The German advertising market will remain stagnant until next year, according to a survey by accountancy firm KPMG of 129 managers from the fields of film, broadcasting and publishing.

The study found that almost half (48%) of the managers were not expecting an upturn in the advertising sector until 2004 and just over half (52%) forecast growth of a maximum 3% for both 2003 and next year.

53% of the managers from film and broadcasting expected the competition in their fields to become tougher and saw a greater trend towards concentration than their colleagues in publishing.

Meanwhile, half of the film companies - and 60% of new media managers - felt that their growth would be negatively affected by the more stringent credit requirements from banks with the Basel II regulations

Consequently, as the study explained, "innovative forms of financing to finance further growth or acquisitions will in future play an increasing role. A third of the managers interviewed had already dealt intensively with this form of financing and mezzanine capital represents an alternative for 41%."