Online penetration in Germany is over 50% for every age group 50 and younger, with users comfort with the internet making Germany the largest e-commerce market in Western Europe.
According to eMarketer’s new
Germany Online report German shoppers are expected to spend over $108 billion in 2008, signalling the country’s importance in the growth of the internet’s infrastructure and economy.
James Belcher, eMarketer senior analyst and author of the report, explained: “In assessing the growth of the internet, and e-commerce in particular, many marketers, as well as many analysts, tend to overlook Germany, often merely lumping it together with the rest of the E-5 countries or Western Europe as a whole.”
Belcher continued: “That’s a mistake. Germany is the third-largest economy in the world, right behind the US and Japan, and what happens there is vitally important to the internet’s growth.”
The rise of VoIP and IPTV is also fuelling the internet’s penetration in Germany, resulting in VoD adoption in particular demanding innovative marketing, as IPTV provides a free alternative to subscription based television.
Recent research published by Screen Digest reveals that IPTV is increasing its presence in Europe, with the total number of subscribers in Europe predicted to rise from 658,000 to 8.7 million, accounting for 0.9% of the European Pay TV market. This growth is expected to have a significant impact on most European Pay TV markets (see Popularity Of E-Shopping Continues To Grow)3353.
Turning back to Germany, one of the main reasons eMarketer projects the good performance of the internet to continue is demographics. According to the analyst, over 83% of 14-29 year old Germans use the internet. More than half of those 59 and younger are online, while just 20% of those 60 and older are offline.
Explaining the strong penetration, Belcher said: “Part of the reason for such high usage by young people is the ‘Schools on the internet’ initiative, with 84% of all German pupils online, with a further 9% lined up to begin to use the internet within the next twelve months.”
Similarly eMarketer asserts that more than two thirds of working people are online, with internet usage now a requirement for many jobs.
Belcher added: “The internet has a huge presence in German life, both public and professional, and Germany is a huge presence in the world economy. Marketers who ignore these facts are missing a huge opportunity.”
According to research from Datamonitor, consumer broadband adoption is increasing at its fastest rate across most of Europe, with penetration expected to settle at around 60% in terms of household penetration in advanced markets (see Europe Sees Surge In Broadband Adoption).
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