Programmatic ad spend in Europe 2018€¦ · • Automated process of buying and selling...

Programmatic ad spend in Europe 2018

September 2019

WHAT IS PROGRAMMATIC: DIFFERENT SCHOOLS OF THOUGHT DEPENDING ON COUNTRY & COMPANY

• Automated process of buying and selling advertising inventory through software, data, and algorithms. Programmatic can refer to the automation of workflows associated with buying and selling, as well as the transactions themselves. Transactions are either based on fixed prices, or on auction-based models.

• Ad Spend transacted via the Open RTB protocol.

PROGRAMMATIC IN EUROPE IS A €16.8BN MARKET

2,234

3,831

6,522

9,306

12,589

16,781

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2013 2014 2015 2016 2017 2018

Total programmatic (incl. social)

PROGRAMMATIC IS THE NEW ‘DIGITAL’ - AN UNNECESSARY PREFIX

72.1%

27.9%

2018

programmatic non-programmatic

20.0%

80.0%

2013

programmatic non-programmatic

Share of Digital Ad Spend in Europe by Transaction Mechanism

EUROPE HAS BEEN A PROGRAMMATIC-FIRST DIGITAL AD MARKET SINCE 2016

2,234 3,8316,522

9,30612,589

16,7818,943

9,045

8,568

7,913

7,206

6,480

0

5,000

10,000

15,000

20,000

25,000

2013 2014 2015 2016 2017 2018

Europe: Digital Ad Spend by Transaction Mechanism

total programmatic total traditional

Inflection point

PROGRAMMATIC CONTINUES TO GROW DOUBLE-DIGIT DESPITE MARKET MATURITY

71.5

%

70.3

%

42.7

%

35.3

%

33.3

%

1.1%

-5.3

%

-7.7

%

-8.9

%

-10.

1%-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2014 2015 2016 2017 2018

Europe: Digital Ad Spend YoY Growth

programmatic non-programmatic

APPLYING A NARROWER DEFINITION : SOCIAL DOUBLE THE SIZE OF PROGRAMMATIC TRANSACTED VIA OPEN RTB STANDARD

4,3255,477

8,264

11,30512,589

16,781

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2017 2018

Europe: Programmatic Ad Spend (EURm)

total programmatic (excl. social) social as programmatic total programmatic (incl. social)

A NARROWER DEFINITION: GROWTH COMES FROM PROGRAMMATIC, NOW HALF OF DISPLAY

4,3255,477

6,0375,389

0

2,000

4,000

6,000

8,000

10,000

12,000

2017 2018

Europe: Programmatic Ad Spend excl. social (EURm)

programmatic non-programmatic

42%58%

2017

programmatic non-programmatic

50%50%

2018

Note: Total adjusted by removing affiliate, email newsletter to provide relevant display subset against which to benchmark ‘programmatic’.

-10.4%

26.6%

MORE THAN HALF OF ALL VIDEO SPEND IS PROGRAMMATIC

9.4%13.7%

19.9%

34.9%

48.2%

54.4%

0%

10%

20%

30%

40%

50%

60%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013 2014 2015 2016 2017 2018

Europe: Digital Video Ad Spend by Transaction Model (EURm)

programmatic video other video share programmatic video

Note: includes in-stream, out-stream and in-feed video

¼ OF ALL PROGRAMMATIC SPEND IS VIDEO

92.4% 91.0% 89.7%81.6% 77.7% 75.2%

7.6% 9.0% 10.3%18.4% 22.3% 24.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 2018

Programmatic in Europe: video vs other formats

non-video video

PROGRAMMATIC VIDEO GROWS FASTEST, BUT VIDEO OUTSIDE PROGRAMMATIC IS ACCELERATING

71.5

%

70.3

%

42.7

%

35.3

%

33.3

%

1.1%

-5.3

%

-7.7

%

-8.9

%

-10.

1%

102.

2%

101.

1% 118.

7%

86.4

%

47.6

%

32.9

%

28.1

%

1.4% 7.

2% 15.2

%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

2014 2015 2016 2017 2018

Europe: Digital Ad Spend Growth by Format & Transaction Model

programmatic non-programmatic programmatic video other video

CEE REGION IS ENJOYING 2ND MOVER ADVANTAGE, OUTPERFORMING GROWTH AND CLAWING SHARE

94.5% 93.5% 92.0% 90.5% 89.2% 87.5%

5.5% 6.5% 8.0% 9.5% 10.8% 12.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 2018

Europe: Share of Programmatic Ad Spend by Region

WE CEE

CONTACT

Marie-Clare Puffett

Marketing & Business Programmes Manager

puffett@iabeurop.eu

iabeurope.eu

@iabeurope

/iab-europe