Social Media Advertising - D-A-CH

  • D-A-CH
  • Ad spending in the Social Media Advertising market within the D-A-CH region is projected to reach US$6.29bn in 2025.
  • The ad spending in this region is expected to exhibit an annual growth rate (CAGR 2025-2029) of 10.06%, leading to a projected market volume of US$9.23bn by 2029.
  • In a global context, the majority of ad spending will be generated China, with a projected total of US$96,820.00m in 2025.
  • Within the D-A-CH region's Social Media Advertising market, it is anticipated that 79% of total ad spending will be generated through mobile by 2029.
  • Additionally, the number of users in the Social Media Advertising market in the D-A-CH region is expected to reach 75.8m users by 2029.
  • In Germany, social media advertising is increasingly focusing on authentic brand engagement, reflecting a consumer shift towards transparency and meaningful interactions.

Key regions: United States, France, Japan, Europe, Germany

 
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Analyst Opinion

The Social Media Advertising market in D-A-CH, which includes Germany, Austria, and Switzerland, is experiencing significant growth and development.

Customer preferences:
Customers in the D-A-CH region have shown a strong preference for social media advertising due to its wide reach and ability to target specific audiences. Social media platforms such as Facebook, Instagram, and YouTube are highly popular among the population, making them ideal channels for advertising. Additionally, customers in this region appreciate the interactive nature of social media advertising, allowing them to engage with brands and provide feedback in real-time.

Trends in the market:
One of the key trends in the Social Media Advertising market in D-A-CH is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are being utilized by brands to promote their products or services. This strategy has proven to be effective in reaching the target audience and generating brand awareness. As a result, more companies are investing in influencer collaborations to enhance their social media advertising efforts. Another trend in the market is the growing importance of video content. Videos have become a popular format for social media advertising as they capture the attention of users and convey messages effectively. Brands are creating engaging video content to promote their products or services, and social media platforms are providing more features and tools to facilitate video advertising. This trend is expected to continue as the demand for video content remains high.

Local special circumstances:
In the D-A-CH region, there are specific cultural and linguistic factors that influence social media advertising. Each country within the region has its own unique language and cultural nuances, which require tailored advertising strategies. Brands need to consider these factors when creating social media campaigns to ensure they resonate with the local audience. Additionally, privacy concerns are particularly important in Germany, where data protection regulations are stringent. Advertisers must adhere to strict guidelines to protect user privacy and gain trust from consumers.

Underlying macroeconomic factors:
The strong economy in the D-A-CH region contributes to the growth of the Social Media Advertising market. Germany, Austria, and Switzerland have stable economies with high purchasing power, allowing companies to allocate significant budgets for advertising. The region also has a high internet penetration rate, providing a large online audience for social media advertising. Furthermore, the increasing use of smartphones and access to high-speed internet has further boosted the popularity of social media platforms, creating more opportunities for advertisers. In conclusion, the Social Media Advertising market in D-A-CH is experiencing growth and development driven by customer preferences for interactive and targeted advertising. Influencer marketing and video content are key trends in the market, while local special circumstances such as cultural and linguistic factors play a role in shaping advertising strategies. The strong economy and high internet penetration rate in the region contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). 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, social media 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.

Overview

  • Ad Spending
  • Key Players
  • Analyst Opinion
  • Reach
  • Global Comparison
  • Methodology
  • Key Market Indicators
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