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European online marketing to top €16 bln in 2012

Spending on online marketing in Europe will double in the next five years, from around €7.5 billion in 2006 to more than €16 billion ($22 billion) in 2012, according to a new report by Forrester Research Inc.

In five years, online marketing – including email, search, and display advertising – will represent 18% of total media budgets. The forecast is based on data from Forrester's Consumer Technographics surveys of more than 25,000 consumers in France, Germany, Italy, the Netherlands, Poland, Spain, Sweden, and the UK and interviews with 24 major European marketers. The reason for this shift in spending is simple enough: audience and attention are moving online.

According to Forrester, 36% of online Europeans say that they watch less TV because they're online. And trust in many types of advertising is eroding: 67% of online consumers believe that advertisers don't tell the truth in ads. At the same time, online consumers don't seem adverse to the kind of targeted advertising that the online channel can deliver: 34% of online consumers say they don't mind ads if they relate to their interests; 40% trust price-comparison sites; and 36% trust online product reviews from other users. This opens the doors to new online marketing forms like word of mouth, email campaigns, and blog advertising. (