Submitted by: Ulbe Jelluma 30/08/2016
The 2016 DialogMarketing Monitor from Deutsche Post concludes that 1 out of 4 companies with a turnover of less than €25 million use a mix of three channels (in most cases newspaper/magazine advertising, outdoor and personalised mail). Of the large companies, turnover > €25 million, half integrate the different channels.
The use of integrated advertising has still a long way to go based upon these facts. German brands and agencies are apparently lagging behind a general tendency in other Western-European markets. When analysing award festivals such as the IPA, EFFIES and Cannes Lions one can see that winning campaigns almost in all cases consists of a mix of channels.
Strong position mail
The report from Deutsche Post shows the strong position of mail among the different channels. Like in the UK, mail is among the dominant channels.
Top 4 largest channels in Germany
1. Newspaper/magazine advertising €10.8 billion
2. Personalised mailing €8.8 billion
3. TV advertising €7.5billion
4. Online advertising €7.4 billion
The total value of mailings (personalised and non-personalised - including doordrops) increased with €0.2 billion to a total of €11.3 billion. Mailings are used more frequently in certain industries. Of all the German companies 17% use personalised mailings, totalling 607.000 companies with an average spend of €14.500. As in many countries, retailers are the heavy users of mailings. 20% of all the companies use mailings to build a relationship with their clients. Retailers invest on average €30.000 on mailings which represents 32% of their advertising budget. The large companies in Germany (> €25 mio turnover, 40.000 companies) represent by far the largest share of all advertising expenditures. At the same time they spend most on personalised mailings, on average €385.800. Personalised mailings are surprisingly the most important channel for these companies with a 21% share of their total advertising budget. These companies spend more on mailings than on TV advertising.
The Deutsche Post makes a distinction between Dialogue marketing media and Classic media. Dialogue media include: personalised mailings, partly or non-personalised mailings, online media (Display and video, Search, e-mail, Social media) and telephone marketing. Classic media include Newspaper and Magazine advertising, TV, inserts, Outdoor, Radio and Cinema. Of the total advertising expenditures of €48.3 billion, 44% is spend on Dialogue channels and 56% on Classic channels.
Like the calculation made in the UK, this is a very interesting overview as for once we can judge the importance of direct mail by the figures. Germany remains a very strong print oriented market with the two most important channels representing print. And mail taking the Top 2 position.
The Dialogmarketing 2016 report from Deutsche Post covers many more facts about the German advertising market. Click here for the download.