European Programmatic Market webinar Monday 23rd November Good afternoon and welcome to the Webinar, we will start shortly
Today’s agenda and presenters • Introduction • European Programmatic market – size and key trends – Eleni Marouli, Senior Analyst, IHS • UK programmatic market – David Frew, Senior Programmes Manager, IAB UK • Polish programmatic market – Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group • Italian programmatic market – Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy Panel discussion: • Sally Silver, Chief Digital Officer, Amplifi (Dentsu Aegis Network) • Simon Halstead, Head of Demand Development International, AOL • Michael Greene, General Manager Supply Chain, AudienceScience
European Programmatic market – size and key trends
A € 3bn programmatic market for desktop banner display Europe: Programmatic Desktop Display NAR* ( € m) 3,500 +57.6% 2,900 3,000 2,500 2,000 1,841 1,500 1,000 500 0 2013 2014 Source: IAB Europe and IHS NAR = net advertising revenue; display data excl. mobile and video
Mobile programmatic explodes Progammatic Mobile Display NAR ( € m) 600 552 +240.2% 500 400 300 230 200 100 0 2013 2014 Source: IAB Europe and IHS NAR = net advertising revenue; display data excl. desktop and excl. video
Programmatic video market more than doubles Progammatic Video NAR ( € m)* 250 +176.6% 205 200 150 100 74 50 0 2013 2014 Source: IAB Europe and IHS NAR = net advertising revenue; desktop and mobile video
Within € 3.65bn programmatic total, desktop display dominates Programmatic formats in context ( € m) 4,000 Total: € 3657m 3,500 +70.5% 3,000 2,500 Total: € 2145m Video 2,000 Mobile Display Desktop Display 1,500 1,000 500 0 2013 2014 Source: IAB Europe and IHS
All formats now generate double-digit share of total revenue programmatically Share of format revenue that is generated programmatically 45% 39.3% 40% 35% 30% 27.3% 25.7% 25% 2013 20% 17.5% 2014 15% 12.1% 10% 6.1% 5% 0% Desktop Display Mobile Display Video Source: IAB Europe and IHS
Western Europe has lion’s share, but Central & Eastern Europe surges Total programmatic NAR: regional trends 4,000 3,500 3,000 2,500 Central & Eastern Europe 2,000 Western Europe 1,500 1,000 500 0 2013 2014 Source: IAB Europe and IHS
UK programmatic market David Frew, Senior Programmes Manager, IAB UK
A wide range of industry participants contributed to the research 31 survey respondent s 13 intermediar y interviews 14 media agency and expert interviews SOURCE: IAB Media Owner Sales Techniques 2014
Our focus is on how media owners sell inventory – we have retained last year’s framework Direct sales Programmatic direct (e.g. Following private marketplaces) feedback Inventory bought at fixed prices Inventory bought from a particular media from media Direct directly from media owners through in- owner using automated processes, where agencies, a direct relationship exists between the house or external sales teams, using we have buyer and media owner in the form of insertion orders and manual pre-existing deal terms (e.g. exclusive made minor processes to book and run the access and price floors) campaign refinements Channel to our Networks Programmatic indirect (e.g. classificatio open RTB exchanges) n, which Inventory bought at fixed prices from a affects Indirect third-party offering packages which Inventory bought on an impression-by- comparabilit aggregate supply across multiple impression basis in real-time through y with 2013 media owners an open, unreserved auction data Programmatic Traditional Technique SOURCE: IAB Media Owner Sales Techniques 2014
Programmatic trading grew rapidly in 2014, accounting for 45% of total UK online display advertising Online video £0.28bn Mobile display and video Mobile display £0.47bn and video £0.86bn* 45% programmatic Desktop display £1.14bn Desktop display £1.0bn* * - Display affiliate advertising is excluded from the totals SOURCE: IAB Media Owner Sales Techniques 2014
Overall, direct sales still account for 49% of the market – programmatic direct has grown strongly to 24% Online video Direct sales Programmatic direct (e.g. £0.28bn private marketplaces) Mobile display -2% +9% and video Mobile display 49% 24% £0.47bn and video £0.86bn Networks Programmatic indirect (e.g. open RTB exchanges) Desktop display -15% +8% £1.14bn 21% 6% Desktop display £1.0bn +2% = percentage point change SOURCE: IAB Media Owner Sales Techniques 2014
