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Germany Catching Up on European Rivals with 45% Rise in Programmatic Spend

Germany Catching Up on European Rivals with 45% Rise in Programmatic Spend

Programmatic spend in Germany is set to take a 45% swell this year, as automated methods of pricing and placing display ads continue their upward trajectory.

Based on findings by Bundesverband Digitale Wirtschaft (BVDW), total spend in 2016 could double that of 2014, reaching a potential €566 million by the end of the year.

If realised, that would account for nearly a third (32%) of Germany’s total display ad spend.

In terms of programmatic adoption, however, the German market still sits some way behind the UK, which now trades 70% of display inventory via programmatic, according to CIMCOM.

As a result, programmatic in the UK alone is set to pull in £2.5 billion (€3.2 billion) this year, but Germany’s rocketing growth suggests it's now on a similar path to maturity.

Transparency concerns

The rising budgets arrive despite “significant hurdles” regarding programmatic adoption.

According to a 2015 study by YouGov and Adform, over half (52%) of German marketing decision-makers claimed they weren’t yet buying ads via programmatic, chiefly as a result of concerns over transparency.

Nearly a third (31%) in the study claimed that a lack of clarity over where their programmatic ads appeared was reason enough to not invest, while 42% complained that they didn’t know what happened to their data.

Additionally, a lack of cross-industry standardisation also posed a risk for nearly a quarter (23%).

Onwards & upwards

Germany’s growing outlay on programmatic would suggest any misgivings over the legitimacy of the technique are outweighed by the success enjoyed by its adopters.

EMarketer points to another 2015 study by Brainagency, finding two thirds of those employing programmatic in Germany to be ‘satisfied’ or ‘rather satisfied’ with the results.

In fact, satisfaction with programmatic in the study ranked higher than for search (60%) and social media (42%).

Germany’s lower ranking in the runnings for programmatic adoption in Europe, behind leaders UK and the Netherlands, could be owed to its handful of dominant publisher ecosystems, that have until this point not seen the need to employ automated buying techniques.

That Germany is now following a similar suit to its continental neighbours suggests these organisations have opened their doors to programmatic, and are beginning to embrace its full power in driving display ad revenue.

Mark  Jones

Mark Jones

Editorial Executive at PerformanceIN. Mark reports performance marketing news and manages PI's network of guest contributors.

Originally from Plymouth, Mark studied in Reading and London, eventually earning his Master's in Digital Journalism- before making his return to the West Country to join the PI team in Bristol.

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