Nearly one-in-four (23%) online video ads traded in the UK are now done so via programmatic technology, according to a recent research report from video supply-side platform (SSP) SpotX, conducted by IHS. Additionally, over one-third (36.1%) of all European programmatic online video revenue comes via the UK.
The report found that programmatic online video across Europe grew “almost twenty-fold” from €22 million ($24.8 million) in 2012 to €375 million ($423 million) in 2015. IHS notes that it is expected to grow at a rate of 38.7% over the next five years, reaching €2 billion ($2.25 billion) by 2020.
Of that €2 billion, the UK is expected to account for €602 million ($680 million) of it. The UK programmatic video ad market is currently valued at €135 million ($152 million).
In a similar vein, the majority of online video advertising in the UK is expected to be programmatic by 2020. The report notes that 60% of online video ads in the UK will be programmatically-traded in 2020, up from 23% in 2015.
France is expected to be the second largest marker by 2020, with Italy, the Netherlands and Germany all growing rapidly as well.
“The report sizes the programmatic video advertising in Germany at €31 million ($35 million), with growth expected to reach €254 million ($286 million) in 220, making it the third largest market in Europe,” noted SpotX.
“We first analysed the programmatic video advertising market in 2013 and could see it was set to explode across Europe,” stated Daniel Knapp, senior director of advertising research at IHS. “Our new analysis reveals the extent of the growth trajectory for online video advertising, with programmatic video advertising growing rapidly and taking an ever increasing share.”
The 2013 report was covered by Real-Time Daily when it was released two years ago. That reported projected the UK programmatic online video market to reach €224.5 million ($253 million) by 2017, and the updated figures showing the UK market at €135 million ($152 million) show that the change is well underway.
The full report can be found here.