HiMedia reveals the results from its study on programmatic buying in Southern Europe
HiMedia, leading European digital advertising network, and AppNexus, the industry’s largest independent ad tech company, are glad to present the results of their study conducted in collaboration with WARC and IAB Europe: “Why and how ‘programmatic’ buying is emerging as key to real-time marketing success”.
RESULTS SUMMARY :
- 38% of South European organizations use programmatic buying, against an average of 47% in Europe.
- Targeting is cited by 47% of organizations as a key benefit of programmatic, followed by the ability to react in real time for 38% of organizations.
- 68% of Southern European organizations are turning to programmatic in order to gain a competitive advantage.
- Nearly 9 in 10 professionals (86%) in Southern Europe believe that programmatic is the future of digital advertising.
Between April and May 2014, we collected 660 full responses from Marketers, Media Buyers, Publishers and Advertising Agencies to discover what the industry is really thinking about the key issues surrounding programmatic buying.
“Much was already written about what is programmatic buying and about its growth but until today, surprisingly, very few studies have explored the reasons for its success and the transformations that the industry is currently facing” states Graham Wylie, Senior Director, EMEA & APAC Marketing, AppNexus. “This study explores for the first time programmatic buying within its larger environment that is real-time marketing and the convergence between owned, earned, and paid-media”.
A winning bet
As early as 2011, HiMedia signed a partnership with AppNexus and fully committed to programmatic buying by making available 100% of its inventory on its market place Adexchange.com. This decision, received with skepticism by some industry actors at the time, proves today to be fruitful since nearly nine in ten professionals (86%) in Southern Europe (Spain, Italy and Portugal) believe that programmatic buying is the future of digital advertising.
However, there are still barriers to the adoption of programmatic buying in Southern Europe, both from a lack of understanding from the actors in the advertising sector and from budget battles. Indeed, just 38% of South European organizations use programmatic buying against 47% in the rest of Europe.
For Carlo Poss, CEO HiMedia Italia, “The Real-time marketing is now. Programmatic is definitely a concrete advantage both in terms of targeting and real-time optimization. Unfortunately, in our country we’re still running into publishers and advertisers’ resistances in using Programmatic. But when they give us the chance to show them its benefits, something magical happens: both parties understand the opportunity they have. The former can sell 100% of their inventory at a right price while the latter can be certain their budget is entirely dedicated to the correct target. A perfect real time targeting”.
Encouragingly, the study finds that the budget is no more considered a key determinant for campaign success. Rather, targeting and visibility have become primary concerns for Southern European organizations. Programmatic buying thus responds to these concerns with an improved targeting and real-time reactivity being perceived as the primary benefits for 47% and 38% of organizations respectively.
And as such, as David Baranes, Country Manager France and Southern Europe, AppNexus, declares “As consumers migrate to an always-connected, mobile, multiscreen and real-time world, advertisers must follow or risk losing relevance. Traditional models do not scale and so programmatic has emerged as the major driver of real-time digital engagement, with analysts predicting that it will account for as much 60% of all digital advertising by 2017”.
The full study is available here.