Programmatic revenues rose 33% in 2018

Anne Freier

In Mobile Advertising. September 17, 2019

Programmatic revenues increased by 33% in 2018 to €16.7 billion according to the latest report by IAB Europe. Over 70% of display and 50% of video is now being traded programmatically.

Social media dominates the programmatic landscape. Townsend Fehan, CEO at IAB Europe, noted that the industry was transforming rapidly due to safety issues and demand for a better consumer experience.

“In the context of this evolution, it is encouraging to see the majority of stakeholders expecting an increase in programmatic investments of up to 80 percent over the next 12 months. In particular, we expect digital out-of-home, audio and connected TV to be areas of growth. It is clear however that talent, the low buy-side adoption of ads.txt, and supply chain transparency remain impediments to this growth and these are areas we will be addressing with our members.”

Yet key concerns still require addressing. The majority of advertisers have not yet implemented ads.txt or apps-ads.txt. Just 5% of advertisers and 26% of agencies are buying most of their inventory ads.txt verified.

For publishers, ads.txt adoption was higher with 56% selling most of their inventory with ads.txt files attached.

“I hope the release of this year’s ‘Attitudes to Programmatic Advertising’ report will be the catalyst for greater levels of app-ads.txt adoption for publishers, increasing the volume of inventory that is verified, whilst increasing buy-side awareness of this simple, yet effective tool to tackle transparency and quality concerns,” added David Goddard, VP Global Programmatic Strategy at BBC Global News.

At the same time, there appears to be a move toward hybrid models for programmatic trading. More advertisers (7%) used consultancies for programmatic buying and 52% of them considered taking programmatic in-house.