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[BRANDWEEK REPORT] #ADBUDGET: AD SPEND GROUNDS TO A HALT IN GERMANY.

According to brand analysts, ad spending across all media in Germany is experiencing a progressive nose dive.

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          Photo credit: emarketer

More optimistic sources peg growth around 1% annually. Some channels, though—including online—are outperforming the average.

According to the Zentralverbsnd der deutschen Werbewirtschaft (ZAW), total media ad spending in Germany declined by almost €1 billion ($1.11 billion) from 2011 to 2015, losses each year during that period. The biggest drop, by 3.2%, came between 2011 and 2012, when spending dipped from €16.03 billion ($17.78 billion) to €15.52 billion ($17.22 billion).

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             Photo credit: emarketer

But that doesn’t mean all media in Germany are in trouble. In fact, a handful are seeing positive growth. Outdoor ad spending, for example, grew 8.5% in 2015 after 3.9% increases in 2014; online and mobile advertising grew 6.0% last year after 6.0% growth a year earlier. Though more modest, TV ad spending grew 3.0% in 2015.

The larger problems—and this is far from unusual—come in print media; consumer magazine ad spending declined nearly 10% between 2014 and 2015. Daily newspaper ad spending shrank over 6.5%. And directory ad spending, though smaller than consumer magazine ad spending or newspaper ad spending, suffered large spending losses as well, at about 8%.

eMarketer’s own outlook for ad spending in Germany is more positive—analysts project growth in total media ad spending in Germany each year from 2014 through 2020, though rates of increase are expected to be tiny.

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            Photo credit: emarketer

Analysts similarly project declines in print ad spending, slow growth for TV and somewhat faster growth for digital.

The biggest growth area will be in mobile, where ad investments are expected to rise by 44.4% this year. Double-digit growth will continue on the mobile channel through 2019, when mobile is expected to account for nearly a quarter (24.0%) of all ad spending in the country.

Despite the projected losses in print ad spending, it will continue to hold the largest share of the pie through 2019. In 2020, just under a third of all ad spending in Germany will still go to print (32.3%)—almost even with the share that will go to digital that year (32.5%).

Source: emarketer

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