German Online Ad Market Appears Low but Stable

16 August 2001

Online advertising in Germany appears to have settled at a low level, but may outstrip more pessimistic forecasts made during the collapse in dotcom fortunes.

Internet adspend totalled DM210 million in the first half of 2001, according to a study by ACNielsen of twenty-six ad agencies accounting for 70%–80% of the online ad market.

A similar performance in the last six months of the year, plus a little extra in the habitually buoyant fourth quarter, could push the annual figure above the DM500m forecast by Forrester Research.

Nielsen’s figures, however, are not an accurate guide to actual adspend as they are based on agencies’ official prices. In reality, these disguised considerable (undisclosed) discounts – some, it is thought, as much as 70% – due to the large volume of unsold online inventory.

Nevertheless, even including such discounts, the estimated total betters the more dire predictions. Companies are still investing in online ads – for example, auto maker Adam Opel recently forged an advertising deal with AOL Time Warner worth up to DM20m [WAMN: 03-Jul-01].

News source: Handelsblatt (Germany)