Social media and video advertising are the fastest growing digital advertising segments worldwide. There are plenty of studies that cover one or another of these segments. However, there is no study that looks at social and video advertising as a whole. At Mediahead, we did some research in order to bring you the first comprehensive study about the DACH market that looks into social media and video advertising combined. Key Findings - The DACH market for digital video and social media will grow strongly and constantly in the next 5 years - Today, most digital video ads are still run on desktop, whereas social media ads are mostly run on mobile - The share of ads on mobile is growing steadily on both digital video and social media - Since most Social Video ads are run on mobile already, the prospect for an exponential growth of this product is very promising For more details: https://www.mediahead.com/blog/social-video-advertising-in-the-dach-region

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SOCIAL VIDEO
MARKET ANALYSIS
DACH

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There are many studies that cover
social media or online video. However,
there is no single study that looks into
social and video advertising combined.

4. • DACH market for digital video and social media will
grow strongly and constantly in the next 5 years
• Social media ad revenue outperforms digital video ad
revenue
• Digital video ads are mostly run on desktop, whereas
social media ads are mostly run on mobile
• The share of ads on mobile is growing steadily on both
digital video and social media
Key Findings
4

5. DACH Market Outlook
Social Media Ad Revenue
0
200
400
600
800
1000
1200
2016 2021
+68%
InmillionUSdollars
0
100
200
300
400
500
600
700
800
900
1000
2016 2021
+80%
InmillionUSdollars
Digital Video Ad Revenue
Statista, 2016
5

6. A Closer Look to the Future
InmillionUSdollars
• Social media ad revenue average annual growth 11.0%
• Digital video ad revenue average annual growth 12.4%
Statista, 2016
6
0
200
400
600
800
1000
1200
2016 2017 2018 2019 2020 2021
Social Media Ad Revenue Digital Video Ad Revenue

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GERMANY

8. Digital Video Ad Revenue
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019 2020 2021
Desktop Mobile
InmillionUSdollars
Average
annual
growth rate
12.34%
Statista, 2016
8

9. Social Media Ad Revenue
Statista, 2016
0
200
400
600
800
2016 2017 2018 2019 2020 2021
Desktop Mobile
InmillionUSdollars
Average
annual
growth rate
11.00%
9

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SWITZERLAND

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0
20
40
60
80
100
120
140
160
2016 2017 2018 2019 2020 2021
Desktop Mobile
InmillionUSdollars
Statista, 2016
Digital Video Ad Revenue
Average
annual
growth rate
13.03%

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InmillionUSdollars
Statista, 2016
0
20
40
60
80
100
120
140
2016 2017 2018 2019 2020 2021
Desktop Mobile
Social Media Ad Revenue
Average
annual
growth rate
13.70%

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AUSTRIA

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0
5
10
15
20
25
30
35
2016 2017 2018 2019 2020 2021
Desktop Mobile
InmillionUSdollars
Statista, 2016
Average
annual
growth rate
12.21%
Digital Video Ad Revenue

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0
20
40
60
80
100
120
2016 2017 2018 2019 2020 2021
Desktop Mobile
InmillionUSdollars
Statista, 2016
Social Media Ad Revenue
Average
annual
growth rate
8.10%

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COMPARISON

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0
2
4
6
8
10
12
14
16
Germany Switzerland Austria
Digital Video
0
2
4
6
8
10
12
14
Germany Switzerland Austria
Social Media
InUSdollars
InUSdollars
Average Revenue per User
DACH:
Ø US$ 6.7
DACH:
Ø US$ 9.2
Statista, 2016
• The digital video ARPU in Switzerland is significantly higher than the ARPU in
Germany and Austria
• The social media ARPU in Switzerland and Austria is similar and both are higher than
in Germany

18. Social Media Penetration Rate
in Percentage of Population
36% 38% 40% 42% 44% 46% 48%
Germany
Switzerland
Austria
DACH:
Ø 44.6%
POPULATION: United Nations; U.S. Census Bureau. SOCIAL MEDIA USERS: Facebook, Tencent, Vkontakte, Liveinternet.ru, kakao, naver, niki, agajei, cafebazaar.ir, similarweb, dig,
extrapolation of tns data 18
• The penetration rate is highest in Switzerland
• Since more than 50% of social media use is on mobile, this finding corresponds to
the relatively higher smartphones penetration rate in Switzerland compared to other
countries in the region
• In Germany, the smartphone penetration rate is at 60%, compared to 75% in Switzerland

19. Social Media Usage by Channel
in Percentage of all Social Media Users
19
0% 20% 40% 60% 80% 100%
Germany
Switzerland
Austria
Facebook YouTube Twitter Instagram
Statista, 2016. ZHAW, 2016
• Facebook and YouTube are the most popular platforms in DACH
• Switzerland has a slightly higher Twitter and Instagram adoption rate compared to
Germany and Austria

20. Digital Video Ad Revenue
Statista, 2016
• Currently, most digital video ads are shown on desktop
• The mobile share will increase in the DACH market, with Germany having the highest growth
• Despite the similarity in size, Switzerland has a significantly bigger digital video ad market
than Austria
0
100
200
300
400
500
600
700
800
Desktop Mobile
InmillionUSdollars
20
2016 2017 2018 2019 2020 2021

21. Social Media Ad Revenue
Statista, 2016
0
100
200
300
400
500
600
700
800
Desktop Mobile
InmillionUSdollars
21
2016 2017 2018 2019 2020 2021
• Mobile is dominating the social media sphere in DACH
• The share of mobile in social media ad revenue is much higher in Germany than
in Switzerland and Austria

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CONCLUSION
Desktop currently serves as the main device for digital video ads, but the
share of mobile is increasing steadily.
On the contrary, the lion's share of social media ads is shown on mobile
already , with an even stronger trend in the future.
Hence, we believe that the increase in mobile video advertising is mainly
attributed to the growth in mobile social media ads.
Now, since most Social Video ads are run on mobile already, the prospect
for an exponential growth of this product is very promising.

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ABOUT US
Mediahead is a Swiss based ad tech company operating in Zurich that
offers its clients best-in-class technology for programmatic advertising.
Mediahead helps you to plan efficiently, have control of the budget flows
and know about the distribution of your campaign in detail with a single
login.
Our cutting edge Social Video solution offers you an automated and
efficient way to run video advertising campaigns across all major social
media platforms in just one click. This allows you to concentrate on what is
important and invest your time into the strategic aspects of online media
planning.

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Mediahead AG
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CH-8005 Zürich
Tel: +41 44 515 74 00
Mail: ops@mediahead.com
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