Germany's advertising market is witnessing a notable shift as traditional search advertising experiences a decline. Digital out-of-home (DOOH) and retail media are taking on increasingly prominent roles. The latest Trend Monitor from the German Association for the Digital Economy highlights this transformation, emphasizing that while digital advertising remains a stronghold, with 89% of media agencies reporting sustained demand, the spotlight is moving toward these dynamic formats.

DOOH: From Trend to Stability

Digital out-of-home advertising has evolved from an experimental approach into a dependable growth driver. Media agencies now consider DOOH a stable and integral element of their advertising strategies, anticipating continued expansion. This growth is fueled by advancements in programmatic advertising and the capacity to deliver dynamic, location-specific content.

The widespread integration of digital screens in public spaces, including bus stops, shopping centers, and transportation hubs, has increased campaign reach and engagement. DOOH campaigns are now recognized not only for visibility but also for measurable performance in an increasingly competitive market.

Retail Media: Maturing and Professionalizing

Retail media, which encompasses both online and in-store advertising, is establishing itself as a key player. Initial enthusiasm has shifted toward a demand for professionalism, standardization, and quantifiable outcomes. Agencies note challenges in booking campaigns directly through retailers, highlighting the need for streamlined processes. Despite these obstacles, retail media continues to grow and is expected to exert greater influence in the years ahead, offering brands an opportunity to connect with audiences in both digital and physical retail environments.

The Decline of Search Advertising

Search advertising, once a cornerstone of digital campaigns, is witnessing a gradual decline. The Trend Monitor indicates that although video advertising remains highly effective, search advertising is losing momentum. This change reflects evolving user behaviors and the growing appeal of alternative formats, particularly DOOH and retail media, which offer more dynamic engagement opportunities.

The Need for New Tracking Solutions

As third-party cookies become less viable, tracking and measuring campaign effectiveness has emerged as a critical challenge. DOOH is positioned advantageously, relying less on cookies and offering a model for future advertising approaches. Agencies emphasize the development of digital identifier solutions to maintain accountability and optimize campaign results in this new environment.

The Evolving Role of Media Agencies

The advent of AI-generated content is redefining media agencies’ roles. Agencies are transitioning from traditional service providers to strategic partners, integrating data, technology, and creative expertise. A substantial majority of agencies view this shift as an opportunity to broaden services, enhance competitive positioning, and guide clients through increasingly complex digital landscapes.

Looking Ahead

Germany’s digital advertising market is set for sustained growth, driven by the maturation of DOOH and retail media. As traditional search advertising diminishes, these emerging formats are becoming central to campaign strategies. The industry is focusing on standardization, innovative tracking solutions, and the strategic integration of technology. For media agencies, adapting to these developments represents both a challenge and a necessary step to maintain relevance and influence in the evolving digital ecosystem.