VPRT Forecast for the German Media Market in 2014 – sustained growth for TV and radio
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Television advertising: revenue up 2.7 percent to 4.2bn euros
Radio advertising: revenue up 1.1 percent to 750m euros
Teleshopping: revenue up 4 percent to 1.8bn euros
Pay-TV: up by 12 percent, paid VoD: up by 18 percent with a total revenue of 2.3bn euros
In the run up to the Medientage München, the Association of Commercial Broad-casters and Audiovisual Services in Germany (VPRT) has published this year´s fore-cast for the German market during the year 2014. This indicates ongoing growth across all sectors of electronic media, which are continuing their sustained growth of previous years.
In the field of television advertising, net growth of approx. 2.7 percent up to 4.2 billion euros is expected. This means that, in terms of revenue, television remains by far the strongest performer in the German advertising market, stepping up its growth rate yet again in 2014 compared with the previous year (2013: +2.2 per-cent). In the segment of online video advertising integrated into streaming (in-stream video advertising), VPRT is forecasting a rise of approx. 22 percent to 244 million euros. Total revenue from video ads (both linear and non-linear) is ex-pected to increase by about 3.6 percent.
For radio advertising, VPRT is forecasting a net rise in revenue of around 1.1 per-cent compared with 2013, up to 750 million euros (2013: +3.7 percent). In the in-stream audio advertising sector, VPRT anticipates growth of 30 percent to approx. 10 million euros. As a result, total revenues from audio advertising (linear and non-linear) are expected to give rise to an increase in net turnover of around 1.3 per-cent.
According to VPRT´s forecast for 2014, net advertising revenue in the online/mobile display sector should grow by 6 percent, topping 1.2 billion euros. Teleshopping is expected to report a rise of approx. 4 percent, reaching 1.8 billion euros.
By year-end, growth of approx. 12 percent is forecast for pay-TV and approx. 18 percent for the paid video-on-demand market. This increase in the pay-TV and paid VoD market will result in overall annual revenue of some 2.3 billion euros.
Claus Grewenig, Managing Director of VPRT said: “Video and radio offerings via all channels are some of the most important pillars of our creative industries. Adver-tising continues to be the major refinancing factor. It is essential to have certainty in planning, not only for the media, but for the entire economy. Product-related advertising bans in the case of legal products, as occasionally raised in current polit-ical discussions, must therefore be rejected.”
Frank Giersberg, Head of Market Development at VPRT said: “The revenue gener-ated by audiovisual media is growing across all types of offerings and all business models. The largest percentage growth is found in the sector of audio and video streaming, while the highest increases in absolute terms are recorded by linear of-ferings. This means that linear TV and radio offerings remain the segments with by far the highest revenues.”
For the years 2015 to 2020, the experts questioned in connection with the VPRT forecast anticipate an ongoing boom across all platforms in the audio and video sectors, progressive fragmentation, additional market entries, intense competition and high pressure to innovate.
|Net Revenue Performance Forecast 2014*|
Change compared with 2013 in %
|Radio advertising||approx. + 1.1 percent|
|In-stream audio advertising||approx. + 30 percent|
|Television advertising||approx. + 2.7 percent|
|In-stream video advertising||approx. + 22.0 percent|
|Online display advertising||approx. + 4.4 percent|
|Mobile display advertising||approx. + 48.0 percent|
|Teleshopping||approx. + 4.0 percent|
|Pay-TV||approx. + 12.0 percent|
|Paid video-on-demand||approx. + 18.0 percent|
|Paid audio||approx. + 8.0 percent|
* Figures forecast for the entire German market for the whole of 2014
Source: VPRT (basis: Expert Survey, status: October 2014)
Published on a yearly basis, the VPRT market forecast is based on a management survey held throughout German media enterprises. This year´s forecast was based on an analysis of feedback received from 55 companies during the survey period which lasted from 15 September to 17 October 2014.
The latest data on market developments in the media sector can be downloaded at www.vprt.de/thema/marktentwicklung/marktdaten (German language)
Frank Giersberg, Head of Market Development
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Press Spokesman Hartmut Schultz, Hartmut Schultz Kommunikation GmbH
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VPRT represents commercial broadcasting and audiovisual companies in Germany. With their TV, radio, online and mobile offerings, its approximately 140 members enhance Germany´s media landscape in terms of diversity, creativity and innova-tion. To ensure that things remain this way even in the digital world, the regulato-ry, technological and economic parameters must be right. As a trade association, we support our companies in their dialogue with politicians and market partners in order to achieve this goal – at both a national and EU level.