European Programmatic Market Grew 70.3% In 2015

The Interactive Advertising Bureau (IAB) Europe on Wednesday announced at the dmexco conference in Cologne, Germany that the total programmatic display advertising market in Europe jumped 70.3%, from €3.4 billion in 2014 to €5.7 billion in 2015.

The IAB's European Programmatic Market Sizing research also found that mobile display is the “most” programmatic format in 2015, with 45% of mobile display traded programmatically -- more than any other format.

Mobile programmatic grew by 165% in Europe, largely fueled by the growth in social media advertising.

Programmatic video grew by 95% in 2015 and now accounts for almost a quarter of online video ad spend. 

The European Programmatic Market Sizing research was produced by IAB Europe and research firm IHS Technology, and aggregates data to ensure all stakeholder perspectives were included. The numbers are based on ad spend reported by IABs, transactional data, statistical, and econometric models, and knowledge from industry experts.

 “The research shows that programmatic is rapidly becoming the new default through which advertising is bought and sold," stated Daniel Knapp, senior director, advertising research at IHS.

"Over the past years, we have witnessed a complete re-architecting of the digital advertising ecosystem on the principles of data and algorithmic infrastructures, and these are now being monetized.

"Programmatic has itself evolved from the auctioning of remnant inventory, to attracting brand advertising and making inroads into new trends such as native advertising.

"Yet despite the optimistic picture painted by the numbers, a discrepancy remains between programmatic promise and practice. The programmatic skills gap among advertisers and publishers alike remains high. Access to data and their analysis creates new winners and losers. And programmatic alone, is not a silver bullet to fix all marketing challenges, but requires a more systematic reconciliation of data-driven and creative-led approaches."

Ad-tech executives commented on the programmatic numbers:

Gerhard Louw, senior manager, international media management & digital transformation at Deutsche Telekom: “Programmatic media buying is growing rapidly in Europe and cannot be ignored any longer by advertisers. My best advice is to start small and continue to test. Programmatic is, in the first place, all about automation and exploring and using the potential of data, the 'new gold' in marketing."

Jana Eisenstein, EMEA managing director at Videology: “While year-on-year growth of 36% in online video revenues is an encouraging marker for the increased confidence that advertisers now place in online video as a legitimate marketing channel, the more meaningful development is the doubling of video revenue executed programmatically for the same time period.

"There is some considerable headroom for programmatic video growth, until it achieves parity with display and mobile, but with programmatic approaching the 50% of revenue threshold in both these formats, we are entering the era of normalized programmatic for all digital media, irrespective of device or media. We will continue to see very strong growth in topline digital video revenue and a continued acceleration of programmatic video revenue through 2016 and beyond.”

Next story loading loading..