In March 2015, the European Audiovisual Observatory published „The development of the European on-demand market for audiovisual services,” a report that focuses on the development and impact of the audiovisual sector. This article sums up important findings, following the first three sections in the report.

Total online advertising spend in Europe 2013 in EUR billion

Key findings in the report

1. The total online ad spend in Europe was €27.3 billion in 2013, up by more than 11.9% year-on-year.
2. In 2013, online ad spend was higher than TV advertising in the UK, Germany, and Sweden.
3. Paid-for-search advertising is the number one format, representing 48.7% of the total €11.5 billion.
4. Display advertising is number two format with a share of 33.8% (€8 billion) and growing at a faster pace with year-on-year growth of 14.3%.
   • In Western Europe, paid-for-search is the number one format (market share of 48.6%).
   • In Central Eastern Europe, display advertising is the number one format (market share of 52.7%).

5. The UK has the highest per-capita ad spend with €115.2, Romania the lowest with €1.5.

6. Display advertising is the most relevant form of advertising for online video sites, with a value of €8 billion in 21 EU countries in 2013.

7. Online video advertising had a market value of €1.03 billion in 2013 for 17 EU countries where data was found, an increase by 45.1% since 2012.

8. Mobile display advertising was worth €937.8 million for 18 countries where data was available, an increase of 130.7%.

Over-the-top video revenues in Europe 2013 & 2018, in USD billion

Key findings in the report

1. Subscription video on-demand services is the fastest growing business model in Europe, representing 26.4% of Europe’s consumer spending on digital video services (HIS).
2. The number of European subscribers to SVoD services rose to 18 million in 2014 and is projected to rise to 59 million by 2020.
3. 30% of Western European TV households and 7% of Eastern European TV households are projected to subscribe to SVoD services by 2020.
4. The revenues generated by OTT video in Europe will reach $9.5 billion in 2018. 5. Subscribers viewing time amounted to 93.2 minutes a day on average in 2014, an increase of 350%. Percentage of total video works in VoD catalogs by origin and genre

Key findings in the report

To gather data on the proportion of European works in VoD catalogs, for the report in cause, 285 services were contacted, and 74 replies were received.

1. The most prominent business models are TVoD with 21 existing services, SVoD with 20 services, and EST with 13 existing services.

• TVoD: 57% declared a proportion of European works below 50%, 38% declared a proportion above 50%, 1 did not reply.
• SVoD: 16% declared a proportion of European works below 50%, 15% declared a proportion above 50%, 1 did not reply.
  1. 50% of services declared a proportion of European works below 50%.

1. 24.3% declared a proportion above 50%.

2. 25% did not provide any information on the proportion of European works in their catalogs.