Adspend rises in Germany

13 January 2011

BERLIN: Adspend levels climbed by more than 10% in Germany last year, as marketers heightened their outlay in line with the improving financial environment.

Research firm The Nielsen Company reported that main media expenditure reached a record €25bn ($32.7bn; £20.8bn) over the course of 2010, equivalent to 11% growth.

Television retained its dominant position on €10.9bn, having recorded a 16.2% annual increase.

Newspapers generated a 1.1% rise, registering €5.4bn, while consumer magazines enjoyed a 4.3% leap, posting €3.6bn in all.

Demand for radio spots strengthened by 5.2% to €1.4bn, outdoor yielded a modest 1.3% jump to €970m, and cinema revenues expanded 12.2%, hitting €81m.

Online witnessed more favourable trends still as brand owners dedicated €2.4bn to this channel, a 34.8% surge measured against 2009.

"Many factors influenced the positive development of the advertising market in 2010," said Ludger Wibbelt, managing director, Nielsen Germany.

"Besides a weak previous year, the generally good economic climate and a good outlook for Germany also played a significant role in the upturn."

An 8.8% improvement in the first quarter was followed by a 10.9% lift in Q2, with the third and fourth quarters similarly providing double-digit gains, peaking at 16.5% in September.

Carmakers such as BMW, Daimler and KIA all boosted their emphasis on image advertising, and apparel specialist Esprit allocated greater resources to promoting its corporate brand.

But Procter & Gamble, the FMCG giant, topped the spending charts, investing €590m across 2010.

Data sourced from Nielsen/Horizon; additional content by Warc staff