Although Britain leads Europe in Internet penetration, e-commerce revenues and online advertising, Germany has the largest online population, a role that is setting the country up to shape Europe's online future, according to an eMarketer report released Friday.

“While consumers and advertisers in Britain were generally quick to explore the benefits and potential of the online channel, many Germans – and German businesses – took time to warm to the Web,” eMarketer stated.

By the end of the year, eMarketer stated in its report that online ad spending in Germany will reach €2.4 billion. The report also projects online spending will continue at double-digit rates, reaching €3.5 billion in 2010.

Socially and commercially, Germany is more conservative than many of its European counterparts, according to eMarketer.

“Practicality is a virtue, and established leaders in many industrial sectors are not inclined to pursue innovations in advertising and marketing until they are proven to bring results,” eMarketer stated in a release about the report.