LONDON – September 9, 2015 – SpotX, the video inventory management platform for publishers, today announces research into the growth of programmatic online video advertising across Europe, predicting dramatic growth across Europe to become a €2bn industry in 2020. Programmatic online video advertising has grown almost twenty-fold from €22m in 2012 to €375m in 2015 and will grow at a rate of 38.7 per cent between now and 2020, when more than half of all online video advertising revenue in Europe will be generated programmatically.
Conducted by IHS, the global analyst firm (NYSE: IHS) and research partner for IAB Europe, and compiled from in-depth interviews with both advertising agencies and publishers, combined with the IHS advertising trends and forecasting database, the study reveals the UK as the largest market for programmatic video advertising in Europe, currently generating more than one third of all programmatic online video revenue in Europe in 2015 (36.1 per cent).
IHS identifies 23 per cent of online video advertising in the UK as traded programmatically in 2015, compared with 34 per cent in the Netherlands and 19 per cent in France. This is predicted to grow substantially, to 63 per cent in the Netherlands, followed by 60 per cent in the UK and 54 per cent in France in 2020. The UK programmatic video advertising market is worth €135m now, and is expected to grow to €602m by 2020. Revenue in France is expected to rise to €358m followed by Italy, which still shows a lot of potential, and will grow to €245m. Overall in 2015, the ‘big five’ European markets represent €286m of programmatic online video advertising revenue now, which will grow to €1,512m by 2020, whilst the Nordics represent just €21m in revenue, but will grow dramatically to reach €138m in 2020.
The report sizes the programmatic video advertising market in Germany at €31m, with growth expected to reach €254m in 2020, making it the third largest market in Europe.
Commenting on the research, Mike Shehan, CEO of SpotX explains, “We introduced video real time bidding (RTB) in 2010 and launched our European operations four years ago. Since then we have seen rapid adoption from publishers and broadcasters throughout the region and increasing demand from advertisers and their agencies. These findings reflect the growth of our business, with revenues rising 90 per cent year-on-year in 1H 2015. As a result, we have invested heavily into Europe over the past year, appointing three new Managing Directors, and recruiting more staff.”
Daniel Knapp, Senior Director of Advertising Research, IHS, adds, “We first analysed the programmatic video advertising market in 2013 and could see it was set to explode across Europe. Our new analysis reveals the extent of the growth trajectory for online video advertising, with programmatic video advertising growing rapidly and taking an ever increasing share.”
“The growth is particularly fast in the UK where technological literacy, a volume of programmatic players and a lot of premium inventory means that the UK will lead the development in Europe to a diversified portfolio of programmatic transaction types. We expect the UK to slowly close the gap to the US, where programmatic video will exceed 60 per cent of the video market by 2019, compared to 2020 in the UK.”
Knapp concludes, “In the UK we have seen strong initiatives from some broadcasters building a data and programmatic business. The majority of growth in the next five years will come from broadcasters’ video catch-up inventory moving to programmatic trading.”
The research report follows a rebrand from SpotX last week, where the company shortened its name to highlight its evolution from an ad exchange to a holistic inventory management platform, developed specifically for the supply side. The SpotX platform today incorporates an ad server, Supply Side Platform, and programmatic infrastructure including both open and private marketplace capabilities to help publishers manage all aspects of their video ad inventory across desktop, mobile and connected devices.
The research, ‘Video Advertising in Europe: The Road to Programmatic Ubiquity’ builds on a similar study commissioned by SpotX in 2013 titled ‘Video Goes Programmatic: Forecasting the European Online Video Advertising Landscape.’
The full report from IHS can be downloaded here
IHS conducted in-depth 35 interviews with media owners, sales houses, agencies, technology intermediaries, advertisers and industry organisations and combined this with the proprietary IHS advertising market database across all media which includes media buyer and seller sentiment indices, market size and growth trends. Additional quantitative and qualitative inputs from 3rd party data were harmonised and aggregated in the IHS econometric advertising forecasting models to produce an outlook to 2020.
SpotX is a video inventory management platform for premium publishers and broadcasters, helping them manage all of their demand sources from one place, and monetise content across all screens. The SpotX platform offers publishers unprecedented transparency and insight, creating a safe, controlled environment that allows them to connect with advertisers, and achieve the highest revenue possible.
Premium publishers and mobile app developers trust SpotX as the independent solution that helps them better understand the buying behaviour of today’s leading brands and maximise inventory yield across private marketplace, programmatic direct and open marketplace deals. SpotX’s ad serving, leading programmatic technology, and open and extensible architecture help simplify the complex digital video ecosystem for global publishers.
Headquartered in Denver, Colorado, SpotX also has offices in New York, San Francisco, London, Sydney, Amsterdam, Hamburg, Belfast and Singapore. In July 2014, RTL Group acquired a 65 per cent stake in SpotX, which was founded by CEO Mike Shehan and CFO and COO, Steven Swoboda, in 2007. For updates, please follow SpotX @SpotXchange or visit www.spotxchange.com.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.
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