Magna Global, IPG Mediabrands’ strategic global media unit and leader in media intelligence worldwide, released recently “The International State of Programmatic”, the latest research on the state of the programmatic industry in 24 markets across the globe. The report provides key insights and also includes a forecasts on the shift to programmatic in the international arena.
According to the report, the near future will see most of non-premium media inventory transacted through programmatic, mainly via Real Time Buying (RTB), estimated to row 38% by 2017, while programmatic will advance y 31%.
The developing Asia region shows the fastest programmatic growth in 2014 (73%), with total spend surpassing $500mm. On the other hand, Korea is the largest market of the total programmatic spend among developing Asian markets ($237mm in 2014).
Programmatic spend in Latin America will reach to $836mm in 2014 (up 67% compared to previous year), with Brazil being the dominant programmatic market in the region, accounting for more than half of the region’s programmatic spend.
When it comes of Nordics and CEE regions, they will reach a combined programmatic spend of $488mm in 2014, with Sweden being the largest market within the Nordics and CEE regions, accounting for 50% of total spend in 2014. On the other hand, Hungary is on the way to a fast growth and approaches the penetration levels of Sweden and Denmark
Long are the days when marketers could procrastinate about programmatic. As a marketer who has been on both sides of the table – client and agency – I strongly agree with many who suggest that programmatic is the transformative force in the industry. This is proven by our research, which shows impressive programmatic growth rates across regions such as Latin America, Asia, Scandinavia and Central and Eastern Europe
President, Magna Global, World Markets
North America is the leading programmatic market, accounting for more than half of the world’s total programmatic spend, followed by Australia, Japan, China and the UK. However, the growth rate of less mature markets shows a rapid acceleration in the industry; while the top 10 programmatic markets are growing by 39% this year, the medium and smaller markets will grow between 57% and 66% in 2014.
The Nordic countries dominate among the researched European markets; they have been active programmatically for several years whereas CEE countries have started to see activity more recently. Sweden is by far the leading programmatic market and will also have the highest RTB penetration by 2018.
Programmatic, including RTB and non-RTB purchases across both regions will represent 30% of total display spend in 2014, with RTB spend reaching $210mm this year. CEE countries will see a whopping 365% RTB growth in 2014. Because RTB is even newer than non-RTB programmatic in most of these markets, it will grow to over 50% of the total display market by 2018.
The findings and conclusions on Magna Global’s “The International State of Programmatic” were derived from interviews and surveys with senior executives representing trading desks, DSPs, publishers, existing Magna Global research and other publicly available information.