A new Trendmonitor reveals Germany’s digital ad market is transforming rapidly, with AI-enabled advertising set to overshadow traditional search and video formats, prompting agencies to adapt strategically amidst emerging market complexities.
The latest Trendmonitor from the BVDW’s media agencies points to a German digital advertising market that is not only expanding, but also changing shape. According to the study, 70% of agencies now report strong demand, up sharply from 40% a year earlier, while the share describing demand as either strong or rather strong has climbed to 97%. That marks a clear improvement on the previous year and suggests that digital advertising has moved from a growth channel to a core commercial pillar for the sector. The report also indicates that agencies are entering a phase in which volume growth is being matched by structural change, especially in search, video and AI-enabled formats.
The clearest shift is in the future role of classic search and display. The study says Search Engine Advertising will lose ground over the next five years, falling from 77% to 39% in perceived relevance, while AI-supported conversational advertising is expected to move from a niche position to a dominant one. The BVDW’s own summary says 94% of respondents believe advertising in AI environments will play a leading role within five years. Video remains important, but its status appears less secure than before: it is still a major channel today, yet the forecast suggests it will sit behind AI advertising and SEO/GEO in future rankings. Traditional banner and display formats, by contrast, are expected to contract further and become increasingly marginal.
The report places this shift within a broader market that is also being reshaped by retail media, influencer marketing, digital audio and the digital transformation of video and digital out-of-home. The BVDW’s retail media trendmonitor, published separately, says retail media has become a fixed part of the market and that discussion is now moving towards effectiveness, data transparency and technical compatibility. The eBusiness report on the 2026 trendmonitor adds that the industry is increasingly focused on AI-driven optimisation, generative engine optimisation and privacy-compliant identification solutions, with connected TV and streaming inventory now part of the wider growth picture. Taken together, the findings suggest that agencies are being pushed towards more integrated planning across channels rather than isolated campaign buying.
That strategic shift is also changing the expectations placed on agencies. The study says AI competence is now treated as a basic requirement rather than a differentiator. The real market advantage is moving towards creativity, measurable business impact and stronger advisory capacity. The BVDW says 92% of respondents see the agency’s role as a strategic sparring partner becoming far more important. At the same time, the labour market challenge is changing: the issue is no longer simply recruitment, but training, culture, critical thinking and change management. The report points to emerging roles such as AI media specialists, data scientists, creative technologists and customer intelligence managers as examples of where specialist capability is heading.
The industry’s concerns are not limited to technology. A large majority of agencies, 92%, say politics and society still do not properly recognise advertising as a financial basis for free media. Another 82% warn about the growing power of a small number of dominant media owners, especially large international platforms operating as closed ecosystems. The BVDW says only 35% of respondents believe artificial intelligence will materially alter those power structures. For that reason, the report suggests that alliances across the sector, co-operation between companies and local market initiatives may become more important as a counterweight to concentration.
Disclaimer: This content is intended for informational purposes only. Readers are advised to exercise their own judgement, conduct due diligence, or consult a qualified expert before acting on any information provided.
