The JOM Group predicts that the advertising market in Germany will only see a growth of 0.5% in 2023.
In 2022, the German advertising market showed signs of recovery from the effects of the Covid-19 pandemic. However, external factors such as the Ukraine conflict and supply bottlenecks have hindered its progress.
According to the JOM Group, net advertising investment in 2022 increased by only 1.2%. This growth was affected by a decline in investments during the second half of the year.
The JOM Group anticipates even weaker growth of around 0.5% in 2023, bringing the total volume of the market to approximately 22.7 billion euros.
With a weak economic environment and declining household consumption, the focus on sales in communication is shifting more towards performance-focused online channels and the retail media sector. In terms of media channels, budgets are expected to shift from conventional TV to digital moving image platforms like Amazon Freevee, Netflix, Disney+, and emerging platforms like Twitch.
The JOM Group also predicts significant shifts in the use of conventional flyers, with a focus on digital advertising channels due to increased printing and distribution costs.
The success of the advertising market in 2023 will depend on the first four months of the year, as consumers will feel the full impact of inflation. The return on investment and the volumes allowed by companies’ sales performance will be crucial during this period.
Germany’s advertising market is facing challenges in its growth due to external factors and economic conditions. The JOM Group predicts only a marginal increase of 0.5% in the advertising market for 2023. The market had shown signs of recovery in 2022, but factors such as the Ukraine conflict and supply bottlenecks have prevented further growth.
With declining household consumption and high inflation rates, the focus on sales in communication is shifting towards performance-focused online channels and the retail media sector. Budgets are expected to shift from conventional TV to digital moving image platforms like Amazon Freevee, Netflix, Disney+, and emerging platforms like Twitch. Additionally, the use of conventional flyers may see a decline in favor of digital advertising channels, as printing and distribution costs increase.
The success of the advertising market in 2023 will largely depend on the first four months of the year, where the impact of inflation on consumers’ pockets will be felt. The return on investment and the volumes allowed by companies’ sales performance will be critical during this period.
Unique Perspective: As digital platforms continue to evolve and consumer behavior shifts, the advertising market in Germany must adapt to meet the changing demands of the audience. By focusing on performance-driven online channels and leveraging emerging platforms, advertisers can effectively reach their target audience in an increasingly digital landscape. However, it is essential for companies to carefully evaluate their return on investment and allocate their resources strategically to navigate the challenges posed by the recession and changing consumer preferences.
