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

Media Mix German Gross Advertising Market (Pie chart)

Source: Nielsen Media Research.

According to , 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 ( — 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

Market Shares German Gross TV Advertising Market (Pie chart)

Source: Nielsen Media Research.

072 / TV advertising markets in Germany, Austria and Switzerland on a gross basis in %

 

Development of the
TV advertising market
in Q4 2017
(Change against previous year)

Development of the
TV advertising market
in 2017
(Change against previous year)

Germany: January – December, gross, Nielsen Media.

Austria: January – December, gross, Media Focus.

Switzerland: January – December, the market shares relate to the German-speaking part of Switzerland, gross, Media Focus.

Germany

+3.7

+1.4

Austria

+6.8

+5.6

Switzerland

+11.6

+6.2

 

 

 

 

 

 

 

 

 

 

 

Market shares
ProSiebenSat.1
Q4 2017

Market shares
ProSiebenSat.1
Q4 2016

Market shares
ProSiebenSat.1
2017

Market shares
ProSiebenSat.1
2016

Germany

42.7

41.9

41.7

42.7

Austria

41.0

36.4

40.5

36.6

Switzerland

27.8

26.6

28.2

26.9

The advertising budgets for 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

Market Shares German Gross Online Advertising Market for In-stream Video Ads (Pie chart)

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 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.

Nielsen Media Research
Subsidiary of the American market research institute AC Nielsen. Nielsen Media Research, based in Hamburg, is devoted to monitoring the advertising market. It determines the gross advertising revenues (AdEx data) of the most important media types and advertising media (television, consumer and trade magazines, newspapers, radio, online and billboards) according to economic field, product group and family, company and brand.
Glossary
Zentralverband der deutschen Werbewirtschaft (ZAW)
As a combination of associations whose members are business advertisers, the Zentralverband der deutschen Werbewirtschaft e. V. (ZAW) brings together the interests of the advertising industry, represents them to the outside world and determines the advertising investments (net) of all media types and advertising media on an annual basis. The association is dedicated to all matters concerning the advertising industry with the intention of making government regulation unnecessary.
Glossary
In-stream video ads
In-stream advertising is video advertising. This includes all forms of video advertising shown before, after or during a video stream. Linear in-stream video ads play — like TV commercials— before (pre-roll), during (mid-roll) or after (post-roll) the video content. They can also allow interaction (interactive video ads). Another category is non-linear video ads, which play in parallel and overlap with the video content.
Glossary
Media-for-revenue-share / media-for-equity
Describes a business model introduced by ProSiebenSat.1 Group where start-up companies receive advertisement time in return for a revenue share and/or equity.
Glossary