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13.09.17, 18:00h

SpotX reveals research into connected TV advertising in Germany

HAMBURG -- 13 September, 2017 - SpotX, the video ad serving platform, today unveils research into the connected TV advertising ecosystem in Europe. Conducted by research and strategy consulting firm MTM, the research and white paper analyses the trends, enablers and barriers affecting connected TV advertising spend in each of the big five markets.

Compiled from roundtable meetings and interviews with experts in each country, the white paper reveals that Germany is one of the largest markets in Europe with an emerging connected TV advertising ecosystem delivering ¤50 million of advertising viewed on a TV connected to the open internet via streaming devices, smart TVs, games consoles and set-top boxes in 2016. As the OTT advertising landscape grows across Europe the connected television advertising portion of that in Germany is expected to grow to ¤125m in 2020.

Fixed broadband penetration is high in Germany at 79 per cent, with 89 per cent of these connections offering speeds of over 4 Mbps delivering a good quality experience for viewers of TV delivered over the internet. Currently, half of all German households own a connected TV set but not all of them are connected to the internet and awareness of OTT services is low. However, there is increasing demand from advertisers and experts expect broadcasters to increase awareness of their services and connected TV advertising revenues are expected to grow at a CAGR of 24 per cent.

Commenting on the findings Stefan Beckmann, Managing Director for SpotX DACH explains, "There has been a lot of innovation in the connected TV ecosystem in Germany, as well as the wider OTT environment. We are seeing increasing demand from advertisers buying advertising on the TV screen ad-served, targeted and measured using digital techniques, with some agencies creating new teams to focus on the opportunity."

Nick Thomas, Associate Director at MTM, adds, 'Although half of German households have a TV that can be connected to the internet, many of them are not connected and awareness of ad-funded connected TV services is low. With investment from broadcasters we expect this to grow as German viewers love watching television, especially free-to-air television! Experts agreed that this offers an opportunity for advertisers and broadcasters as SVOD services and internet companies are unlikely to be as successful in Germany as they have been in other countries."

Beckmann concludes, "There is widespread agreement that connected TV is a new class of TV inventory, combining the established value of big-screen engagement with the application of advanced advertising capabilities to measure and target audiences. We have witnessed growth around the world but the market statistics have not been available until now. We expect the new connected TV ecosystem to grow fast harnessing innovation, creativity and digital techniques to deliver results for viewers, broadcasters and media buyers."

The white paper, The Connected TV Opportunity in Europe, available from SpotX https://www.spotx.tv/resources/downloads/white-paper-the-connected-tv-advertising-opportunity-in-europe analyses market enablers and barriers to advertising revenue growth are detailed for each country in the survey. The research predicts rapid growth for connected TV advertising on the open internet via streaming devices, smart TVs, games consoles and set-top boxes, supported by improving broadband penetration and speeds. Germany was revealed as the second largest market for connected TV advertising, behind the UK, but growing faster, and ahead of France.

About SpotX
SpotX is a video ad serving platform providing media owners with monetization tools for desktop, mobile and connected devices. The platform features modern ad serving and programmatic infrastructure, and other monetization tools, like solutions for OTT and outstream video ad units. SpotX gives publishers the control, transparency and actionable insights needed to understand buyer behavior, manage access and pricing, and maximize revenue. The company is headquartered in Denver, Colorado, and has offices in Amsterdam, Belfast, Hamburg, London, Los Angeles, New York, Paris, San Francisco, Stockholm, Singapore and Sydney. In October 2017, RTL Group, a leader across broadcast, content and digital, will complete its 100% acquisition of SpotX. For updates, follow SpotX on Twitter and LinkedIn.

Contacts
Joanna Burton, VP, European Strategy
mailto:jburton@spotx.tv

About MTM
MTM is an international research and strategy consulting firm, specialising in media, technology and advertising. MTM helps clients in the private, public and not-for-profit sectors around the world understand and respond to digitally-driven change, providing award-winning consumer research, industry analysis, strategic advice, and support for new ventures, business development, and organisational change and transformation. MTM's approach combines in-depth knowledge of our sectors, a unique combination of skills and capabilities, and wide-ranging engagement with the market. Headquartered in London, MTM is a private company working with clients around the world.

For more information, contact Jon Watts at mailto:jon.watts@mtmlondon.com

Methodology
SpotX commissioned MTM to explore the prospects for connected TV advertising - advertising viewed on a connected TV and delivered via the open internet - in the five largest Western European TV advertising markets: the UK, Germany, France, Italy and Spain.

The research programme consisted of three main stages:
1. A review of industry data on connected TVs in the five markets, to establish a baseline of industry data about digital paid-for products and services
2. In-depth interviews with senior broadcasting and advertising industry participants, exploring their perspectives on the current state and future developments of connected TV advertising
3. A series of executive seminars in June and July 2017, held in London, Munich, Paris, Milan and Madrid. Each seminar was structured around a simple framework to explore industry executive views and develop a group consensus on the prospects for connected TV advertising in each market. All sessions were completed under the Chatham House Rule (no attribution without prior permission).


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