Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Germany

Germany

Ad spending in the Traditional TV Advertising market in Germany is forecasted to reach US$4.46bn in 2024.
The market is expected to experience a Compound Annual Growth Rate (CAGR 2024-2029) of 0.44%, leading to a projected market size of US$4.46bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Germany is estimated to be US$64.57 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Germany is anticipated to reach 69.8m users.
Germany's Traditional TV Advertising market is experiencing a shift towards digital platforms to reach tech-savvy audiences, reflecting changing consumer preferences.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Germany has been experiencing significant changes and developments in recent years.

Customer preferences: German consumers still have a strong preference for traditional TV advertising, despite the rise of digital platforms and streaming services. This can be attributed to the fact that television remains the primary source of entertainment for many households in Germany. Additionally, traditional TV advertising offers a wide reach and allows advertisers to target specific demographics effectively.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Germany is the shift towards programmatic advertising. Programmatic advertising enables advertisers to automate the buying and selling of TV ad inventory, making the process more efficient and cost-effective. This trend is driven by the increasing availability of data and advanced targeting capabilities, allowing advertisers to reach their desired audience more precisely. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are increasingly incorporating interactive features, such as QR codes and social media hashtags, into their TV ads to engage viewers and drive online interactions. This trend is driven by the growing use of second screens while watching TV, as viewers often use their smartphones or tablets to browse the internet or interact with social media during commercial breaks.

Local special circumstances: Germany has a unique advertising landscape due to strict regulations on TV advertising. For example, there are limits on the amount of advertising that can be shown during certain time slots, such as prime time. This regulation aims to protect viewers from excessive advertising and maintain the quality of programming. Advertisers in Germany need to carefully plan their TV ad campaigns to comply with these regulations and ensure maximum exposure to their target audience.

Underlying macroeconomic factors: The Traditional TV Advertising market in Germany is influenced by various macroeconomic factors. The overall economic growth and consumer spending play a significant role in determining the advertising budgets of companies. When the economy is thriving, companies are more willing to invest in TV advertising to promote their products and services. On the other hand, during economic downturns, companies may reduce their advertising budgets, leading to a decline in TV ad spending. Additionally, changes in consumer behavior, such as the increasing popularity of streaming services, can also impact the demand for traditional TV advertising.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.