The following report provides further insight into the sell-side (publishers) attitudes and current adoption of programmatic advertising following the full report publication. The additional data in this report includes a breakdown of advertiser and agency respondents by regions as listed below: Central and Eastern Europe: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey Northern Europe: Norway, Sweden, Denmark, Finland Southern Europe: Spain, Italy, Portugal , Greece Western Europe: UK, France, Germany, Belgium, Switzerland, Netherlands, Austria, Ireland

1. x
Attitudes towards
Programmatic
Advertising
October 2016
A deep dive into sell-side attitudes and adoption

2. x
CONTENT
Introduction
Summary
Programmatic is mainstream
Drivers, Barriers and Business Impacts
Current Adoption and Strategies
Measurement and Data Strategy
Future of Programmatic
Contact

3. The following report provides further insight into the sell-side (publishers) attitudes and current
adoption of programmatic advertising following the full report publication. The additional data in this
report includes a breakdown of publisher respondents by regions as listed below:
Central and Eastern Europe: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Russia,
Serbia, Slovakia, Slovenia, Turkey
Northern Europe: Norway, Sweden, Denmark, Finland
Southern Europe: Spain, Italy, Portugal , Greece
Western Europe: UK, France, Germany, Belgium, Switzerland, Netherlands, Austria, Ireland
INTRODUCTION

4. x
Programmatic is mainstream – vast majority of sell-side stakeholders are investing in
programmatic
Programmatic is increasingly seen as a strategic component of media planning and not longer
just a place for remnant inventory
Programmatic strategies evolve as market mature and sell-side stakeholders are
experimenting with hybrid and in-house models
Sell-side stakeholders view skills, training and technology as a key barriers to programmatic
investment
The future of programmatic looks bright – the majority of sell-side stakeholders plan to
increase their investment over the next 12 months
SUMMARY

5. PROGRAMMATIC IS MAINSTREAM

6. PROGRAMMATIC IS MAINSTREAM
The survey highlights that programmatic is now mainstream –all sell-side stakeholders surveyed are
investing in digital and the vast majority (95%) are also deploying some form of programmatic
advertising.
Whilst almost everyone is investing in programmatic now the majority of buying and selling is still
manual. Almost three quarters of publishers state that more than 20% of this digital advertising is traded
via manual processes.

7. PUBLISHERS DOING PROGRAMMATIC
95%
5%
Total Europe
Not doing programmatic
Doing programmatic
95%
5%
Western Europe
79%
21%
Central & Eastern Europe
95%
5%
Northern Europe
87%
13%
Southern Europe

8. PROGRAMMATIC DRIVERS, BARRIERS AND BUSINESS
IMPACTS

9. CLIENT DEMAND KEY TO DRIVING SELL-SIDE
ADOPTION
Gaining efficiencies stood out as a key motivation for the industry to invest in programmatic in 2015; in
2016 publishers are driven by client demand and maximising their media value.
Mobile wasn’t factored highly in 2015, however almost a third of publishers are investing in programmatic
to deliver mobile audiences. Scaling premium inventory is also becoming a key driver as publishers
programmatic strategies develop.

10. PROGRAMMATIC DRIVERS - PUBLISHERS
54%
49%
37%
44% 44%
30%
15%
60%
28%
77%
41%
34%
45%
38%
30%
28%
45%
30%
40%
45%
35%
55% 55%
45%
5%
75%
30%
57%
55%
41% 41%
36%
28%
9%
66%
30%
20%
45%
35%
30%
20%
15%
20%
60%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Maximising media
value
Trading /
operational
effeiciencies
Change in data
strategy to
increase data
quality
Gain competitive
advantage
Make premium
inventory
available at scale
Deliveing
audiences via
programmatic
mobile
Increased
engagement via
programmatic
video
Client demand Increased
granular control of
inventory
Total CEE NE WE SE

