German online ad revenues to rise

11 March 2010

BERLIN: Online advertising expenditure will continue to rise in Germany this year, building on the momentum gained over the course of 2009.

According to figures from OVK and BVDW, two industry bodies, internet ad revenues stood at €4.1 billion ($5.6bn; £3.7bn) in the European nation last year, up by 12% on an annual basis.

Within this, display formats such as banners, skyscrapers and video were responsible for €2.2bn of sales, with search on €1.6bn, and networks on €300 million.

Comscore, the online research firm, has previously estimated that Google holds more than 90% of the German search market, with ICQ on 1.8%, Bing on 1.7%, and Yahoo on 1.5%.

By category, the IT and office supplies segment directed the largest proportion of its adspend to the net in the last 12 months, at 26% in all.

This figure fell to 25.7% for the services sector, 18% for telecoms companies, and 14.2% for financial brands, but reached a low of 7.6% for automakers, and 2% for media and entertainment providers.

While the overall share of revenues attributable to the web climbed by 1.7%, to 16.5%, last year, the OVK/BVDW report said it remained behind both newspapers, on 21.4%, and television, on 37.8%.

Looking forward, they predicted online budgets would improve by a further 14% in 2010, to €4.7bn, with most of this growth going towards display, as search remained largely flat.

The rising popularity of social networking portals and the mobile internet are expected to be among the key drivers of this process.

Video advertising is also likely to enjoy an improved performance going forward, following up growth of almost 160% last year with rapid expansion, as it almost trebles in value, to €137.5m, by 2013.

Data sourced from BVDW; additional content by Warc staff