Programmatic is expected to grow rapidly, accounting for 70-80% of display ad spend in 2018 2018 100% Ceiling on growth? 80- 90% Mobile 90% 80% 70- • Formats sold only Vide 80% direct (e.g. 70% o 60- Desktop sponsorship) account 70% 60% for 5% of display ad 70- Total 50% spend 80% display 40% • 30% Some high end premium publishers 20% prefer a direct sales 10% model 0% 2013 2014 2015 2016 2017 2018 SOURCE: IAB Media Owner Sales Techniques 2014
Polish programmatic market Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group
90% of respondents invest in programmatic What portion of your display expenditures goes to programmatic ? 80-100% 61-80% 41-60% 21-40% 1-20% 0% 0% 10% 20% 30% 40% 50% 60% Base: Polish respondents: 92 Source: IAB Europe_Attitudes towards Programmatic Advertising
3-digit growth of programmatic display Poland: Share of programmatic display 13.1% 14.0% 12.0% 10.0% 6.9% 8.0% 6.0% 3.5% 4.0% 2.0% 0.0% 2013 2014 2015 Source: Estimates of Polish IAB Programmatic group
Mobile is growing fast 2014 2015 12% 18% 82% 88% Mobile Desktop Mobile Desktop Source: Estimates of Polish IAB Programmatic group and Adform DSP
Italian programmatic market Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy
Programmatic Advertising in Italy: the 5th driver for market growth since 2014 Internet Advertising Investments in Italy 2014 vs 2013: 5 drivers of growth Search Video Mobile Social Programmatic 290 m € 665 m € 300 m € 170 m € 110 m € + 14% + 25% + 50% + 70% + 120% Must have Multi screen, Social behaviour, Tech driven change Audience shifting millennial generation time spent Performance first Efficiency for branding Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano
Programmatic in Italy: a breakthrough development in ‘13/’14 Total Internet Advertising Market size in 2014: 2bn € Share of Internet Adv on Total Adv ≅ 25% 150 Mln € 110 m € 120 +120% 90 50 60 m € >+1000% 30 <5 m € Not existing 0 2011 2012 2013 2014 <1% out of Display 5% out of Display 10% out of Display Advertising Advertising Advertising Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano Display = Banner + Video + Social
Programmatic in Italy: Open Market & Performance at the origin Display Programmatic Private market 10% (110 m € ) (banner, video, 15-25% social; web & mobile) 56% 2014 Internet Adv. market size 2 bn € Non Other Open market (≈25% on total programmatic 44% 85-75% adv spending) 90% Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano
≈ 220 Programmatic in Italy: what’s going on in 2015? m € ≈+100 % 150 110 m € Mln € 120 90 +120% 50 60 m € <5 30 m € Not existing 0 2011 2012 2013 2014 2015* 18% out of Display 10% out of Display Advertising Advertising Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano *market research as of Nov. 2015, investments until Oct. 2015 + EoY estimation Display = Banner + Video + Social
Programmatic in Italy – actual picture HIGHLIGHTS LOWLIGHTS , space for improving • • Programmatic Adv doubling for the last 3 years; its Still lack of transparency by some trading desks weight on the total display adv has become relevant (value chain, adspaces) • • Programmatic VIDEO is nowadays growing more Data driven adv has not been applied as a major than banner; Video is expected to considerably added value on top of media trading tecniques grow in 2016, cacthing budget from TV spending • Viewability brings concern towards programmatic, • Since 2015, programmatic has been adopted to despite the fact major publishers made significant reach goals also for branding steps to improve quality of their spaces • • Demand side is now offering premium inventory, Viewability measurement needs stronger standards going beyond unsold and low cost adspaces and a more distributed usage of measurement tools • • Big and small agencies are all active on progr., Tecnological transformation coming from allthough there’s a lack of human resources programmatic solutions sometimes clashes in front of language and cultural barriers, typically less • Data driven adv started to be adopted by top strong among young generations advertisers, also leveraging internal DMPs
Recommend
More recommend
