German adspend rises

15 July 2011

BERLIN: Adspend levels have risen by almost 5% in Germany this year, benefitting nearly all main media channels.

Nielsen, the research firm, estimated advertising expenditure in the country increased by 4.6% on an annual basis during the first half of 2011, reaching €12.1bn.

Ludger Wibbelt, Nielsen's managing director, reported that the rate of growth remained essentially constant when broken down by quarter.

"The advertising market grew by 4.5% in the first quarter and ended the second quarter a shade better off, with a gain of 4.7%," he said.

One trend identified by the study was related to the on-going FIFA Women's World Cup, being held in Germany, which has attracted around €60m in advertising outlay.

By comparison, the 2006 World Cup for men hosted in Germany yielded €562m, a fact Nielsen argued was hampering the development of the female game, as broadcasters proved less keen to show it.

Corporate-level advertising climbed by €104m to €338m, largely thanks to campaigns by firms like Esprit and Procter & Gamble.

Automakers boosted their spending by €61m, hitting €759m, with Seat recording a €13m expansion, Toyota providing a €12m jump, and Opel supporting an €11m lift.

Elsewhere, Danone, the dairy giant, cut its expenditure by 45.6%, or €45m, contributing to a significant contraction across its sector as a whole.

Retailers also delivered a €52m collective decline, according to Nielsen.

By medium, TV witnessed a 2.6% improvement in ad sales, to €5.1bn, but newspapers endured a 0.6% slide, registering €2.5bn.

Consumer magazines saw a 3.8% gain, to €1.8bn, and online display enjoyed a 26% surge, to €1.3bn.

Radio experienced a 3.2% leap, securing €674m, while outdoor returns increased by 11.2%, attaining €509m overall.

Data sourced by Nielsen; additional content by Warc staff