European broadcasters must collaborate to level the digital advertising playing field

January 18, 2019  | Subscribers Only

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Across Western Europe, advertising revenue continues a gradual shift toward digital avenues at the expense of TV. IHS Markit estimates that across the five biggest markets, namely UK, France, Germany, Italy and Spain, ad revenue in traditional TV grew 9% between 2014 and 2018 to €18.4bn. In contrast, online video ad revenue grew 187% in the same period to reach €3.4bn. Despite the growth of online video ad revenues, however, European broadcasters are struggling to sustain their share of ad revenue in online video thanks to the digital duopoly, Facebook and Google. To address this, broadcasters have revised their strategies and alliances have become more commonplace.

Highlights:

  • IHS Markit estimates that online video ad revenue across the EU Big Five soared 187% between 2014 and 2018, while traditional TV ad revenue rose just 9%
  • Facebook and Google captured 65% of online video ad revenue across the Big Five in 2018, other ad-funded online video platforms held 10%, leaving broadcasters with a 25% share
  • Broadcaster share of online video ad revenue is forecast to fall to 22% by 2023 as the duopoly’s influence grows
  • Collaboration between commercial and free to-air broadcasters has buoyed France’s share of broadcaster online ad revenue, with TF1 leapfrogging ITV to become the sector leader in 2018
  • Cohesive advertising video on-demand (AVoD) platforms may offer European broadcasters the best chance to regain ad market share from the digital duopoly by aggregating content and distribution rights

List of tables and charts:

  • The State of TV & online video advertising revenues across the EU Big 5
  • European broadcaster alliances and acquisitions ramping up
  • European broadcaster AVoD revenues (€m)
  • Broadcaster AVoD by country (€m)

Number of Pages: 8

Number of Tables and Charts: 4

Ryan Doherty

Research Analyst, Advertising, IHS Markit

Ryan Doherty is a research analyst for global advertising and media at IHS Markit, based in London.

Kia Ling Teoh

Senior Research Analyst – Advertising & Television Media, IHS Markit

Ms. Kia Ling Teoh is a senior research analyst, Advertising & Television Media at IHS Markit.

Research by Market
Media & Advertising
Category
Advertising
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