Retail to Drive Digital Ad Spend in Germany

Investment to surpass nearest competitor by $50 million

October 4, 2017

The retail sector will be responsible for more than a fifth of all digital ad spending in Germany this year, according to eMarketer’s first-ever cross-industry ad spending forecast for that country. 

Driven by ecommerce-related advertising, the country's retail sector is expected to spend $1.38 billion on digital ads in 2017, up 7.4% over 2016, eMarketer predicts. With that level of investment, retail will be Germany's largest industry sector for digital ad expenditures—responsible for 22.5% of total outlays, and outpacing the next nearest industry, automotive, by $50 million.

The data is drawn from eMarketer's new report on industry-by-industry ad spending in Germany. Subscribers to eMarketer's PRO subscription service can read the full report here. Nonsubscribers can purchase the report here. 

Retail will play an outsized role in Germany's mobile advertising ecosystem, accounting for nearly 29% of overall mobile ad outlays this year. Just over 60% of the sector's digital ad dollars, or approximately $840 million, will be devoted to mobile efforts in 2017.

"The German retail industry’s investment in mobile advertising has seen rapid growth more recently as the luxury goods market, especially fashion players, begin to make use of the medium," said Monica Peart, eMarketer's senior forecasting director. "This increased spend on mobile advertising is in tandem with Germany’s consumers upping their engagement with mobile devices."

Retail isn't alone in taking a more mobile-focused approach. Across all the industries eMarketer tracks—automotive, consumer packaged goods (CPG) and consumer products, financial services and travel—spend on desktop/laptop advertising will show negative growth in 2017 as consumers, and subsequently advertisers, shift their digital activities toward mobile devices.

Photo by Mike Wilson on Unsplash