Annual And Corporate Responsibility Report 2017

5.1. Our business environment Note 1  SourceInfoadex Spanish Advertising Study 2018 In 2017 the macroeconomic environment in which Atresmedia operates was favourable: GDP grew 3.1% according to FUNCAS data, and growth is expected to hold up in 2018 at a rate of 2.6%. Although the economy is now on a firmly established trend of recovery, in 2017 the European advertising market grew by only 0.03%. This was largely because leading consumer goods companies – which historically are advertising-intensive – cut their marketing budgets across the board. However, free-to-air television in Spain benefited from an increase in advertising spend of 1% with respect to 2016, reaching 1.93 billion euros 1 . Consumption patterns across global society are changing at a dizzying rate, trending towards increased consumption on platforms that provide an alternative to conventional television as we know it. OTT platforms, which send content to a range of different devices over the Internet, herald non-linear television consumption, especially among younger audiences. Yet, despite the rise of new platforms, there is still a wide gap between them and linear television consumption: out of the average 4 hours and 25 minutes of audiovisual content that a person consumes (online video, OTT platforms and linear television), 85% of that time is devoted to linear television. Given this, we need to think about how technological development is providing the audiovisual industry with a key edge. First, technology opens up a new online channel for content distribution where – alongside many other active platforms – Atresmedia is playing a central role. Secondly, technology supports direct communication with the viewer and getting to know their expectations, which lets us personalise content and advertising. To rise to the challenge of the technological revolution, the media need to develop the capabilities required to bolster their business. In 2017, Atresmedia acquired Spain’s largest online video advertising marketer. We are now developing a Big Data project and working on a new version of Atresplayer, Atresmedia’s OTT platform. 5. WHATDOWEDO? | 33 | ATRESMEDIA  |  ANNUAL AND CORPORATE RESPONSIBILITY REPORT 2017