Search Advertising - Germany

Germany

Highlights

In Germany, the ad spending in the Search Advertising market is forecasted to reach US$7.09bn by 2024.
The expected annual growth rate (CAGR 2024-2030) is 5.85%, leading to a projected market volume of US$9.97bn by 2030.
When compared globally, the United States is anticipated to have the highest ad spending (US$137.00bn in 2024).
Within the Search Advertising market, 41% of total ad spending is estimated to come from mobile devices in 2030.
The average ad spending per internet user in the Search Advertising market is projected to be US$99.59 in 2024.
Germany's Search Advertising market is seeing a shift towards more personalized and localized ad campaigns to target specific regional audiences effectively.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in Germany is experiencing significant growth and development.

Customer preferences: Customers in Germany are increasingly relying on search engines to find information, products, and services. They appreciate the convenience and speed of search advertising, which allows them to quickly find relevant results. Furthermore, customers are becoming more discerning and demanding in their search queries, expecting accurate and personalized search results. As a result, advertisers are investing more in search advertising to meet these customer expectations.

Trends in the market: One of the key trends in the Search Advertising market in Germany is the increasing adoption of mobile advertising. With the proliferation of smartphones and the growing popularity of mobile internet usage, advertisers are recognizing the importance of targeting mobile users. Mobile search advertising allows advertisers to reach customers on-the-go, providing them with relevant ads based on their location and preferences. This trend is driven by the changing consumer behavior, as more people are using their mobile devices to search for information and make purchasing decisions. Another trend in the market is the rise of programmatic advertising. Programmatic advertising automates the buying and selling of ad inventory through real-time bidding. This technology allows advertisers to efficiently target their ads to specific audiences, based on factors such as demographics, interests, and browsing behavior. Programmatic advertising in the Search Advertising market in Germany is gaining traction due to its ability to deliver highly relevant and personalized ads to customers, resulting in better engagement and conversion rates.

Local special circumstances: Germany has a highly competitive market for search advertising, with both local and international players vying for market share. Local search engines, such as Google. de and Bing. de, dominate the market, but international players like Google and Facebook also have a significant presence. Advertisers in Germany need to carefully consider their target audience and tailor their search advertising strategies to effectively compete in this competitive landscape.

Underlying macroeconomic factors: The strong economy in Germany is driving the growth of the Search Advertising market. As the largest economy in Europe, Germany has a robust consumer market with high purchasing power. This provides advertisers with a large customer base and ample opportunities to promote their products and services through search advertising. Additionally, the increasing digitization of businesses and the rise of e-commerce are further fueling the demand for search advertising in Germany. In conclusion, the Search Advertising market in Germany is experiencing growth and development driven by customer preferences for convenience and personalized search results. The increasing adoption of mobile advertising and programmatic advertising are key trends in the market. Germany's competitive market landscape and strong economy are also contributing to the growth of the Search Advertising market.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.