IAB Europe Report: Attitudes to Programmatic Advertising 2017

The third annual IAB Europe Attitudes to Programmatic report highlights four key findings:

  1. Quality of advertising and transparency of fees are bottlenecks to investment
  2. The business impacts of programmatic advertising beyond efficiencies are being realised
  3. In-house strategies are becoming more prevalent
  4. Investments in programmatic are set to continue to increase

Better campaign reporting and control on the buy-side and improved inventory control on the sell-side are now cited more frequently as business impacts than lower media costs and trading efficiencies.

It is also worth noting that whilst programmatic is most likely to be used for display and mobile campaigns, video is not far behind in terms of adoption. Indeed, programmatic video revenues increased by 155% in 2016 emphasising it as a key growth area.

In 2017 brand safety and fraud increased as barriers to investment for all stakeholder groups whilst viewability decreased as a barrier.  Transparency of fees in the delivery chain is also a concern for advertisers and in response to IAB Europe formed its Transparency Working Group. The Working Group published a Transparency Guide with questions for stakeholders to ask of their supply chain partners in relation to fees. The guide also covers data and inventory source to address all key elements of programmatic trading.

The study shows that programmatic strategies are evolving and in-house operations becoming more prevalent. For example, a quarter of advertisers are now using an in-house model compared to just 16% in 2016, and the number of advertisers outsourcing to an agency has decreased. The number of agencies and publishers with in-house programmatic operations has also increased.

Looking forward to 2018, the majority of respondents state that they plan to further increase their programmatic trading activity.

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Marie-Clare Puffett

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