As Germany’s economy grows, so does its online ad spend.
Last August, The Economist released an article titled “Germany’s Surprising Economy” (August 20th, 2005) which highlights the country’s revival of its business and consumer confidence as well as domestic demand.
It is no surprise then, that Germany’s online ad spend is growing exponentially. According to Horizon.net, German online advertising spend increased 157 percent from 2003 to 2004. With the exception of the UK, Germany is leading the rest of Europe in terms of online ad spend. As Internet adoption increases and more supply of inventory become available, there will be a drastic shift of budget to performance networks that have built a trusted brand and that can deliver results.
This is different in Germany where the majority of publishers are looking to have their sites exclusively represented or sold on a flat CPM. German advertisers are also looking to place more traditional branding campaigns with the primary objective being to drive traffic to their websites.
Despite its growing online ad spend, the German market faces it challenges. Driving a high volume of actions for our German advertisers due to their hesitancy to develop new creatives for a campaign and integrate the necessary tracking technologies is at times challenging. A lot of German agencies are asking for performance campaigns such as CPC, CPL and CPA, but are not willing to integrate the critical components that allow a performance network to yield the desired results.
As Germany’s economy grows, naturally- consumer/domestic demand grows. This will force German advertisers to place significance in optimizing campaigns. Both domestic and international advertisers looking to penetrate the German market are highly encouraged to seek out an innovation partner in the online marketing space.
Roman Kilun is a Research Analyst at DMO Global, Inc., a leading affiliate network solely dedicated to serving international and multicultural markets. Roman, a native born of Uzbekistan, is fluent in Russian and Spanish and focuses on emerging markets throughout the world. For business development opportunities abroad, please contact info@dmoglobal.com. DMO Global, Inc. is a wholly owned subsidiary of Dragon Media Online, Inc., an international online media and technology company.
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