COLOGNE: Online programmatic video revenues in Europe jumped from €22m in 2012 to €375m in 2015 and programmatic is expected to account for more than half of all online video advertising revenue by 2020, a new report has stated.

According to IHS, the insights and analytics firm, and video inventory management platform SpotX, European programmatic advertising revenue will be worth €2bn in five years' time.

The UK, France and the Netherlands are the three leading countries for programmatic video advertising in Europe, which the report said is seeing programmatic move rapidly from its experimental stage to the mainstream.

More than a third of video advertising in the Netherlands will come from programmatic by the end of 2015, rising to more than 60% by 2020, Digital TV Europe reported.

More than a fifth (22.8%) of video advertising revenue is currently generated programmatically in the UK while the proportion stands at 18.6% in France.

However, IHS said it expects programmatic channels to account for more than half (54%) of all French video revenue by 2020. "France is a programmatic pioneer market," said Eleni Marouli, a senior analyst at IHS Technology.

Daniel Knapp, a senior director at IHS Technology, predicted that the revision of European data protection regulation and the establishment of the EU Digital Single Market will be major drivers for improving the volume, quality and utility of data.

As a consequence, IHS expects the Italian market to take off so that programmatic video will account for 46.6% of all video advertising revenue in Italy by 2020.

"Italy is a programmatic video market waiting to happen, and we expect the market to explode in late 2016 and 2017", he said.

Turning to Germany, he said: "The German online video advertising market will be worth €331m in 2015 establishing it as the number three video advertising market in this study behind the UK and France."

Further evidence of the growth of programmatic advertising in Europe came with the release of other figures from IHS for the Interactive Advertising Bureau Europe at the dmexco 2015 event.

According to the data, the European programmatic market grew 70.5% from €2.14bn in 2013 to €3.65bn in 2014 while programmatic mobile advertising revenue grew 240% from €230m in 2013 to €552m last year.

Meanwhile, programmatic video advertising grew 176% from €76m to €205m over the same period.

Data sourced from IHS, SpotX, Digital TV Europe, IAB Europe; additional content by Warc staff