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IAB Europe has joined forces with IHS Technology to size the programmatic market at a European level. This is the first such initiative by a digital advertising industry body. IAB Europe values European Programmatic Market at €2.1bn in 2013.
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IAB Europe and IHS Technology, September 2014
IAB Europe Programmatic Market Sizing
Online will become biggest advertising medium by 2018
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Europe: Net advertising revenue by medium (€m)
TV Newspapers Magazines Radio OOH Cinema OnlineSource: IHS©IHS 2014
Online growth is fuelled by video, mobile, and tech
Display (all)
Display programmatic
Mobile display
Video (all)
Video programmatic
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
6.9%
32.8%
37.9%
38.3%
82.0%
CAGR in European Big 5*: 2012-2018
Source: IHS©IHS 2014
Online advertising revenue generated through programmatic mechanisms exceeded €2bn in 2013
Source: IHS/IAB Europe Programmatic Sizing Initiative©IHS 2014
2012 20130
500
1,000
1,500
2,000
2,500
951.2
1,932.233.2
147.0
Europe: programmatic online advertising revenue (€m)
Western Europe Central and Eastern Europe
+111%
2,079.2
984.5
Display Programmatic in Europe
2012 20130%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
11.9%21.3%
88.1%78.7%
Europe: online display advertising revenue by mechanism (%)
Programmatic Non-programmatic
76.4%
23.6%
Western Europe 2013
Non-Programmatic Programmatic
90.5%
9.5%
Central & Eastern Europe 2013
Source: IHS/IAB Europe Programmatic Sizing Initiative©IHS 2014
Advertising revenue that is generated through transactional or workflow automation mechanisms embedded in an infrastructure that relies on a set of rules applied by software and algorithms, commonly known as ‘ad tech’. Following the IAB’s proposed taxonomy[1], ‘programmatic’ here is an aggregate category that is composed of four discrete transactional models, each of which we consider a sub-set:
1. Automated Guaranteed,
2. Unreserved Fixed Rate,
3. Invitation-Only Auction,
4. Open Auction.
Advertising revenues are recognised as ‘programmatic’ whenever any of those mechanisms applies, irrespective of the inventory owner’s awareness of their involvement.
This means that revenue is also considered programmatic if inventory that is originally sold to an intermediary through non-programmatic means (e.g. agency bulk buying) is re-sold to an end-buyer programmatically.
Revenue is recognized as programmatic irrespective of whether the inventory owner acts directly, or indirectly via an intermediary.
The rate of revenue is net of any fees, commissions, service charges and any other deductions.
[1] http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_Sept_2013.pdf
This study defines programmatic as:
Presentation name | 6
Contact:
Alison Fennah, IAB Europe – [email protected]
Daniel Knapp, IHS Technology – [email protected]
@IABEurope
IAB Europe
www.iabeurope.eu
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