Last quarter there were again plenty of interesting developments in the media landscape. For example, we signal positive developments in the economy and media spending. High viewing figures were achieved on TV by Sports Summer, but 'B&B Vol Liefde' was also a hit (again). Meanwhile, audio consumption remains up, Instagram is testing unskippable ads and we are mapping how important digital reach is for newspapers and magazines. Also, the phasing out of 3rd party cookies is definitely off the table and Apple is betting big on AI. You can read exactly what is happening in theSTROOM Quarterly Update Q2 2024.
Market: Household consumption important for growth
The Dutch Central Bank forecasts moderate GDP growth of 0.5% this year, rising to 1.3% in the coming years. This growth will be driven by higher government and household spending, with stable consumer confidence underpinning it.
Figure 2: Consumer confidence, CBS 2023
Media expenditures
In June, media expenditures exceed last year's level due to the influence of the Sportzomer. Retailers in particular pick up on the Sports Summer and increase media spending in June by 38% compared to last year. And the additional media spend in June is mainly on television, radio, digital media and OOH.
Figure 4: Nielsen gross media spending by industry June 2024
Video: Viewing time increases
Average viewing time to television channels increased significantly to 123 minutes per day in June 2024, compared to 106 minutes in the same period last year. This is due to major sporting events such as the European Championships. Viewing figures for these rose from 4.5 million for the Netherlands' group matches to 8 million for the semifinals. And popular programs such as 'B&B Vol Liefde' also contributed to this increase. This viewing figure canon lives up to the high expectations again; with an average of 2 million people watching this program on TV (excluding Videoland)

VOD
At the same time, VOD services are raising their prices, leading to a greater difference between subscriptions with and without ads. Despite this price increase, the Dutch lag far behind Americans in their spending on VOD services.
The greater price difference also makes it more attractive for consumers to choose a variant with ads. On average, Dutch people spend 350 euros per year on VOD services. In the USA, this is as much as 845 euros. Connected TV (CTV) spending is growing fast in the USA and largely compensates for the decline in linear TV spending.

Audio: Radio remains a stable factor
With constant listening time across all target groups, radio is stable. Notable is the increasing use of smartphones ( 35%) to listen to radio, in addition to the widely popular car radio (60%).
Total listening time
2/3 of total listening time comes from radio. Younger people listen less to traditional radio, while older people remain more loyal to this medium.
Figure 8: NMO Share of audio format by target audience 2024
Social media: Instagram demands attention
Instagram is seeing an increase in daily use among almost all audiences except teens. The platform is especially popular among 25-29-year-olds, with 63% daily use. In addition, Instagram is testing unskippable ads, leading to mixed reactions from users.

Print: Digitally enhanced print
The digital transformation is also noticeable in the print sector. AD and Telegraaf dominate the digital news landscape because the Dutch primarily consult AD and Telegraaf for digital news; digital reach is much higher than other dailies, while Volkskrant and FD remain relatively strong in paper print versions. Magazines such as Libelle and LINDA reach millions of readers, each through their unique mix of print and digital. And the traditional leaflet remains popular for the shopping list, while digital leaflets are becoming increasingly interactive.
Figure 11: NPMM 2023 monthly magazine reach
Leaflets
It is striking that about half of the Netherlands still uses the leaflet to determine the shopping list. However, the reach of the digital folder has risen sharply in recent years and now stands at 8.1 million Dutch people. Interactive elements are increasingly appearing in the digital folders to activate consumers as shown in Figure 13.


Tech & data: Phasing out 3rd party cookies in Chrome will not happen
Instead of phasing out 3rd party cookies, Google is looking for an alternative to improve user privacy. The details of this are still unknown. Google announced in 2020 to stop 3rd party cookies in 2022. But after two years of delay, there is now talk of postponement.
The share of digital ads purchased on 3rd party cookies was already decreasing sharply in the Netherlands in recent years; from 91% to 44%.


Retail media: Innovations in retail media
In the retail media sector, AH is innovating with the introduction of video ads within their network and new advertising on delivery vans.
RetailMedia.One is expanding its network with screens at SPAR University, providing high reach among students. And meanwhile, AH, Kruidvat, Hema and Bol are the largest online retail platforms within their categories.

Plenty of interesting developments this past quarter. If you want to know more about this, we can be reached at contact@stroom.com.