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More fallout from the Google ad controversy and boycott: When asked whether German brands would react to the situation by cutting their Google ad spending budgets, 64% of digital marketing decision-makers polled in the country said yes—at least until the current problems are solved.
The survey, conducted in April 2017 by Agentur Frau Wenk+++, was spurred by growing concern about the possibility of ads appearing alongside extremist or other objectionable content, in particular on YouTube.
Just 20% of survey respondents said they expected that companies would keep the same budget allocation for Google that they had before the scandal erupted.
And make no mistake—this decline in spending is specifically directed at Google and YouTube. Just 18% of survey respondents said they expect brands in Germany to reduce their total digital ad spending budgets.
A March 2017 estimate from eMarketer pegs total digital ad spending in Germany in 2017 at $6.12 billion, second only to the UK in Western Europe.
But digital continues to make up a relatively small piece of Germany’s total media ad outlays. eMarketer estimates digital ad spending will account for just 30.0% of total media spend in the country in 2017. The proportion is above 50% in a handful of European markets, and the global average is 38.3%.
Shifts in how retailers and consumer packaged goods (CPG) brands think about ecommerce, combined with an accelerating acceptance among consumers for buying food digitally, have boosted online sales of groceries. Retailers and brands are taking note of these changing consumer behaviors and offering more digital options for grocery shopping and delivery, which will continue to drive the trend upward in 2017 and beyond.
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