The Data Digest: Why Pinning Isn’t Winning In Europe

Anjali Lai

In her recent report, my colleague Reineke Reitsma revealed that European consumers interact with a diverse suite of social networking sites, with Facebook and YouTube leading in terms of consumer engagement. Pinterest, however, is an outlier: European consumers demonstrate minimal interaction with Pinterest compared with both other social media sites and their US peers. According to Forrester’s Consumer Technographics® data, 18% of US online adults regularly visit the website but only 2% of European online adults across the UK, France, Germany, Italy, and Spain visit Pinterest once a month or more:

 

 

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Social Media Spending In Western Europe Is Expected To Reach 3.2 Billion Euros By 2017, But There Is A Catch

Jitender Miglani

The European economy is still struggling for growth after the global recession. While overall GDP growth was positive in 2010 and 2011, it again turned negative in 2012. A slow economic recovery is projected through 2017, but growth is not expected to reach 2007 levels during the next five years. Despite this weak macro-economic environment, spending on social media has continued to grow in Europe and will continue to see double-digit growth over the next five years as well. Why?

  1. The continuous shift of ad spending from traditional media to online media. The megatrend of the past decade — advertising dollars shifting from offline to online media — is expected to continue in this decade as well. Internet advertising’s share of overall advertising spend grew from 1% in 2001 to 22% in 2012 for Western Europe. There still exists a significant gap between the time spent online by consumers and the share of online spend in overall advertising spend, but this gap will decrease over the next few years with the continued shift in spending.
  2. Social media’s increasing share of online ad spend. Currently, display ad spending is nearly four times higher than social ad spending in Western Europe, and search advertising is eight times larger. However, social will experience faster growth than display or search in the coming years. Social’s share of overall online spending will increase as companies spend more to engage with consumers on social media platforms for marketing and sales initiatives.
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