Germany’s Programmatic Ad Spending to Leap 45% in 2016
Spending on programmatic advertising—digital display ads priced and placed via automated processes, including real-time auctions—is still trending sharply upward in Germany. In 2016, outlays will be more than double those of just two years ago, according to Bundesverband Digitale Wirtschaft (BVDW). Data on display ad revenues transacted programmatically was collected from leading sell-side platforms by a neutral auditor, reported and extrapolated to represent the entire national market.
The BVDW analysis points to a continuation of very robust double-digit growth. Net ad spending on programmatic placements in Germany stood at €269 million ($298 million) in 2014, according to BVDW, and rose 45% in 2015, to €390 million ($433 million). This year is expected to register another 45% gain, taking the total to €566 million ($628 million).
The popularity of programmatic buying is rocketing in Germany—as in other European markets—despite significant hurdles. For example, more than half of marketing decision-makers in Germany polled about their experiences of programmatic by YouGov for Adform in December 2015 said they had too little control of their own data, and 42% cited the lack of transparency about how advertiser data was used by other parties involved in programmatic transactions. Nearly a third also noted a lack of clarity about where campaigns and individual ads were run.
On the other hand, many advertisers in Germany are content to have taken the programmatic plunge. Another survey of marketing decision-makers for Brainagency, also in December 2015, found that two-thirds were very satisfied or rather satisfied with the real-time buying and programmatic aspects of their firm’s media strategy. That was a higher proportion than felt satisfied with their search tactics (60.0%) or use of social media (41.7%).