BERLIN: Online adspend rose by more than 25% in Germany last year, helping the medium overtake newspapers as the country's second largest advertising channel.

OVK, part of digital trade body BVDW, reported that web ad revenues climbed 26%, to €5.4bn ($7.5bn; £4.6bn), in 2010.

This took the net's share of the media mix to 19.2%, an annual improvement of 2.7 percentage points.

As such, the web surpassed newspapers on this metric for the first time, as press titles recorded a contraction from 21.4% to 19% in its overall proportion of advertising outlay.

Internet display ads logged a 35% uptick in demand, posting €3.2bn across the 12 months as a whole, while search leapt 15%, generating €1.7bn, and affiliate network returns grew 10%, hitting €339m.

"It seems many advertisers have rediscovered conventional online advertising after so many discussions moved in the direction of performance marketing two years ago," said Paul Mudter, OVK's chairman.

"We also note that the resources for online campaigns are increasingly coming from the marketing budget, rather than from the sales budget."

Looking ahead, OVK predicted brands' internet expenditure would rise 16% in Germany in 2011, taking it past the €6bn mark.

Data sourced from BVDW; additional content by Warc staff