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Advertising has a big influence on print demand, and further increase in advertising spending in 2006 meant good news for the print industry in Germany. In fact, the BVDM (Bundesverband Druck und Medien) estimates that 62% of all print products are purely or partly advertising driven. The improving economic climate for the whole economy stimulated demand as well. After 3 years of decline, the German advertising industry reversed its fortunes in 2004 and is on a growth path again, as 2006 growth doubled compared to 2005 growth rates. After achieving a small growth of 1.3% in 2005, the total advertising market rose by 2.6% in 2006, according to the German advertising association (ZAW).
Nielsen media research noted an increase of 5.1% of advertising expenditures in the classic media compared to 2005, or a total of €20.1 billion. Including direct mail, online, cinema, and some additional outdoor categories, Nielsen reports a total of €23.9 billion for 2006. Differing growth rates depend on how advertising spending is accounted for and which types of advertising media are considered. According to ZAW, newspapers have been able to turn the tide, as advertising grew by 1.3% in 2006, recovering the losses of 2005. The newspaper segment still suffered the biggest loss of any advertising segment in terms of revenues since the height of the boom in 2000. Traditional display and classified advertising is still in decline, but German newspapers are gradually turning to other business activities and opening up additional revenue sources such as books, DVDs, and online content, and they are also including more inserts. Classified and free publications increased again in 2006, but at a lower rate of 2.4%, after experiencing better than average gains in 2004 and 2005. This follows a trend away from traditional daily newspapers in favour of other news publications. In a similar vein, there are increases for weekly and Sunday newspapers as well as newspaper inserts. Both of these segments are comparatively small, but they experienced healthy growth. Meanwhile, Nielsen reported 10% growth in advertising spending for all newspapers in 2005. After 5 years of decline, consumer magazines posted a growth of 3.6%, while directory revenues essentially stayed flat. Business publications again outdid other publications, posting a 6.0% increase in 2006. Overall spending for print media remained stable in 2006 at 47% of the total. According to ZAW, the growth in advertising revenues in 2006 was partially driven by an increase in the number of brands advertised, which increased from 61,000 in 2005 to 64,000 in 2006. The football world championship in Germany also boosted spending in 2006, but this was mainly in the area of TV. Based on the small share of GDP spent on advertising in Germany and an expected increase in internal demand, projections for the advertising industry for 2007 are favourable. The preceding is an excerpt from InfoTrends’ report entitled “German Print On Demand Market Forecast: 2006-2011.” To learn more about the report or to make a purchase, visit our online store or contact Robyn Wuori at +1 ext. 103 or . |
