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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
0
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
0
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
0
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
0
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
0
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
13intermediar
y interviews
14media
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
TechniqueTraditional 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
owner 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.
open 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.
open 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
o
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
model0%
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 generationAudience 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
0
30
60
90
120
150
2011 2012 2013 2014
Mln €
<5 m€
50m€
>+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)
0
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€
50m€
≈ 220
m€
+120%
10% out of Display
Advertising
Display = Banner + Video + Social
Not existing
18% out of Display
Advertising
110m€
≈+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
of 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
Next steps:
Watch the webinar recording – contact Marie-Clare ([email protected]) 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
ContactAlison Fennah, IAB Europe – [email protected]
Marie-Clare Puffett, IAB Europe – [email protected]
@IABEurope
IAB Europe
www.iabeurope.eu
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