German Advertising Market Poised for Growth in 2025
Despite an uncertain economic backdrop, the German advertising market is expected to continue its upward trajectory in 2025. According to JOM Group, a leading hybrid marketing communication agency, net advertising expenditure in Germany is projected to rise by 3.2 per cent, bringing the market volume to over €30 billion.
This growth comes after a robust performance in 2024, showcasing the advertising sector’s resilience amid economic challenges. While broader economic conditions remain subdued, the advertising industry continues to demonstrate its adaptability and potential for expansion.
Digital Video and Retail Media Lead the Charge
Key factors driving this growth include the rapid rise of digital video advertising and the expansion of retail media. Platforms such as YouTube, Netflix, and Amazon are not only sustaining but increasing their reach significantly. Additionally, streaming services like RTL+ and Joyn, alongside social platforms such as TikTok, are establishing themselves as crucial advertising channels.
Retail media is emerging as a particularly strong growth driver. Retailers are increasingly offering tailored advertising spaces, combining sales-focused promotions with powerful data-driven insights. This approach enables advertisers to reach target audiences more effectively, bridging the gap between marketing efforts and consumer purchasing decisions.
Out-of-Home Advertising Gains Momentum
Out-of-home (OOH) advertising is set to remain a high-performing segment in 2025. Years of digital transformation and the integration of data-driven targeting have propelled OOH advertising to unprecedented levels. Double-digit growth rates recorded in 2024 are expected to carry over into the coming year, as brands increasingly leverage its wide reach and impact.
Meanwhile, the television advertising market is forecast to maintain stable expenditure levels, while print media continues to face a slight decline in revenues, reflecting shifting consumer habits and media consumption trends.
Economic and Political Uncertainty Looms
Despite these optimistic projections, challenges remain. Ongoing conflicts in Ukraine and the Middle East, coupled with political shifts in Germany and the USA, could influence market dynamics. Should economic conditions fail to improve substantially by mid-2025, marketing budgets may come under renewed scrutiny, limiting growth potential.
Digitalisation as a Catalyst for Market Expansion
The advertising industry’s evolution is being shaped significantly by advancements in digitalisation. Digital networks and data-based targeting are streamlining advertising processes, offering measurable results and enhancing cost-efficiency. This evolution is lowering entry barriers, providing smaller businesses with affordable, user-friendly tools to tap into the advertising ecosystem.
Volker Neumann, Managing Director of JOM Group, highlights the transformative impact of digitalisation: “The increasingly interconnected media landscape enables precise and data-driven advertising. This efficiency makes advertising more appealing for businesses, while self-booking tools empower smaller companies to participate seamlessly. The result is a wealth of untapped potential that will positively influence the market.”
Looking Ahead to 2025
While uncertainties persist, the German advertising market remains on a growth trajectory, underpinned by digital innovation and evolving consumer behaviour. As advertisers continue to explore new channels and harness data-driven strategies, the industry is poised to overcome challenges and deliver sustained progress.