European Programmatic Market webinar Monday 23rd November Good - - PowerPoint PPT Presentation

European Programmatic Market webinar

Monday 23rd November

Good afternoon and welcome to the Webinar, we will start shortly

• Introduction
• European Programmatic market – size and key trends – Eleni Marouli, Senior Analyst, IHS
• UK programmatic market – David Frew, Senior Programmes Manager, IAB UK
• Polish programmatic market – Artur Banach, CEO, Netsprint and member of IAB Poland

Programmatic working group

• Italian programmatic market – Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy

Panel discussion:

• Sally Silver, Chief Digital Officer, Amplifi (Dentsu Aegis Network)
• Simon Halstead, Head of Demand Development International, AOL
• Michael Greene, General Manager Supply Chain, AudienceScience

Today’s agenda and presenters

European Programmatic market – size and key trends

A €3bn programmatic market for desktop banner display

1,841 2,900 500 1,000 1,500 2,000 2,500 3,000 3,500 2013 2014

Europe: Programmatic Desktop Display NAR* (€m)

+57.6%

NAR = net advertising revenue; display data excl. mobile and video Source: IAB Europe and IHS

Mobile programmatic explodes

230 552 100 200 300 400 500 600

Progammatic Mobile Display NAR (€m)

+240.2%

NAR = net advertising revenue; display data excl. desktop and excl. video Source: IAB Europe and IHS

2013 2014

Programmatic video market more than doubles

74 205 50 100 150 200 250 2013 2014

Progammatic Video NAR (€m)*

NAR = net advertising revenue; desktop and mobile video

+176.6%

Source: IAB Europe and IHS

Within €3.65bn programmatic total, desktop display dominates

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014

Programmatic formats in context (€m)

Video Mobile Display Desktop Display Total: €3657m Total: €2145m

Source: IAB Europe and IHS

+70.5%

All formats now generate double-digit share of total revenue programmatically

25.7% 17.5% 6.1% 39.3% 27.3% 12.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Desktop Display Mobile Display Video

Share of format revenue that is generated programmatically

2013 2014

Source: IAB Europe and IHS

Western Europe has lion’s share, but Central & Eastern Europe surges

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014

Total programmatic NAR: regional trends

Central & Eastern Europe Western Europe

Source: IAB Europe and IHS

UK programmatic market David Frew, Senior Programmes Manager, IAB UK

A wide range of industry participants contributed to the research

31

survey respondent s

13

intermediar y interviews

14

media agency and expert interviews

SOURCE: IAB Media Owner Sales Techniques 2014

Our focus is on how media owners sell inventory – we have retained last year’s framework

Channel

Direct Indirect

Technique

Traditional Programmatic Direct sales

Inventory bought at fixed prices directly from media owners through in- house or external sales teams, using insertion orders and manual processes to book and run the campaign

Programmatic direct (e.g. private marketplaces)

Inventory bought from a particular media

• wner using automated processes, where

a direct relationship exists between the buyer and media owner in the form of pre-existing deal terms (e.g. exclusive access and price floors)

Networks

Inventory bought at fixed prices from a third-party offering packages which aggregate supply across multiple media owners

Programmatic indirect (e.g.

• pen RTB exchanges)

Inventory bought on an impression-by- impression basis in real-time through an open, unreserved auction

Following feedback from media agencies, we have made minor refinements to our classificatio n, which affects comparabilit y with 2013 data

SOURCE: IAB Media Owner Sales Techniques 2014

Programmatic trading grew rapidly in 2014, accounting for 45% of total UK online display advertising

45%

programmatic

Mobile display and video £0.47bn Desktop display £1.14bn Online video £0.28bn Mobile display and video £0.86bn* Desktop display £1.0bn*

* - Display affiliate advertising is excluded from the totals

SOURCE: IAB Media Owner Sales Techniques 2014

Overall, direct sales still account for 49% of the market –programmatic direct has grown strongly to 24%

49%

24%

6%

21%

Direct sales Programmatic direct (e.g. private marketplaces) Networks Programmatic indirect (e.g.

• pen RTB exchanges)

Mobile display and video £0.47bn Desktop display £1.14bn Online video £0.28bn Mobile display and video £0.86bn Desktop display £1.0bn

• 15%

+8% +2% = percentage point change

• 2%

+9%

SOURCE: IAB Media Owner Sales Techniques 2014

80- 90% 70- 80% 60- 70%

2018 Mobile Desktop Vide

• Total

display

70- 80%

Ceiling on growth?

