Out of Home Advertising crosses the threshold of 2 billion euros in Germany

The German Association for Out of Home Advertising, Fachverband Aussenwerbung e.V. (FAW) announces that Out of Home media has continued their winning streak in 2017: For the first time, gross advertising sales exceeded 2 billion euros in a highly dynamic growth environment which drove their market share up to 7%.

With 16 years of continuous solid growth, Out of Home (OOH) advertising underlined its exceptional position amongst the conventional media in Germany. Since 2001, sales have continuously moved higher and continued this upward trend in 2017 too: gross advertising sales crossed the threshold of 2 billion euros reaching a historic high. With a solid growth of 7% compared to 2016, Out of Home proved to be, once more, a medium with a strong growth trend which by far exceeds the overall market average of just below 2% and is now heading clearly towards a market share of 7%.
“The fact that Out of Home advertising once again achieved an outstanding result confirms our assessment of the past few years: the growth in the Out of Home advertising segment is not a ‘hype’, but a durable trend in the media segment”, explains Jochen C. Gutzeit, Managing Director for Germany’s Association for Out of Home Advertising (FAW). “We observe a continuing budget shift towards media which our advertising clients expect to gain relevance in reaching out to consumers on their Customer Journey. With changes of lifestyle and use of media, the population’s focus has shifted more towards the public space, thus, increasing the significance of media located there.”

Data from a long-term analysis confirm this trend. In a consistently hard competition between media, Out of Home advertising has increased its market share from 3.7% to 6.7% in the last ten years and is one of the few winners in the media market. Over this period, gross sales in the OOH segment have increased by 172%, while sales in the entire media market merely increased by 53%.

Jochen Gutzeit, Managing Director of the FAW: “Out of Home advertising has been a highly dynamic segment in this market for quite some time now. We are convinced that this development will continue over the next years. The key elements, which support our medium, are high reach performance on the one hand and precise target group orientation on the other. What is more, there are attractive convergence opportunities, especially with ‘mobile’ and the rapidly growing digitisation. All of these factors make Out of Home advertising an attractive tool for almost all advertising clients.”

Outperform: Out of Home crosses threshold of 2 billion euros

 

Development of gross advertising sales in traditional media 2017

 

Media

2017

2016

2017/2016

2017/2016

 

(€ 1,000)

(€ 1,000)

(€ 1,000)

(%)

TV

15,307,574

15,090,681

216,893

1.4

Print

8,703,074

8,805,918

-102,844

-1.2

Online

3,655,973

3,400,922

255,051

7.5

Out of Home

2,124,689

1,985,226

139,463

7.0

Radio

1,916,672

1,831,350

85,322

4.7

Cinema

159,900

148,387

11,513

7.8

Total

31,867,880

31,262,483

605,397

1.9

Based on: Gross advertising expenditures based on Nielsen Werbestatistik (Advertising Statistics)

Source: Nielsen Company/Fachverband Aussenwerbung e.V., 15th January 2018

 

 

Outperform: growing significance of Out of Home advertising media

Development of the market share by media type since 2007

 

2017 (%)

2012 (%)

2007 (%)

TV

48.0

43.3

41.9

Print

27.3

34.4

48.2

Online

11.5

11.1

n.e.

Out of Home

6.7

4.9

3.7

Radio

6.0

5.9

6.2

Cinema

0.5

0.4

Not recorded

Based on: Gross advertising expenditures based on Nielsen Werbestatistik  (Advertising Statistics)

 

Source: Nielsen Company / Fachverband Aussenwerbung e.V., 15th January 2018

 

Outperform: Long-term growth trend in Out of Home advertising

Development of media sales on a 5 and 10 year basis

 

 

Total market

Out-of- home

TV

Online

Growth 2017/2012 (in %)

21.8

66.0

35.0

26,4

Growth 2017/2007 (in %)

52.7

172.4

75.3

(not registered)

Based on: Gross advertising expenditures based on Nielsen Werbestatistik (Advertising Statistics)

Source: Nielsen Company / Fachverband Aussenwerbung e.V., 15th January 2018