Media Analysis - Generation Media looks at the viewing landscape in Germany

UK vs. Germany:

a children’s linear TV snapshot

We have been regularly reporting on how 2021 shaped up in terms of children’s viewing, as well as comparing the situation with 2020’s territories were released from lockdown. Germany only experienced a nominal -5% decline in toys TV advertising across the children’s commercial channels fluctuations. When we recapped 2020, we highlighted (YTD January-November) and this was largely that children’s impacts to children’s commercial channels driven by the +146% increase seen in toys and games had fallen by -22% for CH4-15 [children aged 4-15] year- advertising in May 2021. July, August, and September on-year. With the challenges that 2021 also saw increases from advertisers, leading the threw at us, do we think the year saw an improvement, or was the initial lockdown period (and unlimited access to a TV set) a novelty that “ NPD reported overall year-on-year demand for children’s linear TV to end with a very stable market in Germany. In the UK, year-on-year investments from toy advertisers to children’s linear TV saw declines of -21% quickly wore off? Let’s take this a step further and look that UK for the year-to-date (BARB, 2021). The only month where the UK saw an increase was April (+15%), and at how the children’s linear market in the consumers the largest declines were seen in June (-53%) and UK compares with Germany - another fundamental market in Europe, and a were clearly July (-63%). This, of course, is heavily impacted by the lower costs of linear TV in the previous year, as territory of interest for most marketers. leaving their TV stations reacted to loss of revenue caused by the In Q1 2021, despite both territories being in lockdown, we didn’t see any shopping pandemic with incentivized rates. While we can’t draw a direct comparison, it’s of the increases in viewings that we to the last interesting to note that for Germany, The NPD experienced in the prior year. In fact, both markets saw double digital declines minute, as we Group [NPD] reported a +5% increase in toys sales value versus 2020. If we compare that to to the children’s commercial channels in saw a boost at a ‘normal year’ such as 2019, this equates these months. As the two territories came out of during the to an +18% increase in toys sales value (NPD, January-November 2021). Meanwhile, the UK lockdown (March for the UK, and the end of April for Germany), this only pushed viewing to the commercial Black Friday sales “ is reportingly tracking behind Germany, with reports of a -5% decrease in value versus 2020, and a marginal 4% increase versus 2019 (NPD, channels into a further decline, as January-November 2021). children and parents undoubtedly spent more time Moving towards Q4 2021, the UK saw minimal taking advantage of being together at home and declines to the supply of children’s viewing of the investing in activities for the whole family. children’s commercial channels in October (-6%

However, this didn’t deter toys and games advertisers year-on-year), a result which supported advertisers from returning to make linear investments when these as they launched their Christmas campaigns. Yet those advertisers who were more affected by supply chain shortages and had to start their campaigns in November, were met with a -23% decline year-on-year in children’s viewing. In addition, at the time of writing, NPD reported that UK consumers were clearly leaving their shopping to the last minute, as we saw a boost during the Black Friday sales. But as the UK consumer moves gradually to buying online, this is negatively impacting the level of footfall in-store - so impulse buys of toys priced £20 or less have suffered, which explains the decline in sales for brands priced at this level. We’ll be sure to keep a close eye on how December sales perform across Europe, with the prediction that the UK will bounce back in line with other markets. Kate Moncur, associate director of Generation Media, looks at the viewing landscape in Germany: a fundamental market in Europe outside UK and a territory of interest for most marketers