Published November 2016
Programmatic may have got its start in performance-based direct response advertising, but now it’s set to become a viable component for brand advertisers as it makes its way into the world of TV. London-based research firm Enders Analysis projects that the combined potential for annual increased TV ad revenue to be €220-300m across France, Germany, Italy, the Netherlands, Sweden, Turkey and the UK by 2018. Download the full report here.
New research cites significant growth opportunities from automation and ad technology for TV advertising over the next decade. But in order to capture this additional ad revenue and stay ahead of the curve, Enders Analysis says that broadcasters need to prepare their infrastructure and teams now.
According to the study:
- Viewing trends present a pivotal moment for European TV advertising: Declining TV viewing among younger demographics, fragmentation , the lack of robust measurement across screens and the development of online video advertising technology are altering the landscape.
- Programmatic TV is at an early stage, but has shown its potential: The first implementations show clear market potential and have already prompted advertisers to see TV in new ways, beyond its core strengths in mass brand advertising.
- Programmatic practices can add value to TV’s advertising proposition across Europe: Increased audience targeting options and campaign automation will become important for serving the growing needs of TV advertisers in European media markets and advertisers new to TV.
- Prepare now for TV and online video in a combined ad environment: A gradual shift from TV and online video as largely separate markets to video as a combined and versatile advertising environment calls for broadcasters to stay ahead of the curve by investing in infrastructure and adapting their sales strategies now.
The report outlines the existing European TV landscape, examines the region’s programmatic implementations to date and offers recommendations around preparing for the evolution of programmatic TV in Europe.