Programmatic video advertising to grow tenfold in Europe by 2017
SpotXchange has announced a new study into the adoption of programmatic video advertising across the five largest advertising markets in Europe.
Conducted by HIS, the report has forecast that the European programmatic video market will grow by an average 77.1% year on year between 2012 and 2017 to reach €626.5 million across the UK, France, Spain, Germany and Italy.
‘Video goes programmatic: Forecasting the European online video advertising landscape’ is compiled from extensive research through interviews with both advertising agencies and publishers in these markets, and analyses trends and growth in the region.
IHS predicts that the market will mature quickly, and that by 2017, one third of all European online video advertising revenue will be generated programmatically, up from 4.6% in 2012.
The UK was the most advanced of the ‘Big Five’ in 2012 and is expected to remain the largest programmatic market through 2017, closely followed by France.
The value of the video programmatic market in the UK in 2012, which is dominated by international players, was €20.5 million and is predicted to rise to €224.5 million by 2017.
In 2012, 9% of all online video revenue was traded programmatically and by 2017 this figure will rise to 38.9%
The French market was €5.5 million in 2012 and is expected to rise to €160 million by 2017, while the German market is expected to rise by almost €90 million to €92.3 million in that same period.
The report predicts that Spain’s market will grow to almost €89 million, and Italy’s market to just over €63 million.
Andrew Moore, European managing director of SpotXchange said that the study confirms that while the online video industry has been growing exponentially across Europe, each country is at a different stage of adoption and capability.
Daniel Knapp, director of advertising Research, IHS, added: “Online video advertising is growing rapidly. As the format comes of age, advertiser expectations around measurability, targeting and return-on-investment are becoming more sophisticated in order to justify increased investments.”
Knapp explained that programmatic buying offers publishers the opportunity to ‘future-proof’ their online video offering alongside these expectations, and that the study shows that programmatic buying will be a core driver of online video in Europe over the next five years.
“But as the programmatic video landscape is developing, it will not converge into a one-size-fits-all solution,” said Knapp. “Different legacy market structures, the availability of data, and ultimately marketing cultures mean that adoption in Europe will vary by country and by publisher, both in terms of pace and form.”