LONDON – The selling of online video advertising using so-called “programmatic” trading technologies has come a long way in the last couple of years – but it has a way to go yet, according to online video ad platform SpotX’s UK and southern Europe MD Leon Siotis.
“Although we’ve seen tremendous growth over the last five years, still believe that it’s very much in its infancy,” Siotis says in this video interview with Beet.TV. “In 2015, only 22% of video advertising was spent programmatically – and that number is expected to grow to 60% by 2020. That’s an incremental $500m within this market over the next five years, which just goes to show you the huge opportunity that is still to come.”
Siotis was quoting research carried out for SpotX by IHS, the research firm, which predicts programmatic video in Europe will become a €2bn industry in 2020. Amid that expansion, growth will be uneven in different parts of the continent.
“Although a lot of the focus is usually on the UK and France as programmatic pioneers, are really starting to see tremendous growth across Spain and Italy,” Siotis adds. “Italy 2016 is seen as a brigadier for them. Now, they’ve been testing the waters with programmatic, but, as there’s an increased appetite on the demand side for video, we’re really expecting them to open up the floodgates.”