GERMAN ONLINE ADVERTISING ALLIES AGAINST GOOGLE
Posted: Sat Jan 18, 2025 5:44 am
The four largest online advertising space providers in Germany have formed an alliance to pool their audiences and gain greater leverage against online advertising market giants such as Google and the large media agency networks. The strategic alliance of Gruner + Jahr Electronic Media Sales (Bertelsmann), Tomorrow Focus (Hubert Burda Media), SevenOne Media (ProSiebenSat.1) and IP Deutschland (RTL) is subject to approval by the German antitrust authorities.
The alliance will be limited to online amazon data advertising and will focus on targeting the four partners' combined audience, which accounts for 80-85% of internet users in Germany. By combining their strengths, they will be able to compete with Google, which has an audience of 90% of internet users in Germany. The German online advertising market could reach a gross volume of 4 billion euros this year, according to estimates by the online industry association BVDW.
The alliance also attacks the dominant position of media agencies, against which online advertising providers can do little due to the high fragmentation of the market. The aim of the alliance is to stop the fall in prices for graphic advertising and reach the critical mass of Internet users.
The German online market is divided into two camps: on the one hand, Google, which accounts for almost half of the German online advertising market. On the other hand, the providers of display advertising , which include mainly the online divisions of television and publishing houses, are heavily affected by the falling prices for online advertising. This situation is exploited by media agencies, which put pressure on the providers to lower their prices.
The alliance will be limited to online amazon data advertising and will focus on targeting the four partners' combined audience, which accounts for 80-85% of internet users in Germany. By combining their strengths, they will be able to compete with Google, which has an audience of 90% of internet users in Germany. The German online advertising market could reach a gross volume of 4 billion euros this year, according to estimates by the online industry association BVDW.
The alliance also attacks the dominant position of media agencies, against which online advertising providers can do little due to the high fragmentation of the market. The aim of the alliance is to stop the fall in prices for graphic advertising and reach the critical mass of Internet users.
The German online market is divided into two camps: on the one hand, Google, which accounts for almost half of the German online advertising market. On the other hand, the providers of display advertising , which include mainly the online divisions of television and publishing houses, are heavily affected by the falling prices for online advertising. This situation is exploited by media agencies, which put pressure on the providers to lower their prices.