Online advertising in Germany

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The market for online advertising has grown rapidly in recent years.
By the year 2008 classic display advertising
captured a share of close to 5% of
total advertising expenditure in Germany. Together with expenditure on keyword
advertising, a total of EUR 2.25 bn was spent on online advertising in 2008.

Growth in online advertising in 2009 despite the crisis (7% yoy) –
thus bucking the trend of declining budgets in
the advertising industry. This is also
because in the crisis marketers are turning to low-cost advertising channels such
as online advertising. Although advertising on
the internet can no longer post the growth rates seen in the past boom year
s, it can still expand its share of total advertising spend, especially at the expense of print media. From 2010 onwards  the online advertising segment should return to double-digit growth rates.

Keyword advertising on the ascendancy.
This is due among other things to
high acceptance among users who feel that keyword advertising supports them in
their information and purchasing process. However, the success of keyword
advertising is often assessed one-dimensionally, ignoring the interaction between
different advertising formats and especially the role of branding formats.

Many experiments with video ads and Web 2.0.
Surfers’ quest for entertainment on the web and the spread of moving-picture formats present an
attractive market in future for the advertising industry. Tight advertising budgets
and inadequate performance measurement metrics are dampening factors at
present. However, with the cyclical upswing these advertising formats should
receive a renewed boost.

Targeting aims to direct the advertising more effectively at the target
group.

The logic behind targeting is to use information about consumers and/or
their behaviour on the web to place the advertising. Behavioural targeting
especially, which builds on behavioural research, will gain strongly in importance
and further increase the effectiveness of advertising on the internet

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