11. 74%
of publishers in mature
programmatic markets
invest in programmatic
due to client demand
Publishers aim to please clients by developing programmatic
strategy. Whilst publishers enter programmatic with the
objective of maximising media value those in the more mature
programmatic markets feel the client demand more than the
monetisation driver (45% of publishers in markets new to
programmatic cited client demand as a key driver; 74% in
advanced markets; 77% of publishers in markets new to
programmatic cited maximising media value as a key driver, 54%
in advanced markets) and gaining competitive advantage is also
more important now than it was in 2015.
STRATEGIC DRIVERS ARE REALISED AS MARKETS MATURE

12. SUCCESS IN PROGRAMMATIC DEMANDS THE RIGHT
EXPERTISE
Skills and hiring people with the right skillset are still key barriers to investing in programmatic suggesting
that stakeholders have some way to go in finding people with the right skills and implementing training
programs.
Publishers are also concerned with technology and understanding the impact of programmatic on total
revenue.
Publishers in CEE are more concerned with selecting and setting up the right technology than any other
region and those in Northern Europe more concerned with understanding the impact of programmatic on
revenue.
More publishers in Western Europe perceive fraud as a barrier than other region.

13. KEY BARRIERS TO PROGRAMMATIC INVESTMENT -
PUBLISHERS
46%
40%
37%
18%
28%
40% 42%
23% 24% 24%
11%
20%
49%
36%
45%
19%
30%
49%
34%
26%
30% 28%
9%
21%
50%
25%
40%
10%
25%
30%
55%
5%
15%
25% 25%
15%
55%
49%
36%
11%
21%
38%
45%
23%
34%
26%
6%
17%
25%
45%
35%
40%
25%
35%
50%
15%
5%
10%
0%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Hiring people
with the right
skill set
Training
people
adequately
Cost of
technology
Cost of data Quality of data Selecting and
setting up the
right
technology
Having a clear
understanding
of the impact
of
programmatic
trading on
total revenue
Brand safety Fraud Viewability Creative
optimisation
Campaign
measurement
and reporting
Total CEE NE WE SE

14. REDUCTION OF MEDIA WASTAGE TRUMPS UNIT
COST REDUCTION AS A KEY BUSINESS IMPACT
In 2016 IAB Europe asked the respondents about the business impacts realised from programmatic for the
first time. Publishers cite increased trading efficiencies as the top impact whilst increased value and
control are also key impacts.
42%
42%
68%
Increased control of inventory
Increased media unit value (CPM)
Increased trading efficiencies

15. CURRENT ADOPTION & STRATEGIES

16. CLEAR EVOLUTION OF PUBLISHER PROGRAMMATIC
STRATYEGY AS MARKETS MATURE
The survey showed us that there is a clear evolution of publisher programmatic strategy as markets mature
They start out with a hybrid model or a third party network suggesting they are working out the best way to
develop their programmatic strategy. They then move to lean more heavily on their SSP but finally bring
the expertise in house or develop a hybrid model.
40% of publishers have an in-house operational model but almost as many have a hybrid model,
suggesting that not one strategy or model will prevail in the future.

17. CLEAR EVOLUTION OF PUBLISHER PROGRAMMATIC
STRATYEGY AS MARKETS MATURE
Outsourced to a third-
party network
Hybrid
Outsourced
to an SSP
In-house
Hybrid
Markets new to
programmatic
Advanced
programmatic
markets
New markets, 11%; Mid-
developments markets 8%;
Advanced markets 3%
New markets, 45%; Mid-
developments markets 29%;
Advanced markets 33%
New markets, 11%; Mid-
developments markets 27%;
Advanced markets 15%
New markets, 34%; Mid-
developments markets 35%;
Advanced markets 49%
New markets, 45%; Mid-
developments markets 29%;
Advanced markets 33%

18. OPERATIONAL MODELS - PUBLISHERS
10%
17%
40%
33%
11% 11%
34%
45%
0%
5%
60%
35%
9%
26%
40%
26%
5%
30%
25%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Outsourced to a third-party network Outsourced to an SSP In-house operations Hybrid model (more than one of the above)
Total CEE NE WE SE

