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SpotX, the video inventory management platform for publishers, has unveiled an infographic charting the rise of programmatic online video advertising across Europe. The image shows how the industry has grown almost twenty-fold from €22 million in 2012 to €375 million in 2015 and will grow at a rate of 38.7 per cent between now and 2020, to become a €2 billion industry in 2020, by which time more than half of all online video advertising revenue in Europe will be generated programmatically.
The ‘big five’ European markets are highlighted as responsible for €286 million of programmatic online video advertising revenue generated in 2015, which is expected to climb to €1,512 million by 2020. The Benelux region is forecast to triple from €62 million in 2015 to €198 million in 2020, whilst Nordics saw €21 million programmatic online video advertising revenue in 2015, predicted to reach €138 million in 2020.
Based on research conducted by global analyst firm IHS, the infographic shows the UK as the largest market for programmatic video advertising in the region, generating more than one third of all programmatic online video revenue in Europe in 2015 (36 per cent). The UK programmatic video advertising market was worth €135 million in 2015 and is expected to be worth more than €600 million by 2020 with the proportion of video advertising traded programmatically expected to almost triple from 23 per cent in 2015 to 60 per cent by 2020.
Programmatic online video advertising is pictured as worth €31 million in Germany with growth expected to reach €254 million in 2020, making it the third largest market in Europe. The Austrian market is predicted to grow from €2 million in 2015 to €19 million in 2020 and Switzerland will grow from €3 million in 2015 to €22 million in 2020, revealing a compound annual growth rate (CAGR) across the DACH region of 53 per cent.
In France, the infographic sizes the market at €67 million – where 19 per cent of video advertising is traded programmatically – and highlights expected growth to €358 million in 2020 more than half of which (54 per cent) will be traded programmatically. The Netherlands is expected to grow from 34 per cent traded programmatically in 2015 to 63 per cent in 2020 and Belgium is expected to move from 8 per cent in 2015 to 39 per cent by 2020 when the market will be worth €26 million.
The infographic charts the growth of programmatic video in Italy from €6 million in 2013 to €38 million in 2015 to a predicted size of €245 million in 2020, a compound annual growth rate of 45 per cent. 12 per cent of online video advertising in Italy was traded programmatically in 2015 and it is predicted to grow to 47 per cent. The Spanish will also trade 47 per cent of online video advertising programmatically in 2020, by which point the market is expected to be worth €98 million, up from €4 million in 2013 and €15 million in 2015.
Mike Shehan, CEO of SpotX explains, “The data shows the dramatic rise of video advertising across Europe, which has been reflected in our own growth across Europe with rising revenues every year. We introduced video real time bidding in 2010, and now have established offices in London, Hamburg and Amsterdam contributing to the global growth of SpotX. The UK, France and the Netherlands are leading the adoption of programmatic online video in Europe, followed by a sizeable and important market in Germany, as well as emerging markets with high potential including the Nordics, Spain, Italy, Switzerland and Austria.”
Daniel Knapp, Senior Director of Advertising Research at IHS, adds, “This infographic illustrates the research we conducted showing how programmatic online video advertising has exploded across Europe from experimentation in 2013 to ubiquity by 2015. Publishers and broadcasters have embraced a programmatic mindset. They are innovating with video content and exploring different programmatic video advertising strategies including acquisitions and partnerships as well as building in-house capabilities to drive revenue growth.”
The full report from IHS can be downloaded here