The German online advertising market is forecast to reach a value of $1.9 billion by 2005 – representing an increase of 343.8% over 2001, according to the latest analysis by Datamonitor.
Germany lead Europe The compound annual growth rate (CAGR) of the German online ad market is predicted to be 45.1% during the 2001-2005 period. Germany leads the European online advertising market and reached a value of $341 million in 2000.
Strong growth in the German market is predicted for the foreseeable future. “However, as the market is still very much evolving, growth somewhat fluctuates and lacks stability. Nevertheless, growth will peak in 2003 and will then begin to decline as the market begins to develop and become more mature,” says the report.
Banner advertising dominates As in other Western countries, banner advertising is the dominant revenue source in the German market, with sponsorship retaining a significant market size. Growth has been strong in recent years but is now beginning to slow, according to Datamonitor.
