Archive notice: This article was originally published on January 8, 2008. Links and embedded videos are preserved as part of the historical record.
This was the central result of a Kontakter trade-service survey of 42 senior managers from marketing, advertising agencies, publishing houses, broadcasters and portal operators (issue date: January 7). Media and advertising decision-makers also hope for positive impetus from the UEFA European Football Championship and the Summer Olympic Games. Digitalisation and the internet are becoming increasingly important.
Television
Michael Krautwald, Managing Director of ProSiebenSat.1 sales house SevenOne Media, expects advertising growth in the new year because of “consolidated domestic demand.” Competitor Martin Krapf, head of RTL sales house IP Deutschland, hopes particularly for additional advertising euros from retail groups. “After Edeka and Rewe took the pioneering role, other chains such as Real are following.” Retail branding will also “remain an important topic” in 2008, Krapf said. Great advertising potential also comes from sectors connected with pension provision. Achim Rohnke, head of ARD sales house AS&S, hopes for “noticeable impetus” from the two major sporting events. Television managers also see additional potential in digitalisation. Catherine Mühlemann of MTV Networks announced an HDTV offering from her channel: “Other providers will also become involved here.” Trends such as video on demand and the sale of video content will become a fixed part of the portfolio.
Publishers
Representatives of German publishers were more restrained. They mostly assume that advertising business will stagnate at the previous year’s level. “Growth in the advertising market seems to be passing consumer publishers by,” said Friedrich Wehrle, Managing Director of Motor-Presse Stuttgart (Auto Motor und Sport). Gains are primarily in online advertising, “putting other media types under pressure.” Modest bookings at the start of the year are creating problems for many publishers, because many companies are still holding back advertising funds. The reason is the unclear situation surrounding television, the leading medium. The Bundeskartellamt had forced the large TV sales houses to reorganise their business relationships with media agencies. “If there is indeed a sustained delay because of uncertainty in the TV market, such a dip would be difficult to make up,” said Andreas Schoo, a member of the management board at Hamburg’s Bauer publishing group (TV Movie). German publishing houses see growth opportunities primarily in expanding their own internet and digital activities. “Digitalisation is not an alternative but a necessity,” said Jens Müffelmann, head of electronic media at Axel Springer AG.
Online
The online industry looks much more optimistically to the year ahead. Fried von Bismarck, Managing Director of Spiegel-Net, expects market growth of 25 to 30 percent. Thorsten Ahlers, Managing Director of AOL Germany, assumes the internet can attract at least eight percent of advertising expenditure in 2008. The internet is becoming not only the backbone of the media industry but is also taking on this role in information, communications, entertainment and retail, said Matthias Ehrlich, board member of United Internet Media. Online decision-makers believe video advertising, video on demand, games, targeting and mobile marketing are major drivers of this evolution. Technical development also presents challenges for advertising, according to Philipp Welte, Chairman of Bild.T-Online: the need for creative, interconnected communications solutions is increasing. In 2008 it will also be about capitalising on the immense reach of social networks, SevenOne Intermedia’s Marcus Englert and RTL Interactive’s Matthias Büchs agreed.
Agencies
Networked communications solutions are also one of the major issues within the agency sector. “Consumer behaviour and perceptions of advertising will continue to change against the background of developing digital technologies,” said Anthony Gibson of Leo Burnett. “The convergence of media will probably occupy agencies and brand manufacturers more than ever in 2008,” believes Andreas Grabarz of Grabarz & Partner. In his view, however, this is also linked to uncertainty about the right strategy. Instead of agencies, companies are likely to listen even more to market research. Or, as Michael Samak of Saatchi & Saatchi predicted: “The consumer is the boss.”
Companies
Marketing managers themselves believe quality will be in demand above all in 2008. Martina Kicherer of DAB Bank said: “The days of ‘stinginess’ and ‘cheap’ are over. High-quality products and high quality standards are in demand.” These should be communicated with slightly increased advertising pressure. In communications, marketing managers also want to pursue integrated and mobile routes. “By far the most exciting topic in my view is mobile marketing,” said Nils Behrens of TUI. “You cannot reach customers more directly or personally.” Advertising’s task now is simply to find ways to make the mobile phone appealing to consumers as an advertising tool.
