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The Current State of the Programmatic Advertising Market

On the 15th March, IAB Europe hosted its ‘Network Next’ Meeting to bring all National IABs together to discuss industry trends and share best practices across Europe. As part of the discussions, IAB Europe’s new Chief Economist, Dr Daniel Knapp, gave an update on the programmatic advertising marketplace (presentation available to download below). As part of Daniel’s new role, IAB Europe will be bringing members regular market insights and economic growth stats, to keep you better up to date on what’s happening within the ever-changing ecosystem!

To accompany the presentation, IAB Europe’s Business Programmes Manager, Marie-Clare Puffett, has provided some commentary around the trends including insights from the Programmatic Trading Committee.

Non-programmatic will be a Thing of the Past

As the stats show, programmatic will be the driving force behind all future digital advertising growth, with the ‘non-programmatic’ share being greatly reduced by 2023. The IAB Europe Programmatic Market Sizing Report highlighted that digital display ad spend is now programmatic first; 62% of European display ad spend was traded programmatically in 2017, whilst mobile was the ‘most programmatic’ format as more than 80% of mobile was traded programmatically.

Programmatic Video Dominates Growth

Programmatic video is clearly an opportunity and disrupter within the digital advertising market. Video advertising can be delivered via a variety of different channels and mechanisms from online video delivered on a desktop or mobile, through to programmatic linear TV – the opportunities are vast. As such, video is gaining its share of the programmatic pie and in 2017 a third of programmatic ad spend was in video.

The video opportunity is further backed up by the fact that the growth in connected devices is coming from smart TVs and Pay TV STBs as opposed to other devices such as smartphones. Indeed, connected TV advertising spend is expected to double in France, Germany, Italy, Spain and the UK by 2023. IAB Europe  explored the key opportunities and challenges of connected TV advertising in a white paper and will continue to explore this trend in 2019. The paper touches upon measurement and creativity considerations and was written by members of IAB Europe’s Programmatic Trading Committee and Video Task Force including Adform, Carat, Freewheel, Publicis Media Group and SpotX.

Listen up, Audio is Growing

Another key growth area is audio advertising driven mainly by podcast and music streaming services and expected to become a €1bn market by 2023. However, this trend and growth is causing a shift-change in the advertising landscape. From streaming our favourite music to listening to the latest podcast digital audio is a key part of media consumption. In a new blog series, IAB Europe’s Programmatic Trading Committee will explore how the programmatic audio landscape is evolving across Europe, the key opportunities and challenges that it presents and what the future looks like, including how voice will also impact the advertising space.

Want to Delve into and Determine Trends? Join Us!

IAB Europe’s Programmatic Trading Committee’s objective is to increase understanding of the programmatic ecosystem and the impact it is having on digital advertising and influence industry initiatives to improve the ecosystem. As part of its annual work plan, the Committee develops and delivers a comprehensive pan-European programme of educational outputs. The key topics on its 2019 work plan include programmatic audio, DOOH, connected TV, 101 videos on how programmatic works. In addition, the committee delivers two key pieces of research each year; Attitudes to Programmatic Advertising, the industry benchmark survey to understand the current adoption, barriers, drivers and strategies and the European Programmatic Market Sizing report to understand the investment trends in the region. If you would like to get involved, please contact Marie-Clare Puffett (puffett@iabeurope.eu).

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