Insights from the latest IAB Europe Attitudes to Programmatic Advertising and European Programmatic Market Sizing reports, the industry benchmarks on the development of programmatic in Europe will be shared to reveal the latest buy-side and sell-side drivers, barriers and strategies and the size and growth of the market.

1. Programmatic Advertising
in Europe: latest trends,
attitudes and growth drivers
Benjamin Hancock
Global Head of Programmatic Trading and IAB
Europe Programmatic Trading Committee member
11 October 2018
@iabeurope

2. EUROPEAN
PROGRAMMATIC
MARKET SIZING
@iabeurope

3. Programmatic is an aggregate category that is composed of four discrete transactional
models, each of which we consider a sub-set:
1. Automated Guaranteed
2. Unreserved Fixed Rate
3. Invitation-Only Auction
4. Open Auction
@iabeurope
Defining programmatic

4. Market coverage
Source: IAB Europe & IHS Markit
• Austria
• Belgium
• Belarus
• Bulgaria
• Czech Republic
• Croatia
• Denmark
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Netherlands
• Norway
• Poland
• Russia
• Romania
• Serbia
• Slovakia
• Slovenia
• Spain
• Sweden
• Switzerland
• Turkey
• UK
@iabeurope

5. 2 263
3 881
6 607
9 426
11 984
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2013 2014 2015 2016 2017
Europe: Programmatic Ad Spend (€m)
European programmatic advertising is a €12bn market
Source: IAB Europe & IHS Markit
@iabeurope

6. Growth still double-digit but slowing as programmatic rapidly
matures
Source: IAB Europe & IHS Markit
71,5% 70,3%
42,7%
27,1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2013 2014 2015 2016 2017
Europe: Programmatic Ad Spend YoY Growth
@iabeurope

7. Traditional vs programmatic ad spend
Source: IAB Europe & IHS Markit
20,7%
30,8%
44,8%
56,0%
62,0%
79,3%
69,2%
55,2%
44,0%
38,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017
Europe: Digital Ad Spend by Transaction Mechanism
programmatic traditional
@iabeurope

8. Programmatic direct attracts the most programmatic spend
Source: IAB Europe & IHS Markit
8,0%
13,8%
22,3%
28,9% 33,0%12,7%
17,0%
22,5%
27,1%
28,9%
79,3%
69,2%
55,2%
44,0%
38,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017
Europe: Digital Ad Spend by Transaction Mechanism - Detail
programmatic direct programmatic indirect non-programmatic
@iabeurope

9. Programmatic drives the video ad market in Europe, which is
now programmatic-first
Source: IAB Europe & IHS Markit
236 477
931
2 374
3 907
1 392
1 793
2 204
1 536
1 365
0
1 000
2 000
3 000
4 000
5 000
6 000
2013 2014 2015 2016 2017
Video: Programmatic vs Traditional Ad Spend (€m)
video programmatic video traditional
@iabeurope

10. 1/3 of programmatic ad spend is video
Source: IAB Europe & IHS Markit
10,4%
89,6%
2013
video non-video
32,6%
67,4%
2017
video non-video
@iabeurope

11. Programmatic video is a €4bn market, growing 4.5x
faster than banner in 2017
Source: IAB Europe & IHS Markit
102,2%
95,3%
155,1%
64,6%67,9% 66,8%
24,2%
14,5%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
2014 2015 2016 2017
YoY Growth in Programmatic: Video vs
Banner
video banner
236 477 931
2 374
3 907
2 027
3 404
5 676
7 052
8 077
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2013 2014 2015 2016 2017
Programmatic Spend: Video vs Banner
video banner
@iabeurope

12. Programmatic dominates the mobile ad market
Source: IAB Europe & IHS Markit
281 754
2 355
4 422
6 776
1 075
1 582
1 405
1 343
1 356
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
2013 2014 2015 2016 2017
Mobile: programmatic vs traditional ad spend(€m)
mobile programmatic mobile traditional
@iabeurope

13. Rapid change: more than half of programmatic
spend is now mobile
Source: IAB Europe & IHS Markit
12,4%
87,6%
2013
mobile desktop
56,5%
43,5%
2017
mobile desktop
@iabeurope

14. €6.7bn of programmatic spend is mobile, desktop
growth nearly flat
Source: IAB Europe & IHS Markit
168,9%
212,2%
87,8%
53,2%57,7%
36,0%
17,7%
4,1%0%
50%
100%
150%
200%
250%
2014 2015 2016 2017
YoY growth in programmatic: mobile vs
desktop
mobile desktop
281 754
2 355
4 422
6 776
1 982
3 126
4 252
5 004
5 208
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2013 2014 2015 2016 2017
Programmatic spend: mobile vs desktop
mobile desktop
@iabeurope

