Market Insights Advertising & Media Media TV & Video OTT Video

OTT Video Advertising - Germany

Germany

In Germany, ad spending in the OTT Video Advertising market market is projected to reach US$1.61bn in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.37%, which will lead to a projected market volume of US$1.90bn by 2029.
Although the majority of revenue in the OTT Video Advertising market market will be generated the United States, in Germany is also expected to contribute significantly.
By 2029, a certain percentage of total ad spending in Germany's OTT Video Advertising market market will be generated through mobile platforms.
The average ad spending per internet user in Germany within the OTT Video Advertising market market is projected to amount to US$23.46 in 2024.
Germany's OTT video advertising market is witnessing a significant shift towards personalized content, as brands increasingly prioritize targeted strategies to engage viewers effectively.

Key regions: South Korea, Japan, France, Germany, United States

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Analyst Opinion

The OTT Video Advertising market in Germany has been experiencing significant growth in recent years.

Customer preferences: German consumers have shown a growing preference for online video content, with an increasing number of people turning to OTT platforms for their entertainment needs. This shift in consumer behavior is driven by several factors, including the convenience and flexibility of accessing content anytime and anywhere, as well as the wide variety of content options available on these platforms. Additionally, the rise of smart TVs and mobile devices has made it even easier for consumers to stream video content, further fueling the demand for OTT services.

Trends in the market: One of the key trends in the OTT Video Advertising market in Germany is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences based on their demographics, interests, and viewing habits, thereby maximizing the effectiveness of their campaigns. This trend is driven by the growing availability of data and analytics tools, which enable advertisers to better understand their target audience and deliver more personalized and relevant ads. Another trend in the market is the rise of native advertising. Native ads seamlessly integrate into the user experience, appearing as part of the content rather than as separate advertisements. This form of advertising is particularly effective in the OTT Video Advertising market, as it allows advertisers to engage viewers without disrupting their viewing experience. Native ads also have higher engagement rates compared to traditional display ads, making them an attractive option for advertisers looking to maximize the impact of their campaigns.

Local special circumstances: Germany has a strong regulatory framework when it comes to advertising, which has had an impact on the OTT Video Advertising market. For example, there are strict rules regarding the placement and content of advertisements, with a focus on protecting consumers from misleading or harmful advertising. Advertisers in Germany need to be mindful of these regulations and ensure that their campaigns comply with the local advertising standards.

Underlying macroeconomic factors: The growth of the OTT Video Advertising market in Germany is also influenced by underlying macroeconomic factors. The German economy has been relatively stable in recent years, with a high level of disposable income among consumers. This has created a favorable environment for advertisers, as consumers have more spending power to invest in OTT subscriptions and engage with video content. Additionally, the strong presence of global OTT platforms in the German market has contributed to the growth of the advertising industry, as these platforms bring in international advertisers and content providers. In conclusion, the OTT Video Advertising market in Germany is experiencing significant growth, driven by changing consumer preferences, the adoption of programmatic and native advertising, local advertising regulations, and underlying macroeconomic factors. Advertisers in Germany need to adapt to these trends and leverage the opportunities presented by the growing OTT Video Advertising market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on OTT video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Subsegment size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the segment. 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.