19. IAB Europe wanted to understand whether those stakeholders who do not currently have an in-house
model are considering one and what were their reasons for doing so or not doing so.
Almost three quarters of publishers who do not currently have an in-house model are considering one,
with the top driver cited as monetisation of inventory; control, transparency and insight are also key
drivers.
More than half (55%) of all publishers have the budget required to develop an in-house strategy, however
less have the required budget than in 2015 (77%). This may be due to the realisation of the fact that it is
not easy nor is it a quick fix but a long-term investment.
OPERATIONAL MODELS ARE CHANGING

20. Programmatic across Europe is maturing as a route to purchase for the marketing industry
and is no longer where people go just to find low-cost inventory. The industry is waking
up to the powerful targeting, distribution and attribution tools that programmatic
technology can offer. With the integration of ever more sophisticated data management
platforms, premium inventory across mobile and video becoming ever more prevalent,
the real time ability to adapt and surface creative storytelling to specific audiences at
scale and now marketing mix modelling and multi-touch attribution technology being
able to map consumer purchase decisions across all on or offline marketing channels,
our conversations are increasing brand lead, and driving full digital activity. With AOL
being open to all demand channels, we see the same developments across both our
demand and supply tools.
Simon Halstead
Head of Demand Development, International, AOL

21. MEASUREMENT AND DATA STRATEGY

22. PROGRAMMATIC IS A KEY ELEMENT OF MEDIA
PLANNING
68%
of publishers use the same success metrics for programmatically traded
display campaigns as those traded non-programmatically
The majority of all stakeholders are using the same success metrics for programmatically traded display
campaigns as those traded non-programmatically suggesting it is now an integral element of media
planning.

23. BRAND AWARENESS CLOSES IN ON THE CLICK
IAB Europe asked about which advertising effectiveness metrics are used to evaluate programmatically
traded display campaigns for the first time in 2016. Whilst the results show that click on advertisement is
still widely used, brand awareness and purchase intent metrics follow closely behind suggesting
maturing measurement strategies.
Publishers in Southern European markets are more likely to use brand metrics than other European
regions.

24. KEY ADVERTISING METRICS - PUBLISHERS
18%
47%
23% 25%
29%
8%
4%
52%
14%
20%
6%
28%
6%
14%
34%
14%
9%
20%
2%
7%
64%
11%
7% 5%
27%
5%
17%
57%
21%
33%
40%
12%
0%
40%
12%
36%
5%
26%
10%
33%
67%
28%
44%
11%
0% 0%
67%
11%
17%
11%
6% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Advertising
recall
Brand
awareness
Brand
familiarity
Brand affinity Purchase intent Likelihood to
recommend
Becoming a fan
or follower
Click on
advertisement
Individuals’
interaction with
content or ads
(like / sharing /
commenting /
creating social
buzz)
Synergies of
multi-screening
Touch screen
metrics such as
pinch, swipe,
expand
Uplift in direct
site visits
Uplift in search
behaviours
Total CEE NE WE SE

25. FIRST PARTY DATA DOMINATES
The majority of all publishers are currently leveraging first party data for their programmatic campaigns.
They are also showing signs of maturing data strategies via data integration and on boarding of third
party data.

26. AUDIENCE DATA USED BY PUBLISHERS
6%
25%
31%
88%
5%
46%
34%
83%
33%
33%
11%
50%
19%
47%
26%
63%
14%
40%
27%
72%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
None
Third party data
Second party data
First party data
Total CEE SE WE NE

27. FUTURE OF PROGRAMMATIC

28. Advertisers
96%
INVESTMENT IN PROGRAMMATIC IS SET TO
CONTINUE TO INCREASE
Percentage of publishers that cite an increase in programmatic over the next 12 months
CEE – 96%
NE – 100%
WE – 93%
SE – 100%
Similar to last year programmatic trading revenues and investments are set to increase, regardless of
market or stakeholder type. There is little difference in optimism regarding the expected increase of
programmatic trading investments and revenues; over 90% of all stakeholders cite an increase in the next
12 months.

29. IAB Europe is the voice of digital business and
the leading European-level industry association
for the digital advertising ecosystem.

30. @iabeurope
/iab-europe
www.iabeurope.eu
For more information on the Attitudes to Programmatic
Advertising Research please contact Marie-Clare:
Puffett@iabeurope.eu
THANK YOU