1. IAB Europe Programmatic
Market Sizing
IAB Europe and IHS Technology, September 2014

2. Online will become biggest advertising
medium by 2018
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Europe: Net advertising revenue by medium (€m)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TV Newspapers Magazines Radio OOH Cinema Online
Source: IHS
©IHS 2014

3. Online growth is fuelled by video, mobile,
and tech
6.9%
38.3%
37.9%
32.8%
82.0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Video programmatic
Video (all)
Mobile display
Display programmatic
Display (all)
CAGR in European Big 5*: 2012-2018
Source: IHS
©IHS 2014

4. Online advertising revenue generated through
programmatic mechanisms exceeded €2bn in
2013
Europe: programmatic online advertising revenue (€m)
+111%
33.2 1,932.2
951.2
2,500
2,000
1,500
1,000
500
Source: IHS/IAB Europe Programmatic Sizing Initiative
©IHS 2014
147.0
0
2012 2013
Western Europe Central and Eastern Europe
2,079.2
984.5

5. Display Programmatic in Europe
Europe: online display advertising
revenue by mechanism (%)
11.9%
21.3%
88.1%
78.7%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013
Programmatic Non-programmatic
Western Europe 2013
76.4%
23.6%
Non-Programmatic Programmatic
Central & Eastern Europe 2013
90.5%
9.5%
Source: IHS/IAB Europe Programmatic Sizing Initiative
©IHS 2014

6. 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[1], ‘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 recognized 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.
[1] http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_Sept_2013.pdf
Presentation name | 6

7. Contact:
Alison Fennah, IAB Europe – fennah@iabeurope.eu
Daniel Knapp, IHS Technology – daniel.knapp@ihs.com
Connect with us:
@IABEurope
IAB Europe
www.iabeurope.eu