A new study by IHS and SpotX, found that revenue across Europe from online video ad jumped from €22 million in 2012 to €375 million in 2015. IHS forecasts that €2 billion, which is over half of all online video advertising revenue, will be generated programmatically by 2020.
Programmatic video is the automation of ads through the use of algorithms powered by the overlay of demographic (age, gender, income) and behavioural (gamer, traveler, football fan) data. “Programmatic video advertising in Europe is on the path from experimentation to ubiquity,” said Daniel Knapp, senior director at IHS Technology. “In three of the markets surveyed – Netherlands, U.K., and France – programmatic video will even become the predominant source of video advertising revenue by 2020.”
According to IHS, Germany has the largest advertising market in Europe and the second largest digital advertising market after the U.K., or the largest if factoring out paid-for search. “The German online video advertising market will be worth €331 million in 2015 establishing it as the number three video advertising market in this study behind the U.K. and France,” Knapp said.