2016.11.28 – Mercury Publicity: German Advertising market performs well

From January – October 2016, spendings in the above the line media grew by 4.7% to a total of 24.25 billion Euros compared to the same period last year.

All media are in the plus, except for consumer magazines (-0.5%) and internet (-5.5%). Mobile continued its strong growth – although still on a low level – and increased its investments by 76.2% to 401,527 million Euros. Cinema and radio follow with +9.8% resp. +8.3%.

Automobile, E-Commerce and online-service-providers continue to be the branches of industry with the highest investments for above the line media (1.46, 1.41 resp. 1.24 billion Euros). (Nielsen Media Research).

 

Forecast 2016 / 2017

​In September, Zenith Optimedia and Carat adjusted their media spend projections from March for the German advertising market in 2016 upwards: Zenith Optimedia now prospect a growth of 2.8% (formerly +2.6%). Carat now estimate +2.3% (formerly +1.8%) – neither the refugee crisis nor the EU referendum seem to have shaken consumer confidence in the German economy which is expected to gain more momentum in the second half of the year.

In 2017, Carat forecast growth to continue in Germany at a moderate +2.1% pace. Mobile ad spending would increase at high rates of +50.5% in 2016, and +45.6% in 2017. Programmatic advertising (display and video) is predicted to grow by 45.4% in 2016, and by 42.4% in 2017.

Magna Global project advertising revenues to grow by 2.3% in 2016. For the next year they estimate an increase of 2.1%.