Research from digital video advertising inventory marketplace supplier SpotXchange has calculated that the European programmatic video market will grow spectacularly over the next five years.
The analysis — carried out by IHS and claimed to be the first ever study of programmatic video advertising across the UK, France, Spain, Germany and Italy — found found that the market will grow on average 77.1% a year from 2012 to 2017, reaching €626.5 million across Europe’s ‘Big Five’ markets. By 2017 a third of all European online video advertising revenue will likely be generated programmatically, up from 4.6% in 2012.
Even though SpotXchange found that scarcity of inventory limits current market size, demand for programmatic video is increasing rapidly as it moves from being a tactical tool to a strategic component of media plans. Yet the report also found that Europe’s agencies and advertisers are driving the demand for video inventory to be available for programmatic trading, but successes such as monetising international audiences and co-ownership of ad-tech infrastructure trigger publisher-driven innovation.
The study data found that the UK was the most advanced programmatic video market in Europe in terms of revenue and maturity of ecosystem in 2012 and will remain the largest programmatic market through 2017, closely followed by France.
The value of the video programmatic market in the UK in 2012 was €20.5 million and is predicted to rise to €224.5 million by 2017. By contrast, the value of the video programmatic market in France in 2012 was €5.5 million and is predicted to rise to €157.9 million by 2017. In the UK in 2012, 9% of all online video revenue was traded programmatically, and by 2017 this figure will likely rise to 38.9%.
“Online video advertising is growing rapidly. As the format comes of age, advertiser expectations around measurability, targeting and ROI are becoming more sophisticated in order to justify increased investments,” explained Daniel Knapp, director of advertising research, IHS.
“Programmatic buying offers publishers the opportunity to future-proof their online video offering alongside these expectations … programmatic buying will be a core driver of online video in Europe over the next five years, growing on average 77% a year in terms of revenues. But as the programmatic video landscape is developing, it will not converge into a one-size-fits-all solution. 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.”
“This 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,” added Andrew Moore, European managing director of SpotXchange.
Read more: Programmatic video advertising to grow tenfold between 2012 and 2015 | Rapid TV News http://www.rapidtvnews.com/index.php/2013090529565/programmatic-video-advertising-to-grow-tenfold-between-2012-and-2015.html#ixzz2eAKD6GIW