Google contextual advertising in Hungary

Hungary is located in the heart of Europe and has a population of about 9.7 million people. Today, it attracts international technology companies due to its skilled workforce, favorable geographical location and competitive costs of doing business. Well-known corporations such as IBM, Microsoft, Nokia, Ericsson and SAP have located their offices and development centers here, which contributes to the development of innovation and the digital economy.

Despite the relatively small market size compared to the largest European countries, this is an EU country and locals are actively shopping online, which makes the prospect of starting a business here and running contextual advertising in Hungary a very lucrative decision. This country has a developed digital infrastructure and a dynamic IT industry.

According to InternetWorldStats, it has an Internet penetration rate of 92.3% (one of the highest in Central and Eastern Europe). This means that the vast majority of Hungarians actively use the Internet in their daily lives, for communication, information search and shopping. Moreover, according to Eurostat statistics, 80% of the population between the ages of 16 and 74 regularly go online and 62% make purchases online.

Features of setting up contextual advertising in Hungary

In order to set up contextual advertising in Hungary to show the best results, the process should take into account the cultural peculiarities, mentality and behavior of local residents. This will help to create more relevant and attractive ads that will resonate better with users and bring more orders.

Target Audience

Hungary is a country with a rich history and distinctive culture. Despite the fact that the majority of the population is Christian (predominantly Catholic), religion does not have a significant impact on everyday life and business. Hungarians value their independence, national identity and traditions, which does not hurt to take into account when creating marketing campaigns.

One of the distinctive features of the audience here has become pragmatism and a rational approach to decision-making. Unlike some other European countries, where emotional factors play a major role, Hungarian consumers tend to analyze information carefully and make choices based on specific advantages and benefits.

Therefore, when targeting the local market, clearly and concisely communicate the main advantages of your product or service in your advertisements, emphasizing their practical benefits.

Despite globalization and openness to foreign products, Hungarians still prefer local companies and goods produced in their home country. Therefore, adapt your content to local realities, use Hungarian language in advertisements and landing pages, and emphasize your brand’s connection to Hungary itself (if possible).

Also emphasize that the local audience is very “spoiled” and therefore all services should be provided at the highest level. Thus, Hungarians always expect prompt feedback, the most complete information about the product and perfect work of the support service.

Language targeting

Hungarian is the official and most widely spoken language in the country, spoken by more than 98% of the population. This unique language belongs to the Finno-Ugric family and has no direct analogs among other European languages, which makes it quite difficult for foreigners to learn and understand.

Given its specificity, to effectively customize your advertising campaigns, engage professionals fluent in this language and familiar with the local culture and mentality. Only native speakers or linguists with a deep understanding of Hungarian will be able to choose the right keywords, create relevant ads and customize the content of the site to meet the needs and expectations of the local audience.

Of course, the Hungarian-speaking audience, which makes up the vast majority of the Hungarian population, should be the first to be targeted when setting up advertising. However, other groups should not be completely ignored. For example, German is the second most popular language, it is studied in schools and universities, and is widely used in business and education. English takes the third place in terms of prevalence and is also quite in demand, especially among young people and representatives of international business.

Seasonality in advertising

One of the key periods for advertisers in Hungary is Christmas and New Year. As in many other European countries, these holidays are the most significant sales period, when locals are looking for places to order gifts. Therefore, advertisers should consider increasing their budget in the run-up to the winter holidays – in some subjects, the company’s turnover for this period can be the same as for the previous six months.

In addition to religious holidays, there are a number of national and cultural events that also affect seasonality. For example, St. Istvan’s Day (August 20) is a public holiday in honor of the first king.

Colorful festivals, fairs and fireworks are held on this day, which creates a good opportunity for brands that want to emphasize their connection to the local culture and history. National flavor can be incorporated into ads and creatives to increase the loyalty of the target audience.

Sports events are also worth mentioning. Soccer, water polo and handball are particularly popular among Hungarians. During major international tournaments – European Championships, etc., many brands become sponsors of national teams, place advertisements in stadiums and create fan-oriented thematic campaigns.

