Germany is one of the strongest TV markets in Europe. According to eMarketer, traditional TV is still hugely popular in the country, with adults devoting 37.3% of their daily media time (about 3:38 hours) to it. Some estimates even have that number increasing by one-to-two minutes in 2018. Needless to say, the German TV advertising market is also strong, and expected to grow to $5.2 billion.
Germany is one of TVSquared’s fastest-growing regions, and we recently opened our Munich office in conjunction with our acquisition of wywy. We spoke to Mel Eckl, TVSquared’s sales director, who is heading up our Munich office, about the German TV market and what trends we can expect this year.
Tell us a little about yourself.
While I was born in Norway, I grew up in Munich, where I studied economics and marketing. I was the VP of sales at wywy and transitioned into the role of sales director when TVSquared acquired us last November. I’m now running the Munich office and focused on supporting our rapidly expanding client base in the DACH region.
Outside of work, I love to hike and climb. I’m also a runner and currently training for the Berlin Marathon.
What are the biggest demands from TV advertisers in Germany?
TV is still the largest marketing channel in Germany. But the way advertisers use it is changing. While it used to be leveraged for either brand awareness or direct response, that line is blurring. It’s not either/or anymore.
The rise of the second-screen, and the fact that most TV viewers watch with them in their hands or nearby, has made TV an even more dynamic, powerful marketing channel. It drives both immediate response via digital and contributes to longer-term brand awareness. In many ways, TV is even more powerful today than it was years ago.
TV is now a performance-driven marketing channel. For German TV advertisers, much like advertisers across the globe, the demand for attribution technology to measure and optimize TV’s short- and long-term roles in the customer journey, is high.
Can you tell us about some successes German clients have had with TV measurement/optimization?
TV success is different for every company. Measuring TV’s success should reflect how spots impacted a brand’s unique KPIs. For an online store, it’s sales; for an auto brand, it might be test-drive requests; for a restaurant chain, it could be coupon downloads. In general, I’ve seen our clients optimize TV to improve response by 30% and more.
How important is cross-country TV advertising in Germany?
Germany has always dealt with cross-country marketing for the DACH region. TV advertisers typically cover Germany, but also Austria and Switzerland.
Due to this, German brands have also had to do cross-country measurement and, I think, that has made them even smarter, more savvy advertisers. Not only do they have to understand the challenges/opportunities in Germany, but for different markets as well. They have to adapt creatives, buys and strategies to optimize TV in different regions. So, it’s second-nature when a German brand has to expand advertising initiatives throughout the EU or globally.
What are some trends for the German TV market in 2018?
I see German advertisers starting to leverage TV not only for brand awareness, but also as a direct-response generator. TVSquared often says that every brand is a little bit DRTV, and that’s completely true. It will be interesting to see what advertisers will do with their calls-to-action to leverage this.
We’ll also see a rise in media for revenue/equity deals that will allow smaller companies to advertise on TV. There’s a perception that smaller brands can’t take advantage of TV due to cost constraints, but this is not the case anymore. We’re seeing brands of all shapes and sizes leverage TV for marketing.
What should brands and agencies know about TV as a marketing channel?
Expanding on what I said before, TV is no longer reserved only for big players to get big reach. It’s a dynamic, performance-driven channel that’s measurable and optimize-able, and will support the effectiveness of marketing strategies for every advertiser.
What’s your favorite TV show?
While it’s quite old now, I do love “Friends.”
What’s your favorite TV ad of all time?
By far, the Coca-Cola Christmas Trucks ads.