Online Video Revenue in Europe Jumps to €375M in 2015, Says Study
Programmatic online video ad sales are growing faster in some countries than others, but will count for over half of revenue by 2020.
Revenues from online video have grown dramatically in Europe, finds a study created by research firm IHS and video management platform SpotX. While online video took in €22 million in 2012, that figure grew to €375 in 2015.
The study predicts that programmatic video advertising will take in €2 billion by 2020, and that number will constitute over half of all online video ad revenue.
Looking at individual countries, the study forecasts that the German online video ad market will grow to €331 million in 2015. It calls France a pioneer in programmatic ad sales, and says that 18.6 percent of all video ad revenue in that country will be from programmatic sales by the end of 2015. That figure will grow to 54 percent in 2020.
Italy has been a slow starter for programmatic sales, but the study predicts it will explode in 2016 and 2017. Currently, the Netherlands has the most mature programmatic video market in Europe, the study says. It will still be the programmatic leader in Europe in 2020, with a predicted 63.3 percent of all online video ad revenue from programmatic sales.
“Programmatic video advertising in Europe is on the path from experimentation to ubiquity,” says Daniel Knapp, senior director at IHS Technology. “In three of the markets surveyed—Netherlands, U.K., and France—programmatic video will even become the predominant source of video advertising revenue by 2020.”
The full study is available for free download (registration required).
Italy is the biggest TV viewer in Europe, but Americans watch even more. Catch-up services are popular in the U.K.
More channels are creating over-the-top direct-to-consumer subscription services, changing the meaning of what a channel is and what it provides.