The document discusses the growth and trends of programmatic advertising in Europe, indicating a €16.8 billion market in 2018. Programmatic transactions have shifted from traditional models to automated processes, now accounting for a significant portion of digital ad spend, particularly in video. The Central and Eastern European regions are noted as having an advantageous position, benefiting from rapid growth and increased market share.

1. Programmatic ad spend
in Europe 2018
September 2019

2. WHAT IS PROGRAMMATIC: DIFFERENT SCHOOLS
OF THOUGHT DEPENDING ON COUNTRY &
COMPANY
• Automated process of buying and selling advertising inventory through
software, data, and algorithms. Programmatic can refer to the automation
of workflows associated with buying and selling, as well as the transactions
themselves. Transactions are either based on fixed prices, or on auction-
based models.
• Ad Spend transacted via the Open RTB protocol.

3. PROGRAMMATIC IN EUROPE IS A €16.8BN MARKET
2,234
3,831
6,522
9,306
12,589
16,781
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2013 2014 2015 2016 2017 2018
Total programmatic (incl. social)

4. PROGRAMMATIC IS THE NEW ‘DIGITAL’ - AN UNNECESSARY PREFIX
72.1%
27.9%
2018
programmatic non-programmatic
20.0%
80.0%
2013
programmatic non-programmatic
Share of Digital Ad Spend in Europe by
Transaction Mechanism

5. EUROPE HAS BEEN A PROGRAMMATIC-FIRST DIGITAL AD MARKET
SINCE 2016
2,234
3,831
6,522
9,306
12,589
16,781
8,943
9,045
8,568
7,913
7,206
6,480
0
5,000
10,000
15,000
20,000
25,000
2013 2014 2015 2016 2017 2018
Europe: Digital Ad Spend by Transaction Mechanism
total programmatic total traditional
Inflection point

6. PROGRAMMATIC CONTINUES TO GROW DOUBLE-DIGIT DESPITE MARKET
MATURITY
71.5%
70.3%
42.7%
35.3%
33.3%
1.1%
-5.3%
-7.7%
-8.9%
-10.1%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2014 2015 2016 2017 2018
Europe: Digital Ad Spend YoY Growth
programmatic non-programmatic

7. APPLYING A NARROWER DEFINITION : SOCIAL DOUBLE THE SIZE OF
PROGRAMMATIC TRANSACTED VIA OPEN RTB STANDARD
4,325
5,477
8,264
11,305
12,589
16,781
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2017 2018
Europe: Programmatic Ad Spend (EURm)
total programmatic (excl. social) social as programmatic total programmatic (incl. social)

8. A NARROWER DEFINITION: GROWTH COMES FROM PROGRAMMATIC,
NOW HALF OF DISPLAY
4,325
5,477
6,037
5,389
0
2,000
4,000
6,000
8,000
10,000
12,000
2017 2018
Europe: Programmatic Ad Spend excl. social
(EURm)
programmatic non-programmatic
42%
58%
2017
programmatic non-programmatic
50%50%
2018
Note: Total adjusted by removing affiliate, email newsletter to provide relevant display subset against which to benchmark ‘programmatic’.
-10.4%
26.6%

9. MORE THAN HALF OF ALL VIDEO SPEND IS PROGRAMMATIC
9.4%
13.7%
19.9%
34.9%
48.2%
54.4%
0%
10%
20%
30%
40%
50%
60%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2013 2014 2015 2016 2017 2018
Europe: Digital Video Ad Spend by Transaction Model (EURm)
programmatic video other video share programmatic video
Note: includes in-stream, out-stream and in-feed video

10. ¼ OF ALL PROGRAMMATIC SPEND IS VIDEO
92.4% 91.0% 89.7%
81.6% 77.7% 75.2%
7.6% 9.0% 10.3%
18.4% 22.3% 24.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018
Programmatic in Europe: video vs other formats
non-video video

11. PROGRAMMATIC VIDEO GROWS FASTEST, BUT VIDEO OUTSIDE PROGRAMMATIC IS
ACCELERATING
71.5%
70.3%
42.7%
35.3%
33.3%
1.1%
-5.3%
-7.7%
-8.9%
-10.1%
102.2%
101.1%
118.7%
86.4%
47.6%
32.9%
28.1%
1.4%
7.2%
15.2%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
2014 2015 2016 2017 2018
Europe: Digital Ad Spend Growth by Format & Transaction Model
programmatic non-programmatic programmatic video other video

12. CEE REGION IS ENJOYING 2ND MOVER ADVANTAGE, OUTPERFORMING GROWTH AND
CLAWING SHARE
94.5% 93.5% 92.0% 90.5% 89.2% 87.5%
5.5% 6.5% 8.0% 9.5% 10.8% 12.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018
Europe: Share of Programmatic Ad Spend by Region
WE CEE

13. CONTACT
Marie-Clare Puffett
Marketing & Business Programmes Manager
puffett@iabeurop.eu
iabeurope.eu
@iabeurope
/iab-europe