Review Digital Advertising Overview: Germany, Austria and Switzerland (by MGID)

[Daniella MGID]

GERMANY ​

GENERAL INFORMATION

• The country remains the largest economy in Europe with 21% of contribution to the European GDP. In 2018, GDP per capita reached 48,195$. Average salary is about 4,651 euros;
• After several years of real GDP growth averaging over 2 percent annually, Germany’s economy has seen a steady GDP growth over 2% during the past several years. However, today we observe a slowdown in GDP growth of 0.7% in the first quarter of 2019;
• Germany is divided into 16 states. The largest cities are Berlin, Hamburg, Munich, Cologne, and Frankfurt am Main;
• The official language is German.

CONSUMER BEHAVIOR

Gen Z makes up 3.2% of the workforce in Germany, followed by Baby Boomers (17,7%), Millennials (39%) and Gen X (40,1%).

Let’s start with Millenials. 70% of them are highly concerned with security and stability. Thus, it would be illogical to promote risky BSFI products or make them fill out the credit card details on the landing page. However, they tend to be riskier compared to previous generations. Statistics also prove that the interest in Shopping and Lifestyle decreases over the years. Finally, German Millenials tend to buy clothes and electronics.

On the whole, German consumers tend to compare prices and are looking for good deals. They enjoy finding special deals and promotions. However, their behavior patterns depend on the product categories. Germans value quality, security, comfort, and convenience the most when considering buying long-term consumer goods. For everyday purchases as well as small equipment or industrial consumables, price is the main important factor to consider. While making a purchase, they also value the flexibility of the delivery. Home, workplace, and locker delivery (click and collect) are the most preferred options. Keep in mind while mastering your campaign, by providing a range of delivery options you may increase the intent of purchase.

DEVICE USAGE (Percentage of the adult population)

75% of German people use smartphones and the distribution of laptop and tablet usage is 76% and 38% respectively.

E-COMMERCE VALUE (Statista)

• Revenue in the eCommerce market amounts to US$75,445m in 2019;
• Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 6.3%, resulting in a market volume of US$96,280m by 2023;
• User penetration is 90.2% in 2019 and is expected to hit 94.8% by 2023;
• The average revenue per user (ARPU) currently amounts to US$1,014.98;
• 35% of e-commerce time now takes place on mobile;

PAYMENT METHOD

According to Statista, 30% of total eCommerce purchases will be paid by Bank transfer in 2019. Generally, German people prefer to pay via Paypal (54%) and bank transfer (52%).

BEST-PERFORMING VERTICALS

For example, Germany is the leader in the number of obese people - 25.1%. This is followed by Austria (21%) and Switzerland (15%). So weight-loss products will definitely have to convert well. Then, dating, games, moneymaking, casinos, products against erectile dysfunction also work for german-speaking countries.

CREATIVE’S TIP

• Statistics prove that 80% of purchases are motivated by content marketing efforts;
• Germans think less is more, so do not overwhelm them with long product descriptions. Be brief, concise and focus on the really important product’s benefits;
• World-of-mouth is a significant marketing instrument. Thus reviews of other people will allow you to increase purchase motivation;
• Real estate prices are creeping up. You can confidently put pressure on this weak point, offering to earn money for your “nest”, escape the lawlessness of the arrogant landlord, and so on;
• In Germany, a healthy lifestyle flourishes as well as veganism among the younger generation. Avocados, chia seeds, and granola are the holy trinity for almost every German. At the same time, the older generation still adheres to the old-school diet - beer, fried sausages (bratwurst) and sauerkraut.
• German culture is too paradoxical: there are punks, bank clerks, strict hunks, and unfaltering rebels. A neighbor of a native German can be a person of almost any nationality. So, do not put exclusively blond girls in dating would be not only illogical but also implausible;
• Not a single sane German will buy a product without making sure that it is impossible to purchase it cheaper. So be sure to lure them with sales and price drops;
• The Germans are pedantic and follow the laws if only because for the slightest non-compliance you can get a huge fine. So for the improper sorting of garbage, you can pay up to 5 thousand euros, which your neighbor will inform you about with pleasure. That is why in advertising texts, you should not provoke the German to break the rules, go beyond the boundaries or do something “almost legal”;
• The trend for beautiful foreigners is still booming. Recall that the locals are hunks, so it is important to emphasize that girls are looking for pure and true love.

MGID traffic distribution is the following: desktop (25%), mobile (67%) and tablets (7%). Overall, MGID processes around 1,2 million clicks per week in Germany.

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MGID team​

 

[Daniella MGID]

AUSTRIA
GENERAL INFORMATION​

• Generally, Austria remains one of the most stable European countries. The country experienced slow economic growth after the economic crisis. However, the economy has seen a progression since 2017. In 2018, economic growth reached 2,8% and is expected to slightly fall to 2,2% in 2019.
• GDP per capita was around 51,708 in 2018 and is forecasted to reach 52,474 in 2019;
• 8.8 million population with 4.4 million of the skilled labor force, mainly well-educated;
• The most major ethnic group are Austrians (81%);
• The official language is German.

CONSUMER BEHAVIOR

Generally, Austrians are well-educated high-income workers that is why they tend to be very demanding and diversified in tastes. People value quality and are ready to pay more for valuable products. However, the price is also an important factor to consider during the purchase. We suggest you putting emphasis on the quality product attributes and benefits which underline its value.

DEVICE USAGE (Percentage of the adult population)

75% of Austrian people use smartphones and the distribution of laptop and tablet usage is 78% and 35% respectively.

