German association publishes annual trend barometer

German association publishes annual trend barometer

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Advertisers anticipate growth in 2025 amid economic challenges

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  • Author:WFA

    WFA

News
20 January 2025

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Germany’s Advertisers Association OWM has unveiled its annual Trend Barometer, reflecting a cautiously optimistic outlook for brands in the country in the 12 months ahead.

Despite prevailing economic uncertainties, many companies remain hopeful about future performance, backed by a significant shift towards digital media investments.

According to the survey, conducted among OWM members in the last quarter of 2024, 59% of respondents anticipate improved revenues for 2025, building on the nearly 60% who reported better sales in 2024.

Their optimism is partly attributed to easing concerns on energy supply and supply chains. However, 63% expect a deterioration in the overall economic situation in 2025, expressing scepticism about political initiatives to stimulate growth.

Increased advertising investments

The survey indicates that 45% of companies increased their advertising spending in 2024, with only 19% reducing it. Looking ahead to 2025, 33% plan to boost their advertising budgets, while 18% anticipate cuts.

Increasing amounts of that investment will be via digital channels, with 88% planning to raise expenditures in Connected TV/Advanced TV (CTV/ATV) and 87% in online video. Retail media, influencer marketing and social media are also set to see increased investments, while traditional media such as print and classic TV face declining budgets.

However, the fragmentation of the media landscape poses significant challenges for brands, with 94% of respondents citing audience reach as a major concern. Additionally, 91% highlight the need for effective advertising impact measurement, and 86% identify cross-media measurement as a critical issue. The integration of artificial intelligence (AI) into marketing is also prominent on the agenda, with 73% identifying it as one of their top challenges for 2025.

An overwhelming 97% of OWM members acknowledge the crucial role of a diverse media landscape for society, with 51% feeling a shared responsibility for its preservation and underscoring the industry's commitment to this.

Article details

  • Author:WFA

    WFA

News
20 January 2025

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