• Formats sold only

direct (e.g. sponsorship) account for 5% of display ad spend

• Some high end

premium publishers prefer a direct sales model

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018

Programmatic is expected to grow rapidly, accounting for 70-80% of display ad spend in 2018

SOURCE: IAB Media Owner Sales Techniques 2014

Polish programmatic market Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group

90% of respondents invest in programmatic

0% 10% 20% 30% 40% 50% 60% 0% 1-20% 21-40% 41-60% 61-80% 80-100%

What portion of your display expenditures goes to programmatic?

Base: Polish respondents: 92 Source: IAB Europe_Attitudes towards Programmatic Advertising

3-digit growth of programmatic display

3.5% 6.9% 13.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2013 2014 2015

Poland: Share of programmatic display

Source: Estimates of Polish IAB Programmatic group

Mobile is growing fast

12% 88%

2014 Mobile Desktop

18% 82%

2015 Mobile Desktop

Source: Estimates of Polish IAB Programmatic group and Adform DSP

Italian programmatic market Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy

Multi screen, millennial generation Audience shifting Tech driven change Performance first Efficiency for branding

Search Video

300 m€ + 25%

Mobile

290 m€ + 50%

Social

170 m€ + 70%

Programmatic

665 m€ + 14% 110 m€ + 120% Social behaviour, time spent Must have Internet Advertising Investments in Italy 2014 vs 2013: 5 drivers of growth

Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano

Programmatic Advertising in Italy: the 5th driver for market growth since 2014

Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano

Programmatic in Italy: a breakthrough development in ‘13/’14

30 60 90 120 150

2011 2012 2013 2014

Mln €

<5

m€

50

m€

>+1000%

110

m€ +120%

<1% out of Display Advertising 5% out of Display Advertising 10% out of Display Advertising

Total Internet Advertising Market size in 2014: 2bn€ Share of Internet Adv on Total Adv ≅ 25% Display = Banner + Video + Social Not existing

Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano

Programmatic in Italy: Open Market & Performance at the origin

Private market 15-25% Open market 85-75% Programmatic 10% (110 m€) Non programmatic 90% Display (banner, video, social; web & mobile) 56% Other 44% 2014 Internet Adv. market size 2 bn€ (≈25% on total adv spending)

30 60 90 120 150

2011 2012 2013 2014 2015*

Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano *market research as of Nov. 2015, investments until Oct. 2015 + EoY estimation

Programmatic in Italy: what’s going on in 2015?

Mln €

<5

m€

50

m€

≈ 220 m€

+120%

10% out of Display Advertising

Display = Banner + Video + Social Not existing

18% out of Display Advertising

110

m€ ≈+100%

Programmatic in Italy – actual picture

HIGHLIGHTS

• Programmatic Adv doubling for the last 3 years; its

weight on the total display adv has become relevant

• Programmatic VIDEO is nowadays growing more

than banner; Video is expected to considerably grow in 2016, cacthing budget from TV spending

• Since 2015, programmatic has been adopted to

reach goals also for branding

• Demand side is now offering premium inventory,

going beyond unsold and low cost adspaces

• Big and small agencies are all active on progr.,

allthough there’s a lack of human resources

• Data driven adv started to be adopted by top

advertisers, also leveraging internal DMPs LOWLIGHTS, space for improving

• Still lack of transparency by some trading desks

(value chain, adspaces)

• Data driven adv has not been applied as a major

added value on top of media trading tecniques

• Viewability brings concern towards programmatic,

despite the fact major publishers made significant steps to improve quality of their spaces

• Viewability measurement needs stronger standards

and a more distributed usage of measurement tools

• Tecnological transformation coming from

programmatic solutions sometimes clashes in front

• f language and cultural barriers, typically less

strong among young generations

• Eleni Marouli, Senior Analyst, IHS
• David Frew, Senior Programmes Manager, IAB UK
• Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group
• Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy
• Sally Silver, Chief Digital Officer, Amplifi (Dentsu Aegis Network)
• Simon Halstead, Head of Demand Development International, AOL
• Michael Greene, General Manager Supply Chain, Audience Science

Panel discussion

Q&A

Please address any further questions and comments to Alison Fennah – fennah@iabeurope.eu

Next steps: Watch the webinar recording – contact Marie-Clare (puffett@iabeurope.eu) for the link Download the European Programmatic Market sizing report, Road to Programmatic White Paper and Attitudes towards Programmatic Advertising report from the IAB Europe website Survey at the end of this Webinar – please provide your feedback

Thank you for attending

Contact

Alison Fennah, IAB Europe – fennah@iabeurope.eu Marie-Clare Puffett, IAB Europe – puffett@iabeurope.eu

@IABEurope IAB Europe www.iabeurope.eu

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