The death of search may be looming, but other formats are stepping up to drive digital advertising in Germany – and DooH is one of them. What's currently shaping on of the top five advertising markets is revealed in the government-backed Trend Monitor study.
Ad Market Shift: DooH and Retail Media Go Big
On Wednesday, the digital marketing show Dmexco has kicked off in Cologne – and the recently published Trend Monitor by the German Association for the Digital Economy (BVDW) gives the event a promising start. While the digital advertising market has lost some of the momentum it had in recent years, it continues to operate at an “extremely high level,” according to Ulrich Kramer, spokesperson for media agencies at the BVDW. The market also has three strong growth drivers: Retail Media, DooH, and Video.
The “extremely high level” is reflected in the demand for digital advertising reported by media agencies in Germany: 89 percent describe it as “rather strong” or “strong.” Optimism for 2024 is slightly tempered but still present. Looking ahead to 2026, respondents expect the overall digital advertising market to grow by five percent.
Retail Media needs to prove itself
Digital Video continues to be the leading medium in digital advertising, according to the Trend Monitor. Eighty-nine percent of German agencies consider it the most effective form of advertising, and 97 percent expect it to remain relevant over the next five years. Retail Media is gaining importance, but the hype phase is over. Now, the medium – both online and in stores – needs to be professionalized with standards and measurable sales effects. The biggest challenge cited by respondents is booking campaigns without going through a contact person at the retailer. DooH, on the other hand, is no longer just a hype – it is a stable growth driver.
In the coming years, media agencies expect large platforms to have an increasing influence – not only in traditional areas like TV and radio but also in DooH. Media diversity is now receiving stronger political recognition, which agencies welcome; however, they call for clear regulations and fair competition.
The search for tracking alternatives
Most digital advertising solutions rely on third-party cookies – DooH being one of the few exceptions. This is why agencies see digital identifier solutions as critical for success in the post-cookie era: 78 percent view them as key, and 86 percent call for integration into systems.
The changing role of media agencies
With the rise of AI-generated content, media agencies will no longer just be campaign service providers. To survive, they must establish themselves as indispensable strategic partners. Agencies aren’t intimidated by this shift: 81 percent see it as an opportunity to expand their services, and 93 percent see it as a chance to strengthen their competitive position. Their success will depend on how well they can combine data, technology, and creative expertise under one roof.
In short: The digital advertising market remains strong, driven by Video, Retail Media, and DooH, while Search is losing ground. Standards and identifier solutions will be crucial for the future. In the AI era, agencies are evolving into strategic navigation partners.
