German ad market gets kick from Cup

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The German advertising industry grew in 2006 for the third year in a row but has not necessarily completely recovered from the advertising recession of 2001-03, according to the Central Association for the German Advertising Industry.

The association this week released its analysis of last year's figures.

The good news was that growth in advertising overall — including ads in electronic and print media as well as posters and direct mailings — came in at 2.1% for '06. TV commercials were up more than twice that rate, 4.7%, with total TV ad revenue of €4.1 billion.

Analysts attributed a good deal of the above-average growth to last summer's World Cup soccer tournament in Germany, when much of the country was glued to their TV from lunchtime to bedtime every day for a month.

But Germany still lags way behind other major European Union nations in terms of advertising investment, which from 1996-2005 sank 3% in the country. In comparison, advertising spending came closer to doubling in the U.K. and Italy during the same period.

Total advertising spending in Germany in '06, at more than €30 billion, is about the same as it was in 1998, the group found.

Still, the group predicted growth of 2% for advertising spending in Germany for this year.

German broadcast giant ProSiebenSat.1 this month gave a slightly more bullish projection for '07. CEO Guillaume de Posch forecast an increase of 2%-3% in Germany's overall advertising market, with ProSieben expecting to outpace the market.
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