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

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

ContactAlison Fennah, IAB Europe – fennah@iabeurope.eu

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

@IABEurope

IAB Europe

www.iabeurope.eu

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