The Structure of the Digital Advertising Industry in Germany. Factors that Influence Decision Making and their Implications for Value Creation

Focusing on decision-making in digital advertising within the German market, this essay examines the industry's structure, emphasizing the interplay between companies, agencies, and third-party providers. It identifies inefficiencies stemming from information asymmetry and discrepancies between mission statements and actual practices. The author evaluates best practices for enhancing digital media decisions and offers empirical examples to illustrate their impact on client investment returns. Normative recommendations are also provided for companies involved in digital marketing to optimize their investment outcomes.