It is believed that European brands are moving their programmatic advertising trading in-house, according to a report from the Interactive Advertising Bureau (IAB). The survey found that an average of 86% of brands that buy ads programmatically in Europe, including France, Germany, Italy, Spain and the UK are either completely or partially adopting trading in-house.
The report provides results from 950 brands’ adoption rate of programmatic in-housing, in-housing drivers, type and depth of in-house buying functions, and General Data Protection Regulation (GDPR) impact within five European markets (mentioned above).
Drivers and challenges
Breaking down the drivers and challenges of in-housing programmatic advertising, 65% of brands remain programmatically active with brands in the UK and Italy leading the way with a rate at or above 70%. Meanwhile, brands in Germany (48%) and France (63%) registered the lowest programmatic buying engagement, reflecting the heavy focus on consumer privacy in the two countries.
Since the rollout of GDPR last year, two-thirds of European brands indicated that programmatic ad spending actually increased during the eight months following its inception, suggesting that marketplace demand softened GDPR impact. Elsewhere across Europe, primary drivers for trading programmatic in-house were found to be cost efficiency, audience targeting, and campaign effectiveness.
However, despite key motivators, a number of challenges were identified among brands when it came to in-housing programmatic advertising. The biggest challenge was a cross-channel disconnect in which a company is operating in marketing silos. As stated in Marketing Dive, silos can also be an issue and a lack of talents or resources can also pose further challenges.
The IAB report concludes that in-housing has become the main format for trading media as advertisers look for better control over where their ads run in addition to handling data now that GPDR is in effect. In-housing can also offer brands better cost efficiency and transparency, improved control and management of ads, and better targeting. The research also suggests that advertisers need to focus on internal organisation in order to make the most of in-house programmatic trading.