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European programmatic strategies evolve

News, 22 June 2016

BRUSSELS: There is a clear evolution of programmatic strategies across markets of differing maturities, according to a new study from IAB Europe.

The digital trade body's second annual survey into attitudes towards programmatic advertising was based on a survey of more than 900 advertisers, agencies and publishers from across 29 markets.

This found that most stakeholders in the digital advertising industry were undertaking some form of programmatic advertising: 87% of advertisers, 92% of publishers and 93% of media agencies.

And it observed a "programmatic journey", whereby advertisers start out with an independent specialist, before moving on to an agency or DSP and then, in mature markets, adopting an agency or hybrid model.

Publisher strategies were also seen to be evolving, beginning with a hybrid model before leaning more heavily on their SSP and finally bringing the expertise in-house.

For agencies, the in-house agency trading desk remains dominant.

IAB Europe reported that fewer advertisers were considering in-house than last year, but among those that were increased those that are, the major factors included gaining more control, increasing transparency, integrating across channels and reducing cost.

One reason advertisers may be turning away from the in-house model is the challenge they face in recruiting and training suitable staff

.Henrik Schulte, Media Strategy Manager/EMEA at Schneider Electric, noted that an in-house set-up meant "full control over what happens with our most valuable good: the data of our customers".

And while that isn't necessarily a simple process, he added that "once the set-up is complete, it is a great way to foster cross-functional collaboration while providing our customers with personalised advertising."

The study showed that agencies also want control as well as audience insights that can deliver more value for their clients and control, while publishers are driven by the ability to better monetise their inventory and efficiency in the sales process.

Data sourced from IAB Europe; additional content by Warc staff