As more advertisers switch to automated ad buying for their digital campaigns, new research suggests the programmatic market is already booming- rising a massive 111% during 2013.
The research shows that the programmatic market in Europe leaped 111% from €0.98bn in 2012 to €2.08bn in 2013. The European figure released today includes online display and mobile display to ensure all corners of the ecosystem are captured.
The report, from IAB Europe/IHS Technology, determined ‘programatic ads as falling into four categories: automated guaranteed, unreserved fixed rate, invitation-only auction or open auction.
The report found that that while almost one-fourth (23.6%) of Western Europe’s 2013 display advertising revenue came from programmatic, just 9.5% of Central & Eastern Europe’s display ad revenue did.
Combined (Western, Central & Eastern), 21.3% of display ad revenue came via programmatic in 2013.
Video and mobile driving growth
Video programmatic has an expected compound annual growth rate (CAGR) of 82% from 2012-2018, while video (all) has a CAGR of 38.3%. Mobile is third with a 37.9% CAGR, while display programmatic is at 32.8% and display (all) is at 6.9%.
View key findings below:
The European figure released today includes online display and mobile display to ensure all corners of the ecosystem are captured.
The project has been managed by the IAB Europe Programmatic Trading Task Force, a multi-stakeholder initiative to help Publishers, Agencies and Advertisers increase their understanding of the programmatic ecosystem and the impact it is having on digital advertising. The Task Force will deliver a comprehensive programme of educational activities.
Townsend Feehan, CEO of IAB Europe said “A reliable sizing of the Programmatic market is another valuable asset both for businesses operating in the digital advertising ecosystem and for stakeholders seeking to better understand the development of this young and innovative sector”.
Daniel Knapp, Director of Advertising Research at IHS Technology and author of the research, said “It is undeniable that programmatic trading is growing. The array of existing studies, IPO and investment activities and qualitative industry feedback say that much. However actual size and volume have remained open to debate. This study provides an impartial view in coordination with national IABs”.
Graham Wylie, member of the IAB Europe Programmatic Trading Task Force and Senior Director EMEA & APAC Marketing at AppNexus said “This programmatic market sizing from IAB Europe provides a compass for media owners, agencies and other players alike as to where the market is heading and which business decisions to make”.
IAB Europe’s programme of initiatives includes the first pan-European Programmatic Trading White Paper published in July 2014 and will continue with a Glossary of Key Terms, further White Paper extensions and a presentation series.
Read the full report here
Methodology
IAB Europe and IHS Technology took a holistic approach to aggregating the data to ensure all stakeholder perspectives were included. The numbers are based on ad spend reported by IABs, transactional data, statistical and econometric models to infer a European market size and knowledge from industry experts.
This programmatic research will complement the IAB Europe AdEx Benchmark report, the definitive guide to the state of the European online advertising market. Further development of research into the Programmatic market will continue to be undertaken in consultation with the IABs across Europe.