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Mobile to power more than half of digital ad spend in Germany this year

Data by eMarketer estimates that mobile ad spending in Germany will reach €3.2 billion (US$3.5 billion) this year, representing more than half (57.2 per cent) of all digital ad spending for the first time.

eMarketer mobile Germany ()

Total media ad spending in Germany –  which includes digital and traditional – will reach €18.4 billion (US$20.4 billion) in 2017, a yearly growth of 1.4 per cent. Digital will account for 30 per cent of the market or €5.53 billion (US$6.12 billion), making it the country’s largest media type by ad investment.

On a quick side note, eMarketer chairman and chief innovation officer Geoff Ramsay will be at Digital Innovators’ Summit 2017 on Tuesday 21 March, talking about “the epic battle for consumer attention in a digital world”. See the full agenda here.

According to eMarketer’s latest ad spend forecasts for Germany, TV will continue to hold its own, growing by 2.5 per cent this year. In 2017, just over a quarter (25.3 per cent) of all media spend in Germany will go to TV, representing US$5.16 billion (€4.67 billion). 

Germany has a highly educated population that also skews older, and print newspapers have fared much better here against digital competition than in many other European markets. But this year will represent a milestone: newspapers will actually fall behind TV in terms of ad spend, taking a 24.0 per cent share or €4.4 billion (US$4.9 billion). TV remains the first-choice platform for many traditional industries; automotive brands still typically prioritise TV spots, for example.

Mobile’s majority share of digital isn’t the only notably change in ad spending patterns in Germany. The country has a highly educated but also slightly older population, both factors that have helped newspapers fare much better against digital competition than in many other European markets. Nonetheless, 2017 represents a milestone for newspapers. This year eMarketer predicts newspapers’ share of ad spending will slip to 24.0 per cent as investment declines to €4.47 billion (US$4.95 billion). As a result, TV will surpass newspapers for share of total media ad spending for the first time. TV ad dollars will grow 2.5 per cent to €4.65 billion (US$5.14 billion), representing just over a quarter (25.3 per cent) of paid media ad spend.

“Germany’s ad marketplace is remarkably well balanced, offering brands a wide spectrum of options to reach various target audiences,” said Karin von Abrams, principal analyst with eMarketer. “Of course advertiser outlays will continue to shift towards digital platforms and mobile devices in particular. But the entire industry is also benefitting from the country’s very encouraging economic growth. Even the political and social uncertainties arising from factors such as the US presidential election and the UK’s Brexit vote haven’t dented the underlying stability and strength of Germany’s finances. This is very reassuring not just for Germany but for the larger European industry picture.”

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