As programmatic video rapidly moves from an experimental stage to the mainstream, online video is red hot, with revenue jumping from €22 million in 2012 to €375 million in 2015, says IHS and SpotX research.
Furthermore, the research firm and video inventory management platform provider also believe that by 2020 €2 billion, which is over half of all online video advertising revenue, will be generated programmatic sources alone. "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, the UK and France – programmatic video will even become the predominant source of video advertising revenue by 2020."
Germany has the largest advertising market in Europe; its 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 UK and France. The latter is seen as a programmatic pioneer market, having an equilibrium which overcame hesitation and preconceptions associated with such advertising. IHS forecasts that by end of 2015, 18.6% of all video advertising revenue in France will be generated by programmatic means and that by 2020 this figure will rise to 54%.
By 2020, programmatic will generate the majority of video net advertising revenue in Europe.