VAUNET German Advertising Market Forecast 2019
Advertisers Investing More Than Ever Before in Audiovisual Media
Revenue performance 2018-2019: Market share gains for radio and TV advertising, strong growth in the segments of in-stream video and in-stream audio advertising
Berlin, 22 May 2019 The German Media Association VAUNET has today published its spring forecast for advertising market trends in the radio and audio sectors during 2019, as well as for TV and video advertising. In the case of audio and audiovisual media, VAUNET is expecting a 40-percent share of the advertising market (2018: 37.8 percent) to be secured during the current year, with revenue reaching 6.13 billion euros (2018: 5.97 bn euros). This represents revenue growth of approx. 2.6 percent (2018: 1.5 percent), exceeding 6 billion euros for the first time.
Hans Demmel, Chairman of VAUNET’s Managing Board: "We foresee a positive overall development for advertising in the audiovisual media sector. Media companies do however have to compete to an increasing extent with international platforms, which means that the creation of a convergent legal framework and fair competitive conditions is existential for this sector. This is the only way to secure the major economic significance of audiovisual media in the future, from which many other industries benefit."
Frank Giersberg, Member of VAUNET´s Board of Directors: "Advertising clients are investing more than ever before in audio and audiovisual advertising. In doing so, they are orientating towards rising usage and high advertising impact. As a result, radio and TV advertising are gaining additional market shares, while in-stream audio and video advertising are recording strong growth. Especially in the streaming sector, domestic providers are however facing increasingly stronger unfair competition from large global platforms."
According to VAUNET´s forecast for 2019, net advertising revenue in the TV and video sectors is expected to rise by approx. 2.4 percent in Germany (2018: +1.3 percent) to reach 5.26 billion euros (2018: 5.137 bn euros). During 2019, it is estimated that an additional 123 million euros (2018: +66 mill. euros) will once again be invested in TV and video advertising. The net advertising revenue generated by television is expected to remain stable at approx. 4.540 billion euros (2018: 4.537 bn euros), equivalent to +/- 0 percent (2018: -1.2 percent). In the case of net advertising revenue from in-stream video advertising, the Association is anticipating ongoing double-digit growth of some 20 percent (2018: +25.0 percent) up to around 0.72 billion euros (2018: 0.60 bn euros). The total share of the advertising market held by TV and video advertising is expected to reach around 34 percent in 2019 (2018: 33 percent).
Net advertising revenue in the audio sector is forecast to rise by approx. 3.7 percent in 2019 (2018: +2.6 percent) to 865 million euros (2018: 834 mill. euros). As a result, an additional amount of some 31 million euros (2018: +21 mill. euros) is expected to be invested in radio and audio advertising. The Association anticipates a rise in net radio advertising revenue of approx. 2 percent (2018: +0.6 percent) to over 805 million euros in 2019 (2018: 789 mill euros). Based on a comparatively low initial figure, the Association is forecasting an approximately 35 percent rise (2018: +55.2 percent) in net advertising revenue in the in-stream audio advertising segment during 2019 to reach 60 million euros (2018: 45 mill. euros). In the case of radio and audio advertising, VAUNET´s spring forecast for 2019 envisages an approximately 6-percent share (2018: 5.3 percent) of the advertising market.
Today´s figures published by VAUNET supplement Germany´s official advertising statistics issued by the ZAW which are based, among other things, on the revenue reports compiled each year by VAUNET. VAUNET´s Advertising Market Forecast for Germany 2019 is based on surveys conducted among relevant companies and expert interviews. The advertising market shares quoted relate to the net advertising revenue generated by assessable advertising media based on the ZAW advertising statistics.
Tables relating to the VAUNET Advertising Market Forecast for Germany, Spring 2019