eMarketer, the media researchers, have just released new predictions which point towards half of mobile display ad spend in Germany being conducted programmatically in 2016. The push is being driven by a 75% growth in automated mobile advertising investments. In 2018, programmatic trading is going to be responsible for over 68% of mobile ad outlays in line with €1.1bn.
However, more programmatic spending in the country is also going towards mobile devices at almost 59%. As such mobiles are more likely to deliver traded ads programmatically.
Mobile programmatic on the rise in Germany
Germany is not alone. According to predictions from Quantcast, Western Europe in general has turned towards programmatic mobile ad options.
Franck Lewkowicz, Managing director for France, Quantcast, suggests:
“Now [that] advertisers have understood how efficient programmatic can be, they’re showing a lot of interest in using programmatic for branding purposes. Not only can programmatic help brands reach higher volumes of consumers, but it’s also a great asset to build brand awareness and increase brand loyalty while traditional forms of advertising like TV or billboards have shown their limitations.”
Programmatic has certainly caught on in Germany. Indeed, a study by the IAB earlier this year, found that only 13% of advertisers and 8% of publishers are not using programmatic technologies. Greater efficiency, cost reduction and lower media wastage were among the top reasons for marketers to opt for programmatic.
Paco Panconcelli, Managing director, Quantcast, confirms:
“The time when programmatic in Germany was just seen as a hype has ended. We’ve reached a critical juncture over the past year. Advertisers want relevant advertising and are turning to programmatic and data to find appropriate users already at the beginning of a customer journey and guiding them through the whole marketing funnel to conversion.”
However, programmatic hasn’t reached its full potential just yet. Panconcelli adds:
“German advertisers still tend to see programmatic as a trigger to boost performance only. But programmatic is so much more – it’s about branding as well, and how to combine branding and performance most effectively. Advertisers must move away from just looking to boost campaigns with performance goals to developing a holistic marketing strategy.”