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Advertising Agencies in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: October 2024 WZ M73.11DE

Revenue

€20.3bn

2024

€20.3bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

146k

Businesses

29,428

Wages

€X.Xbn

Advertising Agencies in Germany industry analysis

The advertising industry is a highly fragmented but highly competitive sector that includes many owner-managed agencies alongside various global players. Consumer spending has been dampened by crises such as the pandemic, the outbreak of war in Ukraine and high inflation rates. The uncertainty associated with the crises has reduced companies' willingness to invest in and advertise new products and brands, which has led to a 1.1% decline in industry turnover over the past five years. With the economic recovery, turnover in the sector is expected to increase again by 1.2% to 20.3 billion euros in the current year.New technological developments and advancing digitalisation have led to rising demand in the area of online marketing. Government and private spending on development and research also indirectly favours the order situation for advertising agencies, as new developments in products and services also increase the demand for advertising, which has a positive effect on advertising agency sales. Rising consumer spending is also increasing the turnover of industry players, as companies are more willing to invest in advertising campaigns as a result.The intense competition facing the advertising industry is likely to continue in the coming years. In response to companies' increasing desire to obtain services from a single source, the number of agency networks is rising, which will also intensify competition further. However, the improvement in the economic situation and the expected further increase in consumers' willingness to spend harbours growth potential for the advertising industry. Diversification in the area of online marketing and the recruitment of highly qualified employees with expertise in programming, generative AI, web analysis and search engine optimisation will become increasingly important. IBISWorld expects industry turnover to increase at an average annual rate of 1.9% over the next five years, reaching 22.3 billion euros in 2029.

Trends and Insights

  • Due to the increasing popularity of digital media, a mix of digital and print media as well as TV advertising is becoming more and more important. Cross-media marketing campaigns are particularly popular with large corporate customers.
  • The internet advertising sector is the industry segment with the highest turnover. Search term-based online advertising accounts for around 60 % of the online advertising market.
  • The large population and the large number of economically strong companies attract advertising agencies to the centre region. The media city of Köln is a particularly attractive location.
  • Many PR agencies are expanding their range of services and increasingly offering advertising services as well. Their broad range of services gives PR consultancies an advantage over advertising agencies, which rarely have PR consulting expertise. Companies often prefer to obtain both services from a single source.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated €20.3bn in 2024.

Trends and Insights

In the meantime, poor economic conditions led to a drop in sales in the advertising industry

  • In 2020, many companies in Germany experienced liquidity bottlenecks during the pandemic, which they often initially compensated for by cutting their advertising budgets. In addition, given the great uncertainty among consumers, many companies saw little chance of persuading them to significantly increase consumption through advertising.
  • Additional trends and insights available with purchase
Advertising Agencies in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Investments and a high propensity to consume are fuelling sector growth

  • In anticipation of an improving economic situation and consumer sentiment, and in view of the unbroken desire of end consumers for product variety and personalised goods, companies are expected to be more willing to invest in marketing expenditure again in the coming years.

Biggest companies in the Advertising Agencies in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Serviceplan Group SE & Co. KG
1,004.1
WPP plc
596.3
Publicis Groupe S. A.
328.1

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Advertising Agencies in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Internet advertising, Print advertising and Television advertising. Internet advertising is the largest segment of the Advertising Agencies in Germany.

Trends and Insights

The growing importance of social media is increasing the share of internet advertising in industry sales

  • Internet advertising includes search engine marketing, display ads, in-stream videos, in-steaming audio and online adverts. Retail media and email marketing also fall into this segment.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Advertising agencies develop advertising and marketing campaigns that are placed in print media as well as on radio, television and the internet. Companies in this sector are also active in the field of outdoor advertising, the dispatch of product samples, shop window design and marketing consultancy. Market research, public relations consulting, the publishing of advertising material and the production of advertising programmes for television and film are not included.

What's included in this industry?

Internet advertisingPrint advertisingTelevision advertisingPostal advertisingOutdoor advertisingRadio advertisingCinema advertising

Companies

Serviceplan Group SE & Co. KGWPP plcPublicis Groupe S. A.

Purchase this report to view all 4 major companies in this industry.

Related Terms

QR CODEPUBLIC RELATIONS (PR) AGENCYBELOW-THE-LINE COMMUNICATIONPROGRAMMATIC ADVERTISINGADDRESSABLE TVSMART TVVIDEO-ON-DEMAND

Industry Code

WZ 2008

WZ 73.11 - Advertising Agencies in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Due to the increasing popularity of digital media, a mix of digital and print media as well as TV advertising is becoming more and more important. Cross-media marketing campa...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The internet advertising sector is the industry segment with the highest turnover. Search term-based online advertising accounts for around 60 % of the online advertising mar...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The large population and the large number of economically strong companies attract advertising agencies to the centre region. The media city of Köln is a particularly attract...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Many PR agencies are expanding their range of services and increasingly offering advertising services as well. Their broad range of services gives PR consultancies an advanta...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. Most companies in the sector are small and medium-sized advertising agencies that focus on local clients.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Serviceplan Group SE & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of WPP plc's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Publicis Groupe S. A.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Serviceplan Group SE & Co. KG, and factors influencing its performance in the industry
  • Description and key data for WPP plc, and factors influencing its performance in the industry
  • Description and key data for Publicis Groupe S. A., and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The advertising industry is subject to strict regulation. For example, the law against unfair competition prohibits the disparagement of competitors in the context of adverti...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The cost of materials is the largest cost item for advertising agencies. The largest share of expenses is attributable to IT equipment, in particular high-performance hardwar...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Advertising Agencies industry in Germany in 2024?

The market size of the Advertising Agencies industry in Germany is €20.3bn in 2024.

How many businesses are there in the Advertising Agencies in Germany industry in 2024?

There are 29,428 businesses in the Advertising Agencies industry in Germany, which has grown at a CAGR of 0.2 % between 2019 and 2024.

Has the Advertising Agencies industry in Germany grown or declined over the past 5 years?

The market size of the Advertising Agencies industry in Germany has been declining at a CAGR of 1.1 % between 2019 and 2024.

What is the forecast growth of the Advertising Agencies industry in Germany over the next 5 years?

Over the next five years, the Advertising Agencies industry in Germany is expected to grow.

What are the biggest companies in the Advertising Agencies market in Germany?

The biggest companies operating in the Advertising Agencies market in Germany are Serviceplan Group SE & Co. KG, WPP plc and Publicis Groupe S. A.

What does the Advertising Agencies in Germany include?

Internet advertising and Print advertising are part of the Advertising Agencies industry.

Which companies have the highest market share in the Advertising Agencies in Germany?

The company holding the most market share in Germany is Serviceplan Group SE & Co. KG.

How competitive is the Advertising Agencies industry in Germany?

The level of competition is high and increasing in the Advertising Agencies industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Public Relations & Communications Activities in Germany
  • Media Representation in Germany

Complementors

  • Management Consultants in Germany
  • Market Research & Public Opinion Polling in Germany

International industries

  • Global Advertising Agencies
  • Advertising Agencies in the US
  • Advertising Agencies in Canada
  • Advertising Agencies in Australia
  • Advertising and Market Research Services in New Zealand

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.