German advertising market to rise to 24 billion EUR in 2019

German advertising market to rise to 24 billion EUR in 2019 – digital media remain core growth drivers

Hamburg, January 07, 2019. The JOM agency group forecasts net advertising market growth of just under one percent in 2019. This means that the German advertising market will continue its growth in the new year after 2017 and 2018 but will lag behind the overall economic development, which according to current forecasts will be in the range of around 1.5% growth.

According to JOM calculations, the expected volume of the advertising market will rise to 24.0 billion EUR in 2019.

As in previous years, the decisive drivers are to be found in the area of digital media. The market is booking new investments in the areas of online moving images and addressable TV. This gives regionally active advertisers in particular the opportunity to be active in the area of TV advertising or to target their spots regionally via environments such as YouTube or media libraries.

Despite increasing regulation, influencer marketing continues to grow in volume. It is estimated that German companies now invest half a billion euros in this form of advertising communication. And the trend is clearly upward.

Online banner ads on desktop computers, on the other hand, are increasingly being replaced by formats on mobile devices. A significant shift is taking place here.

Among traditional media, the momentum in outdoor advertising will be maintained in 2019, according to the experts at JOM. The outlook for radio and the development of online audio is also positive.

For TV, the signs are initially pointing to hold; the further development of new technical possibilities, above all addressable TV, remains exciting to watch.

“TV viewing time among young people under thirty has fallen by around 20% over the past five years. This inevitably leads to changes in the structure of the market. In other words, we will see declining TV advertising investment in the medium term. How quickly depends among other things on whether platforms such as Netflix or Amazon fire open up further to advertisers,” says JOM Managing Director Volker Neumann.

According to JOM’s forecast, average media price increases will be around 7 percent in the coming year. The main drivers are TV and radio.