For instance, the rapid growth of the digital advertising market in Germany indicates not only a strong economic potential but also its capacity. According to Statista, the current market volume is $8,706 million and growing. Therefore, the ad spending in German digital channels will only increase annually. In 2018, eMarketer stated that the overall digital ad spending share in Germany reached 31.9% which marked the real turning point for the digital. By all means, TV is still one of the most preferred ad channels to invest in. However, traditional TV is definitely doomed while digitalization is in full swing influencing digital television, e-commerce, and retail. Obviously, it has a lot to do with the affiliate industry.
The Role of Affiliate Marketing in German E-commerce
Your affiliate marketing journey might have started recently or it might even have been your passion for a considerable amount of time. No matter the duration of your commitment to the industry, it is a well-known fact that a huge variety of European offers differ in terms of payouts and performance. The general interest in German geo and lucrative DEU offers prove that German traffic generates the most conversion value.
Affiliate marketing is believed to be the most cost-effective strategy for the e-commerce industry in any country. In a nutshell, the affiliate industry provides the widest choice of promotion methods and, therefore, increases the possibility of customers connecting with your brand. Simply put, it is the best add-on to your customer acquisition strategy.
According to the preliminary estimates by Ecommerce News, German e-commerce industry is likely to expand by around 9% in 2019. Moreover, online retail is expected to be worth close to 57.8 billion euros by the end of 2019. Therefore, one of the main tips is to pay attention to German multichannel retail. The sales are drastically increasing and, therefore, providing a unique opportunity for brands to acquire more loyal customers and for affiliates to earn big with DEU offers.
Along with the growth of the ad tech market in Germany, affiliate marketing will also advance which, in turn, means that brands will be interested in high-quality traffic sources, cost-efficient advertising campaigns, and increasing the lifetime value of their customers. Naturally, high payouts are not going to be exclusively linked to e-commerce or retail verticals. Therefore, the opportunity to gain profit will be presented in a variety of niches, including the dating vertical.
Internet Regulations in Germany
When it comes to internet regulations, Germany is amazingly strict. The most discussed and sensitive issues are ad fraud, transparency, and brand safety. Clearly, these issues are not only critical for the German digital ad ecosystem. However, German brands start to suffer significantly more from fraudulent activities which result in massive losses.
As for the non-safe brand environment, it is important to mention that the rise of programmatic makes all the parties responsible and obliged to ensure the safety of ad space, content, etc. However, there is still a chance that programmatic buying might corrupt the transparency which makes it clear that there is yet another issue for the advertisers to take care of.
When it comes to the importance of the German market for the affiliates, it is safe to say that the green light is on and all the market possibilities have not been exploited yet. Unquestionably, privacy violations are one of the main concerns for the Germans. Therefore, the only so-called obstacle for the affiliate industry is GDPR and possible technical limitations. Other than that, if your business is transparent you are doomed to succeed.