TV is the medium with the highest reach in Germany. Therefore, the advertising industry has the greatest relevance in comparison to other media. In 2017, 47.9% of gross advertising investment went on TV advertising (previous year: 48.2%) (Fig. 070). This figure was at 50.9% in the fourth quarter (previous year: 50.6%).
070 / Media Mix German Gross Advertising Market in %, 2016 figures in parentheses
Source: Nielsen Media Research.
According to Nielsen Media Research, gross TV advertising investment rose by 1.4% to EUR 15.308 billion (previous year: EUR 15.091 billion). With EUR 5.169 billion (previous year: EUR 4.983 billion), a large portion of the investment was made in the fourth quarter, which is usually characterized by the highest market volume. In 2017, gross market growth was especially attributable to higher advertising investment in the commerce (+11.0%), health and pharmaceuticals (+8.9%) and services (+5.6%) sectors. Economic Development, Impact of General Conditions on the Business Performance
Official data on the net TV advertising market for 2017 will be published by the German Advertising Federation (Zentralverband der deutschen Werbewirtschaft — ZAW) in May 2018. Agency forecasts for 2017 currently differ: While ZenithOptimedia expects the net TV advertising market to decline by minus 0.8% in 2017, Magna Global and WARC forecast growth of plus 1.5% and plus 2.8%, respectively. In ProSiebenSat.1’s view, the net TV advertising market developed almost on the previous year’s level. This was due to sector-specific effects, whose duration and impact cannot yet be conclusively assessed. For example, various important industries for the TV advertising market were subject of increasing consolidation and rising cost pressure in 2017. The internalization of Parship and ElitePartner also made an impact. The dating sites have been part of ProSiebenSat.1 Group since fall 2016; as a result of the acquisition, the TV adverting revenues of PARSHIP ELITE Group, previously recognized as external revenues, are now recognized as internal revenues. Future Business and Industry Environment
According to Nielsen Media Research, ProSiebenSat.1 is the market leader in the German TV advertising market and generated gross TV advertising revenues of EUR 6.381 billion in 2017 (previous year: EUR 6.447 billion). In the fourth quarter of 2017, revenues increased by 5.8% to EUR 2.210 billion (previous year: EUR 2.089 billion). For the full year of 2017, this resulted in a market share of 41.7%; in the fourth quarter, ProSiebenSat.1 achieved a market share of 42.7% (same periods of the previous year: 42.7% and 41.9% respectively) (Fig. 071) (Fig. 072). The decline in market share compared to the full year of 2016 is partly attributable to the entry of new market participants, which has led to a certain fragmentation. Development of Audience Shares
071 / Market Shares German Gross TV Advertising Market in %, 2016 figures in parentheses
Source: Nielsen Media Research.
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Development of the |
Development of the |
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Germany |
+3.7 |
+1.4 |
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Austria |
+6.8 |
+5.6 |
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Switzerland |
+11.6 |
+6.2 |
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Market shares |
Market shares |
Market shares |
Market shares |
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Germany |
42.7 |
41.9 |
41.7 |
42.7 |
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Austria |
41.0 |
36.4 |
40.5 |
36.6 |
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Switzerland |
27.8 |
26.6 |
28.2 |
26.9 |
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The advertising budgets for in-stream video ads in Germany continue to develop dynamically: The gross market volume increased by 15.9% to EUR 692.4 million in 2017 (previous year: EUR 597.6 million), and by 25.9% to EUR 243.4 million in the fourth quarter (previous year: EUR 193.4 million). These are a form of Internet video advertising shown before, after or during a video stream. By selling them, ProSiebenSat.1 Group generated gross revenues of EUR 323.6 million in the full year of 2017 (previous year: EUR 258.3 million). This corresponds to a year-on-year increase of 25.3% and a leading market share of 46.7% (previous year: 43.2%) (Fig. 073). In the fourth quarter, the Group generated EUR 123.9 million (previous year: EUR 90.2 million) from the sale of in-stream video ads; this results in an advertising market share of 50.9% (previous year: 46.6%). Overall, investments in online forms of advertising rose by 6.7% to EUR 3.656 billion in 2017 (previous year: EUR 3.427 billion). In the fourth quarter, they amounted to EUR 1.201 billion (previous year: EUR 1.051 billion). In addition to in-stream videos, the online advertising market also includes display ads such as traditional banners and buttons.
073 / Market Shares German Gross Online Advertising Market for In-stream Video Ads in %, 2016 figures in parentheses
Source: Nielsen Media Research.
Advertising market data from Nielsen Media Research are important indicators for an objective assessment of the advertising market’s development. However, gross data allow only limited conclusions to be drawn about actual advertising revenues as they do not take into account discounts, self-promotion or agency commission. In addition, the figures for TV also include spots from media-for-revenue-share and media-for-equity transactions. Furthermore, major digital players from the US are not reflected in the Nielsen figures.
Nielsen Media Research designates gross figures for the online advertising market in Germany excluding, among others, Google/Youtube, Facebook.