Audio and audiovisual media see moderate ad revenue growth in 2023 in Germany

VAUNET (German Media Association) expects advertising revenue in the audio and audiovisual media in Germany in 2023 to rise moderately by about 1.2 per cent to a total of €6.21 billion. This comes after a minor drop in advertising sales across audiovisual and audio advertising segments of 2.3 per cent in 2022 to €6.13 billion.

However, the landscape varies across individual categories. For instance, radio advertising revenue in 2023 is expected to see an uptick of roughly 2 per cent, bringing it up to €730 million. On the other hand, television advertising is slated to witness a slump of 3.7 per cent, declining to €3.87 billion. This means that the two major segments are set to continue their trends observed in 2022, when TV advertising sales saw a 7.4 per cent dip while radio advertising sales increased by 1.5 per cent. This marked a reversal from 2021, when TV advertising rebounded after the initial year of pandemic-induced decline, and radio advertising slightly dipped. Nevertheless, both segments are expected to linger below pre-Covid levels compared to 2019.

The silver lining comes from streaming providers, which have consistently shown positive growth with double-digit rates. This growth trajectory is likely to be sustained. These figures on the advertising market were released today by VAUNET in its annual spring forecast for the development of the audio and audiovisual advertising segments in Germany in 2023, which was published in connection with the annual Advertising Plenum conference hosted by the ZAW German Advertising Federation.

Claus Grewenig, Chairman of the Board at VAUNET: “Advertising revenues continue to fluctuate amidst external crisis factors, presenting challenging economic impacts for media companies. In light of this volatility, it’s crucial to avoid sweeping and disproportionate disruption to our foundational financing mechanisms. The recent call from the Minister of Food and Agriculture for a blanket ban on food advertising starkly underlines the risks of political action when its repercussions for commercial media are ignored. Unfounded, wide-ranging advertising prohibitions could have dire consequences if implemented without rigorous evidence and balanced consideration of interests.”

Frank Giersberg, Managing Director at VAUNET: “Advertising stands as the bedrock of media diversity in Germany. Despite a challenging market climate marked by years of crisis, audio and audiovisual media will underscore their significant value to the advertising sector in 2022 and 2023. Instream audio and video advertising continues to be a key catalyst for growth, even if it is still at a significantly lower level than traditional radio and TV advertising.”