Telekom and Vodafone Spend Up as P&G Cuts Back
Germany's biggest advertisers are splitting into two camps: telecoms giants Telekom and Vodafone are raising the advertising pressure while consumer-goods leader Procter & Gamble reins its spending in — a divergence that says a lot about who plans to win share.
The split at the top
Fresh ranking data on Germany's top 20 advertisers shows a clear divergence. Telecoms players including Telekom and Vodafone are increasing their advertising pressure, while Procter & Gamble — one of the world's most disciplined marketers — is pulling back.
When two heavyweight categories move in opposite directions, it is usually a sign of different strategic reads on the same uncertain market.
Why the divergence matters
This is playing out against a German ad market that has only inched up, with linear TV sliding while online surged around 17% in a recent monthly reading. In a flat-to-soft market, every euro of extra spend is a bid for share of voice while rivals hesitate.
Our read at Marketing Minute: downturns and soft markets are historically when brave brands gain ground cheaply, because share of voice is easier to buy when others retreat. Telekom and Vodafone leaning in — and P&G leaning out — is a live experiment in that principle.
What marketers should take
The evidence from decades of research is consistent: brands that maintain or grow share of voice in a downturn tend to emerge stronger, while those that cut deepest often cede ground they later pay dearly to recover.
The practical question for any marketer is not simply 'can we cut?' but 'what will it cost us to be quiet while competitors are loud?' Sometimes the most expensive saving is silence.
Quick FAQ
What does the top-20 advertiser data show?
Telecoms brands including Telekom and Vodafone are increasing ad pressure, while Procter & Gamble is cutting back.
Why does the divergence matter?
In a flat German market — where online recently surged around 17% as TV slid — extra spend is a bid for share of voice while rivals hesitate.
What's the takeaway for marketers?
Brands that hold share of voice in soft markets tend to emerge stronger; the most expensive saving can be silence.
When one big category spends up and another pulls back in the same soft market, you're watching two different bets on share of voice. History favours the brave: downturns are when the loud brands buy ground cheaply from the quiet ones. Sometimes the most expensive saving a marketer can make is silence. — Daniel Nikolla, Founder of Merx Marketing
In a soft market, share of voice is cheap to buy and costly to lose — silence is often the priciest saving.
If your competitors go quiet, will you have the nerve — and the budget — to get louder?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Source: HORIZONT.
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
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