The last but not least factor to take into account when planning is the weather conditions. Summer is quite hot here, which contributes to an increased demand for soft drinks, ice cream, swimwear and other seasonal goods. In winter, Hungarians are actively interested in warm clothing, footwear, skiing equipment and household goods.

Geographic targeting

When setting up geo-targeting, it is better to focus on the most promising regions with the largest paying population:

1. Budapest. With a population of about 1.7 million people in an urban agglomeration, the capital is considered the most attractive location for most advertisers. Companies from key industries for the country’s economy – finance, IT, pharmaceuticals, trade and tourism – are concentrated here. Be sure to set up a separate campaign for Budapest, as the cost per click here will be the highest. This way you can save your advertising budget for attracting users from other regions.
2. Debrecen. The second largest city, located in the eastern part of the country, with a population of about 200 thousand people. It is known for its universities, medical and research centers, as well as a developed pharmaceutical and IT industry. It is an important regional center to consider when setting up location targeting, especially for the B2B sector.
3. Szeged. The third largest city, it is located in the south, near the border with Serbia and Romania. The population of Szeged is about 160 thousand people. It is a significant university, scientific and cultural center known for its innovations in biotechnology, medicine and IT. It also attracts many tourists due to its unique architecture and festivals.
4. Miskolc. The fourth largest, it is located in the northeast with a population of about 150 thousand people. Miskolc is an important industrial center, especially in metallurgy, engineering and chemical industry. The city is also known for its tourist attractions, such as thermal baths and cave baths.

In addition to major cities, when setting up geographic targeting, it doesn’t hurt to keep other regions in mind. For example, Lake Balaton and its surroundings are a popular destination for tourism, recreation and gastronomy. Tourists from all over the world often come here, which means it is better to set up a separate campaign in English for this region if your business is targeting this audience.

Advertising tools

For Hungary, the best performance is shown:

1. Search advertising. This classic tool remains one of the most relevant for attracting targeted traffic even today. Setting up Google Ads in Hungary will attract the attention of people who are already looking for where to buy a product like you are selling, which ensures the highest conversion rate.
2. Google Shopping Merchandise Ads. Allows you to show ads with product images, prices and promotions right in the search results, which makes them stand out from the usual text ads, attracting the attention of customers and encouraging them to make a purchase. For online stores, such ads show much better conversion rates than search ads.
3. Performance Max. The newest campaign format, which is designed to replace most of Google’s existing advertising tools. Thus, within one campaign you can show ads in search, contextual media network, on YouTube, in the “Shopping” tab, etc. The system automatically optimizes such ads using artificial intelligence to achieve the highest results.
4. Facebook and Instagram. Social media is extremely popular in Hungary, especially among young people. Facebook remains the leading platform in the country with an audience of over 6 million, while Instagram is quickly gaining popularity among the younger crowd. Be sure to expand your marketing campaign with these social media platforms, especially if you’re into trending merchandise, giveaways, or products with a WOW effect.
5. YouTube. Video advertising is becoming increasingly in demand as consumers in Hungary spend more time watching online videos. This format is ideal for increasing brand awareness, demonstrating products in action and attracting attention. Moreover, YouTube’s targeting capabilities allow you to effectively reach the right audience by various parameters.
6. LinkedIn. Today, it has become a must-have tool for B2B marketing. This professional social network allows you to connect with decision makers in companies, promote your products, and find potential partners and employees.

What cannot be advertised in Hungary?

