Programmatic Advertising has become a key element in most budgets for advertising in Europe, as it automates the planning process of the media, improving efficiency and effectiveness of the purchase of advertising spaces through different channels.
A new way of buying spaces is being introduced on TV through programmatic buying, despite the investment made currently being low (* see graph 1), experts assure that it will experience growth thanks to the constant increase in the consumption of connected television, even after the restrictions caused by the pandemic are lightened (* see graph 2).
Addressable TV campaigns are expected to boom
The revolution will come in hand with a new format used to connect with the audience: shoppable TV.
Source: IABEurope 2020.
Source: IHS Markit.
Another medium that is expect to develop is digital radio. The proliferation of new audio options such as: streaming service; podcasts; connected cars; radio apps on smart speakers… will fuel your opportunities for growth. Additionally, technological advances make it possible to access the medium “wherever and whenever”. Therefore, it is not surprising that 90% of the professionals in the sector state that they would like to include the online audio format as part of their programmatic strategy. The European digital audio advertising market is forecast to grow to around € 1.5 billion by 2023.
Outdoor advertising is another channel that can be purchased through programmatic buying, although it is not the conventional way of execution, in the future, when it is more systematised, it will be one of the channels where supply and demand are modified. The pandemic has negatively impacted the rate of outdoor advertising spending, mainly motivated by the effects of reduced mobility across Europe. The European DOOH market is expected to reach a value of 8,200 million Euro in 2020, still a low figure, that will increase until reaching 13,000 million Euro in 2024. Nonetheless, if a series of challenges are not addressed (such as lack of expertise of the channel among advertisers and brands, fragmented market, and lack of standardisation) progress in Europe could slow down.
There is no doubt that programmatic buying will continue to increase in the medium where it is most established: online. programmatic buying is deeply rooted in Europe, as four of the top eight markets are European (* see graph 3). The modifications that have emerged are focused on the new quality parameters. They will continue to promote the quality of inventories, fighting against fraud and the lack of transparency.
Source: Programmatic Marketing Forecasts
CAROLINA DIEZ HERNANDO