Media & Advertising

Germany has the largest advertising revenues in Europe - next to Great Britain. In 2020, the industry generated a market volume of around EUR 45 bn, which corresponds to a share of GDP of about 1.3%. Around 900 k people are employed in the media and advertising industry in Germany. The media industry includes all companies involved in the development, production and distribution of media content for information and entertainment purposes.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Marian Gerster

Current Developments

Winning the future

More than almost any other industry, the media and advertising industry is influenced by the advancing digitalisation. Advertising agencies are increasingly relying on digital forms of advertising, especially online advertising. The boundaries between technology providers and content producers are becoming increasingly blurred.

Growth Rates

2020

-9.2%

2021

+2.9%

2022

4.7%

Trends

Core Web Vitals

The Core Web Vitals are new Google metrics to evaluate the user experience or user-friendliness of mobile, but also desktop views of a website.

Transactions

Our Sector Transactions

0

Highlight Transaction

Westiform GmbH x PentaPart Beteiligungskapital GmbH

Number of M&A transactions - DACH region, 2021 (as of August)

26

Significant Transactions

Mediengruppe RTL Deutschland GmbH X Gruner + Jahr GmbH (2021)

Future Trends

Future trends are clearly marked by the advancing digitalisation of the media and advertising industry. Digital media are moving further and further into the foreground - already in 2020, Facebook and Google together took every third advertising dollar worldwide. We are also heading into a post-cookie era. Targeted marketing as we know it today will then no longer be possible. This increases the importance of first party data and ID alliances enormously.

Our View

The megatrend of digitalisation is having a noticeable impact on the media and advertising industry. Even before the Covid 19 pandemic, the influence of digital media was increasing significantly. The Corona crisis further strengthened this trend. At the same time, digital media show considerable growth potential, especially in the area of mobile devices. Digital skills therefore play a central role in the future development of companies within the industry.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"The increasing desire for full-service providers means that many advertising agencies are expanding their service portfolios – both organically and through acquisitions of agencies with complementary product ranges."

Marian Gerster

Director

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.