May 16, 2018 / 7:00 PM / a year ago

German TV to lag pick up in audiovisual ad revenues - VPRT

FRANKFURT, May 16 (Reuters) - Revenue in Germany from TV, radio and online ads is expected to rise between 2.5 and 3.4 percent in 2018, a slight acceleration from last year when the industry generated revenues of 5.885 billion euros ($6.94 billion), an industry association said.

Video and audio ads are expected to account for 40 percent of overall revenues for the first time, up from 38.4 percent in 2017, the Association of Commercial Broadcasters and Audiovisual Services in Germany (VPRT) said in a statement on Wednesday.

But television advertising is expected to underperform, with a gain 1.0 to 1.5 percent as streaming video ads watched over the internet grow by 15 to 20 percent, albeit from a far smaller base.

That underlines the challenge broadcasters face to diversify from traditional free-to-air, advertising-funded programming as viewing habits change and competitors offer on-demand services.

ProSieben Media SE cautioned last week that core profits could underperform in the second and third quarters, sending its shares sharply lower, while new CEO Max Conze urged shareholders to be patient as he maps a recovery.

RTL, the European broadcaster that is ProSieben’s main competitor in Germany, reports quarterly results on Thursday.

$1 = 0.8482 euros Reporting by Douglas Busvine Editing by Edmund Blair

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