As in most European countries, there are strict advertising requirements. Here are the main categories subject to restrictions:

1. Tobacco products. There is a complete ban on advertising cigarettes and other tobacco products in all media, including television, radio, print, billboards and the Internet. The only exception is specialized outlets selling tobacco products, but even there advertising must be limited and not visible from the outside. This state follows the European trend of tobacco control and tightening of anti-tobacco legislation.
2. Alcohol. Advertising of alcoholic beverages, although permitted, is subject to a number of significant restrictions. It must not target minors, give the impression that alcohol consumption leads to social or sexual success, or encourage excessive or irresponsible consumption. It is also prohibited in and near children’s, educational, and medical institutions. In addition, there are restrictions on the time of its broadcasting on television and radio.
3. Gambling. Their promotion is strictly regulated by the state. Advertisements must contain a warning about the dangers of gambling addiction and information about age restrictions. It is prohibited to use images of minors or celebrities, as well as to create the impression that gambling becomes a source of stable income or a solution to financial problems. All advertised operators must be licensed by the Hungarian regulator.
4. Medicines and medical services. It is illegal to advertise prescription drugs. Over-the-counter drugs and dietary supplements may be advertised, but with restrictions. Advertising must not mislead, guarantee a cure for serious diseases or give the impression that taking the drug is necessary for health. Promotion of certain medical services (plastic surgery, dentistry, etc.) is allowed, but with an emphasis on objective information rather than on the promise of guaranteed results (no “before and after” creatives may be shown).
5. Political advertising. All parties and candidates should have equal access to airtime on state channels. Political advertising on and immediately before election day (the so-called “day of silence”) is prohibited. Campaign materials must contain information about the customer and cannot be financed from foreign sources.
6. Children’s goods and services. Advertising directed at children is subject to special controls. It must not exploit the gullibility and inexperience of children, mislead them or encourage them to take dangerous actions. It is forbidden to advertise things not intended for children (alcohol, gambling, fast food, etc.) in children’s programs or print media.

Compliance with these rules is monitored by the Hungarian Competition Authority as well as industry organizations, including the Hungarian Association of Advertising Agencies and the Hungarian Advertising Council. Violation of the legislation can lead to serious fines and reputational losses for companies.

Cost of Google Ads contextual advertising in Hungary

The price of contextual advertising in Hungary is somewhat lower than in more affluent EU countries like Germany or Norway. However, the cost per click can vary significantly depending on the industry, competition and target audience.

According to SEMrush, the average cost per click (CPC) in Google Ads in Hungary is around $0.80. However, in some niches with high competition, this figure can be much higher.

Here are examples of the average cost per click for some popular industries in Hungary from the Keyword Planner service:

1. Financial services and insurance – $2.20;
2. Legal Services – $1.80;
3. Marketing and Advertising – $1.50;
4. Travel and Tourism – $1.20;
5. E-commerce (apparel) – $1.00;
6. Real Estate – $0.90;
7. Beauty and health – $0.80.

It is important to note that the figures above are averages. They may vary depending on specific keywords, geographic targeting and other factors. For example, the cost of a click in Budapest, the capital of Hungary, is usually higher than in other regions of the country due to greater competition and the solvency of the audience.

When planning a budget for contextual advertising in Hungary, it is necessary to take into account not only the cost of a click to the site, but also the cost of services of specialists in setting up and managing campaigns in Google Ads. Although the level of salaries in Hungary is lower than in some Western European countries, the help of a qualified PPC-specialist will still cost quite expensive, so you can seek the services of contextologists from Ukraine in order to save money.

Google’s share in total search traffic in Hungary

As in most European countries, Google is the undisputed leader in Hungary’s search engine market. According to StatCounter, Google’s share of total search traffic in the country amounted to 97.51% in September 2024.

This dominance is due to the fact that Google is deeply integrated with other popular services, including YouTube, Gmail and Google Maps, which makes it even more attractive. In addition, the company is investing heavily in developing its search infrastructure and localizing services for the global market.

The closest competitor to Google is Microsoft’s Bing, but its share in total traffic is only 1.81%. Despite Bing’s integration with the Windows operating system and Edge browser, Microsoft has not yet managed to significantly increase its share of this market. This may be partly due to the fact that many people are simply used to Google and see no compelling reason to switch to another search engine.

Other alternative search engines, such as Yahoo!, DuckDuckGo and Ecosia, have an even smaller share, less than 1% each. Although these systems provide users with certain advantages (e.g., increased privacy in the case of DuckDuckGo), they are not yet widespread.