E-COMMERCE VALUE. According to Statista:

• Revenue in the eCommerce market amounts to US$8,783m in 2019;
• Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 7.0%, resulting in a market volume of US$11,526m by 2023;
• User penetration is 81.5% in 2019 and is expected to hit 87.8% by 2023;
• The average revenue per user (ARPU) currently amounts to US$1,229.35;
• More than 60 percent of Austrians make purchases online. When buying a product online, they are looking for the convenience of online ordering in term of delivery and time;
• Today, about 10 percent of online commands are made via smartphones.

PAYMENT METHOD

On the whole, Austrians online shoppers prefer to pay cash on delivery, then goes the bank transfers (31%) and credit cards (30%).

BEST-PERFORMING VERTICALS

For example, Germany is the leader in the number of obese people - 25.1%. This is followed by Austria (21%) and Switzerland (15%). So weight-loss products will definitely have to convert well. Then, dating, games, moneymaking, casinos, products against erectile dysfunction also work for german-speaking countries.

CREATIVE’S TIP

• Austria is one of the most comfortable but at the same time expensive European countries. Therefore, an offer to save money or get a discount for a frugal Austrian will always be welcome. Then, its residents are chronic workaholics unlike citizens of neighboring countries. Austrians strive for luxury but understand that without hard work this cannot be achieved, so you should not promise to become a millionaire tomorrow.
• Half of the Austrian men and 30% of women are overweight. There is no cult of a healthy lifestyle. Therefore, it will be quite appropriate to offer the Austrian to lose weight without much effort and extra body movements.
• One of the most famous “know-how in Austrian”, the world considers Vienna coffee. Its creamy taste and rich aroma in combination with the Sacher branded cake are part of the Austrian culture, into which guests of the country are happy to immerse themselves.
• It is not customary to give expensive gifts. Even at the wedding, you can safely present a jar of olives and no one will expect more. You should not offer an Austrian “a gift that you have been looking for for your girlfriend for so long”, as in his understanding it can be a keychain with a squirrel for 2 euros.

MGID traffic distribution is the following: desktop (27%), mobile (66%) and tablets (7%). Overall, MGID processes around 200 000 clicks per week in Austria.

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​

MGID team​

 

[Daniella MGID]

SWITZERLAND​

GENERAL INFORMATION

• Switzerland is one of the wealthiest countries in the world with a stable growing economy. In 2019, economic growth is expected to reach 1,8%;
• Its GDP per capita was over US$70,000 and remains one of the highest in Europe;
• The Swiss franc is the national currency. So we suggest putting prices in francs and providing consumers with local payment options we will discuss further;
• There are four official languages: German, French, Italian, and Romansh. Two-thirds of the population speak German, followed by French. Minority speaks Italian and Romansh.

CONSUMER BEHAVIOR

In general, Swiss consumers tend to value the origin of the products and price-to-quality ratio rather than design, sustainability or after-sales consumer service. They are also looking for lower prices and foreign products not available on their home market. Keep this in mind when choosing which offers to promote. Swiss are interested in niche/specialized products and varied delivery options.

Key drivers for shopping online are saving time, convenience, and being able to compare prices. Little trust in online payment methods, shipping costs, and inability to check the product’s quality in person are the main barriers discouraging them to shop online.

DEVICE USAGE (Percentage of the adult population)

79% of people use smartphones and the distribution of laptop to tablet usage is 86% and 45% respectively in Switzerland.

E-COMMERCE VALUE. According to Statista:

• Revenue in the eCommerce market amounts to US$8,563m in 2019.
• Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 6.6%, resulting in a market volume of US$11,060m by 2023.
• The market's largest segment is Electronics & Media with a market volume of US$2,476m in 2019.
• User penetration is 86.6% in 2019 and is expected to hit 92.7% by 2023.
• The average revenue per user (ARPU) currently amounts to US$1,149.18.

PAYMENT METHOD

One study proved that Swiss are highly concerned with the security of online payments. That is why they prefer to pay online by invoice rather than using credit or debit cards. However, according to the data from Netcomm Suisse, Swiss consumers tend to pay via PayPal (43%), credit card (40%) and cash on delivery (39%).

CREATIVE’S TIP

• Switzerland has more mountain peaks than any other European country. For this reason, photos of mountains are a great solution for any offer. They will look native to the Swiss;
• Real estate is very expensive. A tiny house can be sold for a 7-digit price. You can sublimate this problem into texts that call to earn online. So, try to write about a sudden chance to get your own house;
• The rights of animals are equated to human rights. There’s a well-known lawyer Adrian Getchel from Zurich, whose clients included more than two hundred dogs, cats, farm animals, and birds. As a result, you need to be careful about texts and pictures depicting animals. Photos of cats/dogs at work or lying in a heap of money can be negatively perceived;
• Chocolate is considered a symbol of Switzerland. You can use it for many verticals. For example, promise life as sweet as chocolate for job search or dating offers;
• As for food, European (Italian or French) cuisine will not surprise anyone. Such food is considered mundane and cheap. But Asian dishes are real delicacies. The Swiss have to fork out a tidy sum for the usual sushi rolls and other dishes. A great illustration for a prosperous lifestyle or a good date;
• The Swiss value their time very much and never waste it. They know exactly how long they will take this or that action. They are annoyed by any inaccuracies in this matter. Therefore, phrases like “3-5 days”, “about a minute” should be avoided.

BEST-PERFORMING VERTICALS

For example, Germany is the leader in the number of obese people - 25.1%. This is followed by Austria (21%) and Switzerland (15%). So weight-loss products will definitely have to convert well. Then, dating, games, moneymaking, casinos, products against erectile dysfunction also work for german-speaking countries.

MGID traffic distribution is the following: desktop (29%), mobile (60%) and tablets (11%). Overall, MGID processes around 150 000 clicks per week in Switzerland.

Sign up at MGID and get a 25% bonus on top of your first deposit from $ 500 to $ 5000. Let’s start making money!​

MGID team​