european programmatic market sizing 2017digitaltransmedia.digitaltransformers.cat/.../iab... ·...

EUROPEAN PROGRAMMATIC

MARKET SIZING 2017 REPORT

SEPTEMBER 2018

Advertising spend 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 that draw on data, commonly known as ‘ad tech’. Following the

IAB’s proposed taxonomy, ‘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 spend is 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.

Market totals and definitions adhere to the IAB Europe Adex Benchmark, our annual study of overall digital ad spend, in order to

ensure like-for-like comparability. All spend is recorded as gross (after discounts, before agency commission).

Data includes spend in Europe both on local/national media owner properties, and on global players like Facebook and Google.

DEF

ININ

G P

ROG

RAM

MA

TIC

Market coverage

Source: IAB Europe & IHS Markit

• Austria• Belgium• Belarus• Bulgaria• Czech Republic• Croatia• Denmark• Finland• France• Germany• Greece• Hungary• Ireland• Italy

• Netherlands• Norway• Poland• Russia• Romania• Serbia• Slovakia• Slovenia• Spain• Sweden• Switzerland• Turkey• UK

2,263

3,881

6,607

9,426

11,984

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 2015 2016 2017

Europe: Programmatic Ad Spend (€m)

European programmatic advertising is a €12bn market


Growth still double-digit but slowing as programmatic rapidly matures


71.5% 70.3%

42.7%

27.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2013 2014 2015 2016 2017

Europe: Programmatic Ad Spend YoY Growth

Traditional vs programmatic ad spend


20.7%30.8%

44.8%56.0% 62.0%

79.3%69.2%

55.2%44.0% 38.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

Europe: Digital Ad Spend by Transaction Mechanism

programmatic traditional

Programmatic direct attracts the most programmatic spend


8.0% 13.8%22.3% 28.9% 33.0%12.7%

17.0%

22.5%

27.1%28.9%

79.3%69.2%

55.2%44.0% 38.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

Europe: Digital Ad Spend by Transaction Mechanism - Detail

programmatic direct programmatic indirect non-programmatic

Programmatic drives the video ad market in Europe, which is now programmatic-first


236 477931

2,374

3,907

1,3921,793

2,204

1,536

1,365

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 2017

Video: Programmatic vs Traditional Ad Spend (€m)

video programmatic video traditional

1/3 of programmatic ad spend is video


10.4%

89.6%

2013

video non-video

32.6%

67.4%

2017

video non-video

Programmatic video is a €4bn market, growing 4.5x faster than banner in 2017


102.2% 95.3%

155.1%

64.6%67.9% 66.8%

24.2%14.5%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

2014 2015 2016 2017

YoY Growth in Programmatic: Video vs Banner

video banner

236 477 9312,374

3,9072,027

3,404

5,676

7,052

8,077

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 2015 2016 2017

Programmatic Spend: Video vs Banner

video banner

Programmatic dominates the mobile ad market


281 7542,355

4,422

6,776

1,0751,582

1,405

1,343

1,356

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2013 2014 2015 2016 2017

Mobile: programmatic vs traditional ad spend(€m)

mobile programmatic mobile traditional

Rapid change: more than half of programmatic spend is now mobile


12.4%

87.6%

2013

mobile desktop

56.5%

43.5%

2017

mobile desktop

€6.7bn of programmatic spend is mobile, desktop growth nearly flat


168.9%

212.2%

87.8%

53.2%57.7%36.0%

17.7%4.1%0%

50%

100%

150%

200%

250%

2014 2015 2016 2017

YoY growth in programmatic: mobile vs desktop

mobile desktop

281 7542,355

4,422

6,776

1,9823,126

4,252

5,004

5,208

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 2015 2016 2017

Programmatic spend: mobile vs desktop

mobile desktop

Programmatic trends between Western and Central & Eastern Europe


94.5% 92.5% 93.0% 92.5% 90.2%

5.5% 7.5% 7.0% 7.5% 9.8%

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017

Share of programmatic by region

WE CEE

24.0%

65.0%

0%

20%

40%

60%

80%

100%

120%

140%

2014 2015 2016 2017

Growth of programmatic by region

WE CEE


• This study is based on raw data submitted by national IABs. Data has been edited and supplemented to ensure a full market picture and like-for-like comparison.

• Out of the 27 IABs, each representing a country, 16 IABs provided data on programmatic spend, 9 IABs submitted data on programmatic video spend, and 4 reported programmatic mobile spend.

• We have harmonised the data submitted by local IABs to ensure they refer to the same rate (gross media owner revenue), and cover the same spectrum of market participants, formats and buying models.

• Coverage gaps (no or only partial reporting) have been filled with estimates from IHS Markit’s Advertising Intelligence database, and custom econometric modelling.

Raw data provided by

national IAB for country A

Raw data provided by

national IAB for country B

No data provided by

national IAB for country Z

all formats (mobile, video, banner)

included?

Programmatic video model

Programmatic mobile model

Google/Facebook/global platform

models

Overall programmatic

model

*models based on total digital ad spend/subsegments per market, structural market factors, CPM/CPC & inventory trends, similarities with markets that have provided full information)

Google/Facebook/global platforms

counted as programmatic?

correct rate (gross spend on media

owners?

Publish

harmonisedefinitions & rates

Collect Check Define Model & adjust Benchmark

compare country trends

reference with CPM/CPC &

inventory data

expert validation

Schematic illustration of market sizing process

MET

HO

DO

LOG

Y

CONTACT

ABOUT IAB EUROPEIAB Europe is the leading European-level industry association for thedigital advertising ecosystem. Its mission is to promote the development of thisinnovative sector and ensure its sustainability by shaping the regulatory environment,demonstrating the value digital advertising brings to Europe’s economy, to consumersand to the market, and developing and facilitating the uptake of harmonised businesspractices that take account of changing user expectations and enable digital brandadvertising to scale in Europe.

www.iabeurope.eu

@iabeuropeMarie-Clare [email protected]

/iab-europe

GET

IN T

OUCH

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