Hamburg, 13 January 2017. The German advertising market will continue to grow in 2017, according to projections by the agency group JOM. Net advertising expenditure by German companies will experience an increase of around 2%, a growth rate comparable to last year’s. While overall economic development is showing a slight decline, the advertising market remains stable. Experts at JOM estimate that the market volume will easily exceed €23.5bn in 2017.
The proportion of digital media will also continue to increase, with non-linear moving images in particular gaining considerable significance. This growth is being propelled by social videos on Facebook and advertisements on YouTube along with the increased distribution of advertisements on mobile devices. JOM expects mobile advertising to increase by over 70% in 2017. Non-linear moving images will experience an increase of around 50% in relation to last year.
“What we are experiencing here are the consequences of a noticeable shift in media use. Smart phones have become a permanent part of daily life and younger target groups are consuming television content on demand or on YouTube. It’s with good reason that some German YouTube channels have many millions of subscribers. On the other hand, technological developments like programmatic shopping and new targeting technologies are also supporting the digital market,” explains JOM Executive Director Michael Jäschke.
With this digital growth comes a slight decline in traditional media. This downturn in print media is not expected to end in 2017. JOM estimates that the amount of advertising expenditure in traditional television will remain nearly unchanged. Outdoor advertising and radio may very well continue growing. Outdoor advertising in particular is presenting an increasing amount of digital offers, which are now in greater demand among clients. Overall, the average price of media will increase by around 5% in 2017.
However, there are numerous factors that may affect this positive market forecast. The effects of the US election, Brexit and the upcoming parliamentary election in Germany remain to be seen. Furthermore, it is currently still unknown what effects the growing threat of terrorism in Germany will have on consumer behaviour in the medium term.