Online advertising market growing more slowly than forecast
A look across the border shows that the German online advertising market continues to grow at a double-digit rate. However, the growth is not as strong as had been forecast at the beginning of the year. In Germany, 12 percent of advertising spending already goes to the online sector. In Switzerland, the figure is only two percent.
A look across the border shows: The German online advertising market continues to show double-digit growth. However, not as strongly as predicted at the beginning of the year. According to the German online platform Kress.de, the Online-Vermarkterkreis (OVK) in the Bundesverband Digitale Wirtschaft (BVDW) expects advertising expenditure to amount to EUR 3.6 billion, an increase of 25% compared to the previous year.
In 2007, the growth rate was still at 40 percent, in 2006 at 80 percent. The market share of online in the overall media mix is expected to reach 13.5 percent this year (2005: 4.4 percent). At EUR 1.8 billion, the largest slice of the online advertising pie in Germany is accounted for by classic banners, with the remainder split between search term marketing (EUR 1.5 billion) and affiliate networks (EUR 268 million). According to Kress.de, OVK Chairman Paul Mudter sees the figures as a "definitive establishment of the online segment".
Swiss advertising agencies are also slowly recognizing the opportunities of online marketing, said Andreas Schönenberger, Country Manager Switzerland at Google, at a specialist conference this week according to the Handelszeitung. Currently, only two percent of Swiss advertising budgets flow into the online sector. However, increased growth is foreseeable. In Germany, the proportion is already at 12 percent, in the UK at over 20 percent. It is crucial that offline campaigns are supported by online offerings, as consumers expect further information in addition to print or television advertising, Schönenberger continued.
In 2007, the growth rate was still at 40 percent, in 2006 at 80 percent. The market share of online in the overall media mix is expected to reach 13.5 percent this year (2005: 4.4 percent). At EUR 1.8 billion, the largest slice of the online advertising pie in Germany is accounted for by classic banners, with the remainder split between search term marketing (EUR 1.5 billion) and affiliate networks (EUR 268 million). According to Kress.de, OVK Chairman Paul Mudter sees the figures as a "definitive establishment of the online segment".
Swiss advertising agencies are also slowly recognizing the opportunities of online marketing, said Andreas Schönenberger, Country Manager Switzerland at Google, at a specialist conference this week according to the Handelszeitung. Currently, only two percent of Swiss advertising budgets flow into the online sector. However, increased growth is foreseeable. In Germany, the proportion is already at 12 percent, in the UK at over 20 percent. It is crucial that offline campaigns are supported by online offerings, as consumers expect further information in addition to print or television advertising, Schönenberger continued.
