The advertising industry is cautious about the future

“Finally stop this advertising!” That is the motto of this year’s “OWM Summit”, at which the members of the organization advertisers in the brand association discuss the topics that concern brands and agencies. Why the provocative motto? As an industry, you are actually convinced of yourself: According to a survey among the member companies of the OWM, 100 percent of advertisers say that advertising is “the fuel for brand success”. As a counterbalance and a healthy self-assessment, only 26 percent assume that advertising enjoys a high level of acceptance among consumers. At the OWM Summit, the industry therefore wants to discuss how advertising can be designed to be relevant to customers and how it can credibly convey a brand message, especially with regard to the topic of sustainability.

The industry also has completely different problems, as became clear at the Advertisers’ Night that took place on Tuesday evening, the informal part of the event that preceded it. Despite the good mood, the talks in Berlin’s E-Werk seemed serious. Like many other industries, advertising has been hit by the economic downturn, inflation and poor consumer sentiment. “Actually, tomorrow we should be much more concerned with how we deal with the crisis,” judged one participant with a view to today’s upcoming program.

Your judgment is not unfounded. In the survey, 97 percent of member companies said the overall economic situation would deteriorate. After all, 56 percent assume declining income. 44 percent, on the other hand, expect income to remain the same or even increase.

Hope after two hard years

Despite the negative economic outlook, members largely assume that advertising budgets will remain stable in 2023. “Expenditure on advertising is still the third-largest item for a company after personnel and raw material costs,” explained another participant at the Advertisers’ Night. OWM Managing Director Susanne Kunz, who presented the results of the survey, spoke on Wednesday of the hope that advertisers would defend their advertising investments after two tough years.

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