Despite the current slowdown in the ad sector, 2001 is still expected to see growth in German ad revenues, according to the nation’s advertising federation ZAW.
Adspend is forecast to rise from E33.2 billion in 2000 to E34bn this year – a growth rate of over 2%, outstripping the outlook for Germany’s economy as a whole. Such expectations seem to be shared by ZAW’s member companies – in a survey conducted by the body, one-third predicted a rise in adspend compared to only 3% forecasting a fall.
President Manfred Lange conceded that the sector could not repeat last year’s astounding 5.6% growth, following a downturn in adspend at the start of 2001. However, he cited insurance, pharmaceuticals, retail and media as industries to spend heavily this year. There are also hopes that government pension reforms and the run-up to the introduction of euro currency will also boost adspend.
Last year the media sector occupied the nation’s number one adspend slot for the first time, increasing its expenditure by 25% to E1.7bn, overtaking the auto industry in the process. Lagging in third and fourth places respectively were the telecoms and retail sectors, both of which upped their ad expenditure by around 20%.
News source: Handelsblatt (Germany)