Hamburg, December 4th 2019. According to estimates by the JOM Group, the German advertising market will see slight growth of around 0.5 percent in the coming year. For the current year, on the other hand, the experts are currently only assuming an unchanged level of net advertising revenues compared to the previous year. According to JOM’s calculations, a market volume of around € 24 billion will thus not be reached until 2020.
Revenues from traditional, non-digital media will continue to decline in 2020 for the tenth year in succession. Print media revenues will continue to decline significantly. For linear TV, the bottom line will also be a slight minus at the net level. Outdoor advertising, on the other hand, will develop positively. Radio will also maintain its positive trend.
Digital advertising channels are again responsible for the slight increase in the overall market. Above all, the forms of advertising on mobile devices and the entire field of digital video advertising. Growth rates are between 20 and 30 percent. Across all digital advertising formats, net advertising revenues will therefore increase by around 6 percent in the coming year.
The growth of the advertising market will remain slightly behind the overall economic development in 2020. The experts at JOM do not expect any significant stimulus from the European soccer championships and the Olympic Games in the coming year. They assume a certain shift in timing within the year but not an increase in investment.
“Private consumer spending will continue to support the German economy in the coming year and at the same time it is highly relevant for companies’ advertising investments in this country. If this pillar falters, the advertising economy is likely to turn negative. In our estimation, the market will react more sensitively to economic factors in both positive and negative directions in 2020,” says Volker Neumann, Managing Director at JOM.
Considering the performance development, the average price increases of the media in the coming year will be around 4 percent, according to JOM’s forecast. The main drivers are TV and general-interest magazines.