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Optimism overGerman ad market buoys ProSiebenSat.1

The outlook for the remainder of 2010 for the German TV advertising market – the largest in Europe – is bright, according to analysts.

Following a meeting with the country’s largest media buyer, investment bank Morgan Stanley noted that the strong growth seen in the first half of 2010 will continue through the rest of the year. Key buyers are increasing their ad spend and price increases for attractive slots are already being introduced. Media buyers expect the growth to flow through into 2011, when early forecasts suggest a 5% increase in net revenues.

In the wake of the positive forecasts, Morgan Stanley raised earnings estimates for free-to-air broadcast group ProSiebenSat.1. Compared to its peers throughout Europe the German broadcaster is well positioned, the investment bank said, noting recent results that exceeded market expectations and management’s upbeat tone when discussing revenue trends.