Vaunet (German Media Association) anticipates a 6.1 per cent increase in total advertising revenue in Germany’s audio and audiovisual media, up from €5.89 billion to €6.25 billion, after a 4 per cent decline in 2023. Vaunet presented these figures in its annual spring forecast for the development of the audio and audiovisual advertising segments, which was published in connection with the annual conference of the ZAW German Advertising Federation. The advertising market for audio and audiovisual media has experienced significant volatility since the onset of the coronavirus crisis four years ago. Net advertising revenue, which declined at the pandemic’s start in 2020, rebounded to slightly above pre-crisis levels in 2021. However, it then weakened slightly in 2022 following the start of the war in Ukraine, before decreasing again in 2023 amid widespread economic challenges, dropping 4 per cent from €6.13 billion to €5.89 billion.
Claus Grewenig, Chairman of the Board at Vaunet referred to the market volatility: “Volatile trends of revenue from audio and audiovisual advertising in recent years show the influence of various external factors on the advertising market – a market that forms the core foundation for financing commercial media services. In these politically uncertain times rife with disinformation, commercial media serve as reliable information sources and play a crucial role in protecting democracy. They therefore require particular attention from all areas of politics that have a direct and indirect impact on their financing," explained.
On his part, Frank Giersberg, Managing Director at Vaunet spoke about the importance of streaming services: “Radio, television and streaming services are reaching the majority of the population in Germany every day. At the same time, high reach not only gives audio and audiovisual media a particular social relevance, but it also results in high significance for the advertising industry. Since the start of commercial broadcasting in Germany, the audiovisual media industry has developed into an important economic driver over the last forty years. To maintain this, it’s crucial to secure fair competitive conditions for audio and audiovisual media companies towards public broadcasters and global tech giants," commented.
Vaunet ´s spring forecast projects that audiovisual advertising revenue in Germany in 2024 will increase by €331 million, or 6.5 per cent, reaching €5.42 billion. Of this amount, television advertising is expected to contribute €3.74 billion, marking a 2.4 per cent rise, while audiovisual streaming is projected to generate around €1.68 billion, reflecting an impressive 17 per cent increase. In 2023, the TV advertising segment saw revenue drop 9.2 per cent to €3.65 billion (2022: €4.02 billion), whereas advertising revenue in the video streaming segment rose by 10.1 per cent to €1.43 billion (2022: €1.30 billion). Overall, revenue from audiovisual advertising in 2023 fell by 4.5 per cent to €5.08 billion (2022: €5.32 billion).
On the other hand, Vaunet forecasts a 3.3 per cent increase in audio service advertising revenue in Germany for 2024, rising by €27 million to reach €834 million. For radio advertising, Vaunet expects revenue growth of around 2 per cent to €713 million and an increase of 12 per cent to €120 million for advertising in audio streaming. In 2023, net advertising revenue in radio fell slightly by 2.5 per cent to €699 million (2022: €717 million). By contrast, the audio streaming advertising segment noted an increase in revenue of 11.2 per cent to €107 million (2022: €97 million). Overall, revenue in audio advertising was down by 0.8 per cent to €807 million in 2023 (2022: €814 million).
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