Advertising – a market worth billions
“A man who stops advertising to save money is like a man who stops a clock to save time” is a quote attributed to the pioneer of the automobile, Henry Ford. To put it another way, every company has to convince its customers of what it has to offer. “If you stop waving your flag in the market, you will be overlooked, leaving the market open to your competitors,” says Germany’s Central Association of the Advertising Industry (ZAW). Competitive pressure is indeed high: there are some 400,000 retail businesses in Germany endeavouring to win customers over and secure their loyalty, showcase brands and boost their revenue. The capital expenditure of the entire German economy on advertising alone – including fees, advertising production and media placement costs – amounts to around €30 billion a year. One of the industries with the highest level of expenditure is the retail sector. For example, a ranking of the German companies with the highest advertising expenditure includes retail companies such as Rewe, Edeka and the METRO GROUP sales line Media-Saturn.