive rate. But the general increase of Internet adverting fades when compared to spending on SEM!
Recently IAB Polska presented the results of the AdEx research conducted by PwC. AdEx is a quarterly research into the Polish Internet advertising market. The results show that in the first half of 2011 the Polish Internet advertising market was up 25% from the first half of 2010. In comparison, at the same time the whole advertising market grew only 5%. It should then come as no surprise that Internet marketing accounted for 62.5% of the whole growth of the advertising market at that time!
In the first half of 2011, Polish advertisers spent 210 million EUR (942 mln PLN) on Internet advertising, as compared to 166 million EUR (741 million PLN) from the same period last year.
Thanks to such a quick growth we moved from the 10th to the 8th position in the ranking of the European countries with the highest share of Internet advertising in the whole advertising pie. With our 18% we just overtook France and Finland:
The rate of the growth is even more striking when you think that the amount spent this year after two quarters took took three quarters to work for two years ago!
If you find the growth rate of Internet advertising impressive, then what words would you use to talk about SEM? SEM clearly pulled the Internet advertising market, though e-mail marketing was not any worse:
It is not surprising that the share of spending on SEM in the spending on Internet marketing in general is growing fast. It is happening at the expense of the still biggest yet most sluggish player – display advertising:
As the diagram above shows, even though in the second half of 2010 our SEM industry lost by 13 percentage points to the leader, in the last six months the loss decreased to as few as 6 percentage points. That means we made up for the 7 points within six months! The 34% share in the Internet advertising market means that advertisers spent as much as 71,5 million EUR (320 million PLN) on SEM in the first quarter of 2011!
It is worth pointing out that the quoted amount does not include spending on SEO or the costs of running PPC campaigns.
The following diagram shows the Internet market as divided among advertising types:
… and spending on Internet advertising in different industries: