Market Watch: Germany

What opportunities are available to performance marketers across Europe and how  can these be monetised? Here is the second part of our series taking an in-depth look at market trends and predicted growth across some of the major European markets where affilinet is present.

GERMANY
Market lowdown
Germany accounted for 19% of all money spent in online advertising across Europe in 2011, second only to the UK in terms of absolute spend.  eMarketer predicted 2012 growth approaching 12% across all online media and affilinet expect performance marketing to track more or less in line with that.

Affilinet in Germany
Year to date, key drivers of this growth have been voucher and cashback publishers which are nowhere near as entrenched as they are in the UK market.  There are certainly large publishers in this space such as payback.de, but second, third and fourth slots do not appear to be as sewn up as over here.  However, the key volume driving publisher type for our Munich office is pure content. If you want to engage in this market it is suggested that you supply publishers with exclusive content and offers which they can build articles around.

Food for thought
Facebook penetration is nowhere near as high in Germany as it is in other markets.  This is partly due to the existence of other local competitors, which is a factor that does not exist in the UK.  The upshot of this is that the average CPC has grown as fast as in other markets averaging out at $0.54 over the past 6 months.  This presents arbitrage opportunities, but remember not to forget local players like stayfriends.de, which also operates in the other DACH markets.

Stereotypically German people are thought to be quite concise, so one might expect Twitter’s 140 characters limit to be an ideal communication medium however, this is not reflected in the numbers.  Germany’s Twitter population does place it in the top 20 markets by user base but market penetration sits at just 10%.  Clearly efforts to leverage this platform will not achieve the same results as other more engaged markets like Spain.

Look out for Market Watch: Spain coming soon!

Paul Brown

Paul Brown has over 7 years in online, 6 of those in affiliate marketing.At affilinet Paul is a Senior Strategy Manager and also the UK office’s Product Champion. Paul has an extremely high level of technical know-how and was responsible for developing our Pay Per Call technology and retargeting solution. He has spoken at several industry events, including ad:tech, Affiliates4U Expo and the IAB Affiliate Forum. Previously Paul was Affiliate Executive at Carphone Warehouse and Affiliate Manager at Alliance and Leicester.
Out if hours Paul is at his happiest drinking wine, eating cheese, travelling the world, playing sport and discovering new music and film.

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  1. What opportunities are available to performance marketers across Europe and how can these be monetised? Here is the second part of our series taking an in-depth look at market trends and predicted growth across some of the major European markets where affilinet is present.

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