4 - Internationalist
4 - Internationalist 4 - Internationalist
GERMANY: the return to robust ad market Germany is doing well again. It began with a highly successful World Cup and grew with a national satisfaction with a new leader. Now Germany is a strong European advertising driver. It should not be forgotten by marketers that Germany is the largest single nation in the EU with a population of over 82 million and is a very affluent country, being one of the worlds top export countries with over 80% of the GDP coming from export trade. Germany’s international business sweep is massive. Many would envy the country’s relationship with a key market like China, for example. Big industrial leaders like VW entered China early and are seeing the results now. While other markets like Ontario Canada are currently advertising in Germany to encourage business and manufacturing to come to the Canadian province. inter national ist looks at how multinational marketers and their agencies from around the globe are targeting Germany now, and learns why more campaigns are emanating from Germany today. Plus, we’ll see how both the media landscape and consumer attitudes have changed. We’ve selected a question and answer format to present varying points of view about the renewed, robust Germany from the following people: Axel Springer’s Michael Monheim, Vice President, New York Carat Global Management’s Anja Jung, Group Head Communication Consulting, Ismaning, Germany DAVINCI SELECTWORK’s Luc Samama, Client Service Director, Düsseldorf GWP/Handelsblatt’s Bob Breen, International Business Director, Düsseldorf International Graphic Press’ Carl Cullingford, Managing Director, London Mediaedge:cia’s Lothar Rentschler Managing Director, Düsseldorf SPIEGEL-Verlag’s Andrea Holzschneider, Advertising Sales, Hamburg Universal McCann Germany’s Michael Dunke CEO, Düsseldorf 26 inter national ist magazine
R E T U R N T O R O B U S T A D M A R K E T What shifts are you seeing that are particular to the German market? Michael Dunke, Universal McCann: In Germany there are currently two major developments. The first is the shift of ad investments from press (magazines, newspapers) to digital media. Digital media means with focus to online and increasingly to mobile. Today digital media is no longer an exception, but a basis for nearly all communications planning. The second is a big challenge specific to Germany, and that is the fundamental change in the TV offer systems caused by law. The German Anti-trust Agency has defined the country’s TV market as duopolistic. As a result, media practice has changed, and the current situation is insecure for all market partners. Bob Breen, GWP/Handelsblatt: Technical developments are the main catalyst in German media — whether it’s traditional TV or radio being upgraded from analogue to digital or new mobile applications for the market. The trend toward media convergence is unmistakable. Some of the media communications solutions in the new media and new facilities are still in the test phase, especially with community advertising. Micro-targeting and higher efficiency are the characteristics of future “integrated/cross media campaigns. Michael Monheim, Axel Springer: Although the German consumer is not an early adapter, the shift towards online is a pronounced trend in terms of media consumption, advertising and integrated cross media marketing. Print is still an important communication channel, although it is losing shares in younger target groups. Print publishers also increasingly try to shift their competence from print to the web. Consumers take the internet for granted in terms of media usage, especially since flat rates for higher and faster internet connections have made it accessible to everyday-life.” How are media solutions different now? Luc Samama, DAVINCI SELECTWORK: Integration is developing and finally moving from a buzzword into reality. And the growth of online is universal. But Germans are still ‘Bean Counters.’ ROI and effectiveness/efficiency measurement are becoming of paramount importance. Elaborate analytical tools are being launched, and McKinsey is selling more “MSE” (Marketing Spend Effectiveness) analyses to big corporate clients than ever. With media becoming more measurable and accountable than other disciplines, media suppliers’ certainly have much resting on their shoulders. The agency markets seems to be getting a little shaken up, as antitrust regulations now make rate calculation advertiser-dependent, rather than buying networkdependent. Plus, more clients are looking for better integrated communications solutions, which allows for many newer or smaller shops to take on larger roles.” Andrea Holzschneider, SPIEGEL-Verlag: On principle it can be found that media spending has recovered again since the collapse in 2000/2001. By 2006, figures had once again reached, and even surpassed, the level of 2000. According to Nielsen Media Research, gross spending for 2006 was distributed as follows: television: 45%, print: 42% (newspapers: 22%, magazines: 18%, specialist journals: 2%), radio: 6%, online: 4% and outdoor advertising: 3%. The Nielsen advertising statistics are the most common source of data in Germany. However it should be noted that they are based entirely on gross scores, and that some online organizations, such as Google, do not report their figures.” “Germany feels good about itself. We are World Cup Champions, Field Hockey World Champions, Ladies’ Soccer World Champions, Handball World Champions, Export World Champions, Nobel Prize Winners and Pope. That is all good atmospheric stuff for consumer spending and ad spending.” Bob Breen, International Business Director GWP media-marketing GmbH/Division of Handelsblatt, Düsseldorf r.breen@vhb.de www.internationalistmagazine.com 27
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GERMANY:<br />
the return to robust<br />
ad market<br />
Germany is doing well again. It began with a<br />
highly successful World Cup and grew with a<br />
national satisfaction with a new leader. Now<br />
Germany is a strong European advertising<br />
driver. It should not be forgotten by marketers<br />
that Germany is the largest single nation in<br />
the EU with a population of over 82 million<br />
and is a very affluent country, being one of the<br />
worlds top export countries with over 80% of<br />
the GDP coming from export trade.<br />
Germany’s international business sweep is<br />
massive. Many would envy the country’s<br />
relationship with a key market like China, for<br />
example. Big industrial leaders like VW<br />
entered China early and are seeing the results<br />
now. While other markets like Ontario<br />
Canada are currently advertising in Germany<br />
to encourage business and manufacturing to<br />
come to the Canadian province.<br />
inter national ist looks at how multinational<br />
marketers and their agencies from around the<br />
globe are targeting Germany now, and learns<br />
why more campaigns are emanating from<br />
Germany today. Plus, we’ll see how both the<br />
media landscape and consumer attitudes<br />
have changed.<br />
We’ve selected a question and answer format<br />
to present varying points of view about the<br />
renewed, robust Germany from the following<br />
people:<br />
Axel Springer’s Michael Monheim,<br />
Vice President, New York<br />
Carat Global Management’s Anja Jung,<br />
Group Head Communication Consulting,<br />
Ismaning, Germany<br />
DAVINCI SELECTWORK’s Luc Samama,<br />
Client Service Director, Düsseldorf<br />
GWP/Handelsblatt’s Bob Breen,<br />
International Business Director, Düsseldorf<br />
International Graphic Press’ Carl Cullingford,<br />
Managing Director, London<br />
Mediaedge:cia’s Lothar Rentschler<br />
Managing Director, Düsseldorf<br />
SPIEGEL-Verlag’s Andrea Holzschneider,<br />
Advertising Sales, Hamburg<br />
Universal McCann Germany’s Michael Dunke<br />
CEO, Düsseldorf<br />
26 inter national ist magazine
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