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AppNexus and Rocket Fuel on the development of the programmatic buying market

AppNexus and Rocket Fuel on the development of the programmatic buying market

Real-time advertising has arrived in Germany and is developing rapidly. Many providers of so-called programmatic media purchasing are again represented at this year’s Dmexco. Many exhibitors are US companies that have established themselves here in Europe in recent years and are driving the real-time bidding market. Read comments from AppNexus and Rocket Fuel on the programmatic buying market and how it will develop in the US and Europe over the next few years.

Frederike Voss, Country Manager Central Europe, AppNexus:

“One of the most popular forms of automated trading is real-time bidding (RTB). RTB has created real added value for buyers by offering the opportunity to use target group data on an impression basis. However, the German market is not a reflection of the US market in which RTB originally emerged. Germany has benefited from largely avoiding the complexity of the interaction between DSPs, SSPs and exchanges. For example, the exchanges and networks dominate the ad tech markets in the USA, whereas in Germany marketers and publishers still assume the leading position within the markets. The resulting market enables more premium transactions than in the USA. RTB-based advertising sales in Germany in 2012 had a volume of 168 million US dollars with an estimated annual growth of more than 170 percent. Current estimates assume that the share of RTB spending in the total advertising sales volume in Germany will increase from four to 21 percent by 2015. In the same study, RTB-based ad sales in the US were $ 2.183 million in 2012, with an estimated annual increase of more than 104.6 percent. By way of comparison, the estimate of the share of RTB spending in the total advertising sales volume in the USA assumes growth from 15.6 to 29.3 percent by 2015. Germany has already had a very successful start with the introduction of real-time advertising. From a global perspective, we expect Germany to be a positive example of how relational RTB can combine the efficiency of automated transactions with the value of real buyer-seller relationships. “

Dominic Trigg, VP & Managing Director Europe, Rocket Fuel:

“The RTB market offers advertisers an effective way of buying media and website operators a great opportunity to sell their advertising inventory in a meaningful way. As is so often the case, it all began in the USA, where we are today at a point where there are only a few website operators who do not make their site available for an advertising exchange. Here in Europe, the UK has followed suit, but there is still a lot of premium inventory that is not available to RTB. European countries like Germany, which are dealing with RTB for the first time, still doubt whether they should provide their inventory for the exchanges. The main reason for this is because they are concerned that their own sales teams are competing with the inventory they are selling on the exchanges. In the future, other media, including traditional ones, will undoubtedly be available via RTB. At the moment, RTB is presented or used as if it were just a platform for display advertising, but the proportion of video and mobile offers is growing all the time. I think that several media formats in addition to online, including TV formats, are traded via RTB. RTB is largely driven by the further development of one-to-one marketing. I’ve been in this field since 1996 and since then the US market has been 18 months to 2 years ahead of the UK market. The UK market is about 1 year ahead of the rest of Europe. In the past 18 months we’ve seen a small revolution in the UK in terms of RTB and programmatic buying attention. It is similar in Germany and France. The French, Italian and Spanish markets are very interesting right now. This has in part to do with the fact that there are recessions here, especially in Spain and Italy. Marketing executives’ consideration of where and how to spend their money is a hot topic right now. In the RTB it is absolutely verifiable where, when and how the marketing budget is spent and what causes the greatest effect. Rocket Fuel offers a programmatic platform with such amazing insights into where, when and why advertising has the best effect. “(De)

You will find AppNexus at Dmexo 2013 in Hall 7, Stand C025 C029.

You can find Rocket Fuel at Dmexco 2013 in Hall 7, Stand A040 A042.