Internet adspend to increase in Germany

02 March 2012

BERLIN: Online advertising expenditure remained largely flat in Germany in 2011, but is expected to enjoy double-digit growth in 2012, according to a report.

Figures from OVK, a unit of digital industry body BVDW, suggested that internet adspend stood at €5.7bn in 2011, measured against €5.4bn in 2010.

Within this, display revenues were essentially unchanged on €3.3bn. By contrast, paid search logged an 11% improvement to €2.1bn, and affiliate network returns jumped by 10% to €374m.

Currently, the web is the second largest advertising channel in Germany, taking 19.6% of budgets, an expansion from 19.2% on an annual basis in 2011.

Television retains a lead role with a 38% share, while newspapers hold 19% of the market, albeit measured against the total of held in 2007, when the web was on 12.1%.

Looking ahead, OVK predicted that internet advertising expenditure would increase by 11% in 2012, to €6.3bn.

Display is anticipated to witness a 12% surge to €3.7bn, while search is up by 8% to €2.2bn and affiliate networks grow by 11% to €415m.

Paul Mudter, OVK's chairman, suggested that the organisation's forecast for this year was somewhat "moderate" as a result of the global economic situation and crisis in the eurozone.

Data sourced from OVK; additional content by Warc staff