Greece's Digital Advertising Market in 2023: Growth, Challenges, and Comparative Insights with Europe

IAB has published the Europe AdEx Benchmark Report for 2023, covering the digital advertising market across 29 European countries. The total digital advertising market in Europe was valued at €96.9 billion in 2023. The market saw an overall growth of 11%, with significant contributions from the Balkans and South East Europe. Turkey led the way with a 50% increase, followed by Hungary at 27.6%, and Ukraine at 25.2%. In comparison, the US digital advertising market grew by 7.3% last year, reaching a total value of €245 billion.

In absolute terms, the largest market in Europe remains the United Kingdom, with digital ad spending exceeding €34 billion, followed by Germany at €13.4 billion, France at €9.5 billion, Spain at €5.2 billion, and Italy at €4.8 billion. Greece ranks 20th with €232 million, while Serbia, Bulgaria, and Slovenia hold the last positions with €103 million, €102 million, and €78 million respectively. Compared to 2022, Greece is fifth in digital advertising growth, but when adjusted for inflation, it ranks second, only behind Turkey.

Display Advertising: Display is the largest medium (including or excluding social media), but social media is the fastest-growing segment. In Greece, €106 million was spent on display in 2023, making it the seventh lowest market, with an annual increase of 20%, the fifth highest in Europe. Despite the significant increase, the share of display in total digital ad spend remains the lowest in Europe at 33%, compared to the average of 49.9%. Sweden follows with 38%.

Social Media: Similarly, Greece ranks third from the bottom in social media spending. The share of social media in display advertising is 31%, compared to the European average of 48.3%, with Ireland leading at 75.7%.

Video Advertising: Video accounts for 26.1% of display spending in Greece, below the average of 46.1%, with Ireland again leading at 56%.

Digital Audio: Greece ranks second last in digital audio, with only 0.4% of ad spend allocated to this medium, compared to the European average of 3.4%.

Programmatic Advertising: In Greece, programmatic buying constitutes 36.4% of the market. Ukraine leads with 85%, followed by the UK at 84% and Serbia at 78.8%.

Search Advertising: Greece excels in search advertising, which accounts for 65.4% of total digital ad spend, the highest in Europe. Sweden is second with 55.2%, while the average is 43.1%.

Classifieds and Directories: Classifieds account for 1.6% of digital advertising in Greece, lower than the European average of 7%.

The overall picture of digital advertising in Greece aligns with my intuitive understanding from conversations with colleagues and job postings. The PPC/performance segment dominates, with television still holding a significant position. Unfortunately, investment in new media such as audio and in brand/awareness through display is still considered a luxury. The low percentage of programmatic buying highlights the distortions in the Greek market, as emerging markets like Ukraine, Serbia, and the Czech Republic lead in programmatic adoption. This is also evident from the lack of a DV360 reseller for the Greek market.

Challenges and Distortions in the Greek Market

The Greek media market faces significant challenges and distortions, primarily due to the oligopolistic nature of the industry, where a few large groups control the most important media outlets in radio, television, and print. Unlike markets such as the United Kingdom, which also have major media conglomerates, the concentration across all channels in Greece is unparalleled. In Greece, a single media group can offer advertising opportunities across television, radio, newspapers, and websites, and even extend to sports clubs and other businesses owned by the same conglomerates. This makes investment in programmatic and new digital media financially unviable.

Lack of Regulations and Controls in Greek Digital Advertising

Another major issue in Greek digital advertising is the absence of rules and regulations. Leading websites often post paid advertorials without any disclosure or advertising labels, including for tobacco products, which are generally prohibited. Additionally, fear, uncertainty, and doubt (FUD) advertisements for water filter companies on TV and dietary supplement ads citing medical conditions without scientific backing are rampant. This lack of basic operational and ethical standards undermines the credibility of the market. Although I won't name specific examples here, these issues are well-known. Unfortunately, due to the harsh and difficult working environment in Greece, these malpractices can only be safely reported by those working abroad, who are not at risk of being blacklisted from the local job market.

Economic Environment and Market Structure

The poor economic environment, combined with general oligopolies and monopolies in Greece, exacerbates the problem. Most businesses cannot afford to allocate funds for paid branding and awareness campaigns, resulting in paid media being exclusively focused on low funnel performance-driven PPC campaigns.

A Positive Note: Skilled Workforce

On a positive note, which is not reflected in the IAB report, Greece boasts a highly trained and experienced workforce in the digital advertising sector. Due to the challenges mentioned above, most professionals in Greek digital advertising are adept at handling 3-4 specialized roles without corresponding compensation. This presents an opportunity for media agencies looking to expand within the European Union at a lower cost but with specialized personnel. Several software companies have already taken advantage of this, and we may soon see similar moves in the advertising space.