Hamburg, 11 January 2016. Following this past year’s positive development, the German advertising market will continue to grow in 2016. This is the conclusion drawn by the Hamburg-based agency JOM (Jäschke Operational Media/JOM com) in its annual forecast. According to JOM, the net advertising spending of German companies will experience an increase of around 2.0% this year, and a volume of over EUR 23 billion will be reached.
JOM’s experts do not foresee a significant change for traditional media compared to last year. The ever-decreasing revenue of print media will be absorbed by the increase in media such as TV and outdoor advertising.
Digital advertising will continue to allow the total market to grow. As in the past year, the growth rates for mobile forms of advertising, online videos and content marketing will remain at a high level and will drive the market in 2016. With a volume of over EUR 300 million in 2016, advertising spending in mobile marketing, for example, will have more than doubled since 2014. The field of non-linear video media (online videos) shows a similar trend; JOM predicts a volume of just over EUR 400 million. JOM anticipates a considerably smaller increase for display marketing (+1.8%) and search engine marketing (+1.0%), which are the largest media branches in terms of volume.
‘The desire to invest will continue in 2016 because, as current information shows, economic growth will continue to remain stable. Private consumption will also represent a major prop. Digital media in particular profits from new technologies and more mobile media consumption as well as developments such as programmatic advertising,’ says Michael Jäschke, Executive Director of JOM Jäschke Operational Media/JOM com.
According to JOM, the German advertising market should not expect extra growth from major events such as the UEFA European Football Championship in France or the Summer Olympic Games in Rio.
It predicts that the average price of media in 2016 will increase by around 3%.