15. Programmatic trends between Western and Central &
Eastern Europe
Source: IAB Europe & IHS Markit
94,5% 92,5% 93,0% 92,5% 90,2%
5,5% 7,5% 7,0% 7,5% 9,8%
0%
20%
40%
60%
80%
100%
2013 2014 2015 2016 2017
Share of programmatic by region
WE CEE
24,0%
65,0%
0%
20%
40%
60%
80%
100%
120%
140%
2014 2015 2016 2017
Growth of programmatic by region
WE CEE
@iabeurope

16. ATTITUDES TO
PROGRAMMATIC
ADVERTISING
@iabeurope

17. AREWEATA
TURNINGPOINT?@iabeurope
Marketing Week, Sept 2017
Digiday, Jan 2018
AdWeek, Feb 2018
Econsultancy, Oct 2016

18. Supply chain transparency
• Advertisers – 35%
• Agencies – 56%
• Publishers - 41%
Increased / granular control of media
• Advertisers – 24%
• Agencies – 50%
• Publishers - 34%
Brand safety
• Advertisers – 24%
• Agencies – 49%
Fraud
• Advertisers – 30%
• Agencies – 32%
Hiring people with the right skill set
• Advertisers – 32%
• Agencies – 29%
• Publishers - 46%
@iabeurope
AREWEATA
TURNINGPOINT?

19. 0%
9% 9%
14%
46%
23%
0%
3%
8%
16%
35%
38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Utilisation of a
consultancy
Outsourced to an
independent
trading desk
Outsourced to a
DSP
Hybrid model
(more than one of
the above)
Outsourced to an
agency
In-house
operations
2017 2018
EVOLUTIONOF
PARTNERSHIPS
Advertisers
@iabeurope

20. 9%
12%
26%
54%
6%
9%
24%
62%
0%
10%
20%
30%
40%
50%
60%
70%
Outsourced to an
independent trading desk
Outsourced to a DSP Hybrid model (more than
one of the above)
In-house agency trading
desk
2017 2018
Agencies
@iabeurope
EVOLUTIONOF
PARTNERSHIPS

21. 8% 8%
40%
44%
9%
13%
29%
50%
0%
10%
20%
30%
40%
50%
60%
Outsourced to a third-party
network
Outsourced to an SSP Hybrid model (more than
one of the above)
In-house operations
2017 2018
Publishers
EVOLUTIONOF
PARTNERSHIPS@iabeurope

22. Advertisers Agencies Publishers
Gain greater transparency
on where campaigns run
56%
Increase operational
control
75%
Better monetisation of
inventory
81%
Reduce agency costs 56%
Better ability to access
audience insight
54%
Benefit from a more
efficient sales and ad
operations process
52%
Keep first party data under
control
44%
Better understanding
of the consumer
pathway
46%
Better integration of
audience data into
trading processes
43%
DRIVENBY…@iabeurope

23. METRICSCONTINUE
TOEVOLVE
Advertisers Agencies Publishers
Sales KPIs 48% Sales KPIs 63% Cost per mille (CPM) 48%
Brand awareness 29% Targeting accuracy 38% Brand awareness 32%
Purchase intent / Cost per mille
(CPM) / Viewability
26% Reach and frequency 27% Sales KPIs / Viewability 29%
@iabeurope

24. DATA,DATA,DATA…
79%
84%
81%
70%
82%
84%
72%
79%
73%
43%
50%
42%
48%
53%
66%
27%
31%
27%
44%
69%
52%
69%
77%
87%
40%
46% 45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018 2016 2017 2018 2016 2017 2018
Advertiser Agency Publisher
First party data Second party data Third party data
Type of audience data used
@iabeurope

25. THEFUTURE…
90%+
of advertisers, agencies and
publishers expect their
programmatic investment
to increase over the next 12
months.
@iabeurope

26. REGISTER AT IABEUROPE.EU

27. CONTACT
ABOUT IAB EUROPE
IAB Europe is the leading European-level industry association for the digital
advertising ecosystem. Its mission is to promote the development of this innovative
sector and ensure its sustainability by shaping the regulatory environment,
demonstrating the value digital advertising brings to Europe’s economy, to consumers
and to the market, and developing and facilitating the uptake of harmonised business
practices that take account of changing user expectations and enable digital brand
advertising to scale in Europe.
www.iabeurope.eu
@iabeurope
Marie-Clare Puffett
puffett@iabeurope.eu
/iab-europe
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