IAB Europe press release
Research extends to include programmatic mobile and video both showing triple digit growth
Cologne, 16 September 2014 – At dmexco 2015 today, IAB Europe announced that the total programmatic display advertising market in Europe jumped 70.5% from €2.14bn in 2013 to €3.65bn in 2014. This year for the first time programmatic mobile and programmatic video figures are broken out. Programmatic mobile advertising revenue grew 240% to €552m in 2014 from €230m in 2013, now representing 27.3% of the mobile display market. Programmatic video advertising grew 176% to €205m from €76m, representing 12.1% of the online video market. Programmatic desktop display is valued at €2.9bn.
The European Programmatic Market Sizing research is produced by IAB Europe and IHS, taking a holistic approach to aggregating the data to ensure all stakeholder perspectives were included. The numbers are based on ad spend reported by IABs, transactional data, statistical and econometric models to infer a European market size and knowledge from industry experts. This programmatic research will complement the IAB Europe AdEx Benchmark report, the definitive guide to the state of the European online advertising market. This year the research has been further developed to include programmatic mobile and video.
Townsend Feehan, CEO of IAB Europe said “This extended research on the programmatic market increases the insight IAB Europe offers to stakeholders seeking to better understand the new trends in this young and innovative sector and to businesses seeking to benchmark their own strategies and success”.
Daniel Knapp, Senior Director of Advertising Research at IHS and author of the research, said “We are delighted to be able to extend our research co-operation on
programmatic with IAB Europe to include a definitive market view on programmatic mobile and programmatic video”.
Graham Wylie, Chairman of the IAB Europe Programmatic Trading Committee and Senior Director EMEA & APAC Marketing at AppNexus said “Programmatic remains a priority topic for both buy and sell-side of the industry and IAB Europe’s research and education in coordination with national IABs is of huge value to the market. The new figures help to define the market landscape and help to define future direction”.
IAB Europe’s Programmatic Trading Committee initiatives include the first pan- European Programmatic Trading White Paper, the more recent Road to Programmatic White Paper together with a pan-European Attitudes to Programmatic Advertising report and a webinar series.
This study defines programmatic as:
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, ‘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 recognised 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.