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Germany's Advertisers Turn to Mobile Programmatic

Mobile programmatic advertising is a game-changer for brands

September 27, 2016 | Media Buying

Half of all mobile display ad spending in Germany this year will be transacted programmatically, eMarketer predicts, propelled by a nearly 75% increase in automated mobile ad investment. In 2018, programmatic trading will be responsible for more than two-thirds (68.0%) of mobile ad outlays, equivalent to more than €1.1 billion ($1.2 billion).

Mobile Programmatic Display Ad Spending in Germany, 2014-2018 (millions of €, % change and % of total mobile display ad spending)

At the same time, an ever-greater share of all programmatic ad spending in Germany is going to mobile devices—an estimated 58.8% in 2016. As a result, mobile is becoming not just the screen of choice for consumers and advertisers alike, but also the screen most likely to deliver programmatically traded ads.

Germany isn’t the only country where mobile advertising and automated trading are both surging. Quantcast, a major player in the programmatic advertising arena, has seen a sharp rise in advertisers across Western Europe turning to programmatic options, including mobile programmatic—with big benefits for brands.

“Now [that] advertisers have understood how efficient programmatic can be, they’re showing a lot of interest in using programmatic for branding purposes,” said Franck Lewkowicz, Quantcast’s managing director for France. “Not only can programmatic help brands reach higher volumes of consumers, but it’s also a great asset to build brand awareness and increase brand loyalty while traditional forms of advertising like TV or billboards have shown their limitations.”

In Germany, the trend is especially pronounced. Programmatic advertising may have taken time to catch on there, but is now unstoppable, according to industry observers. “The time when programmatic in Germany was just seen as a hype has ended. We’ve reached a critical juncture over the past year,” said Paco Panconcelli, managing director of Quantcast in Germany. “Advertisers want relevant advertising and are turning to programmatic and data to find appropriate users already at the beginning of a customer journey and guiding them through the whole marketing funnel to conversion.”

Hence the importance of mobile, which has an increasingly crucial role to play in accompanying consumers throughout the path to purchase. A 2016 Quantcast survey of over 3,000 mobile phone owners ages 16 and older in the UK, France and Germany found that they were researching purchases five times a day, on average, on their mobile devices.

Of course, there’s still work to be done: “We’re still far from unlocking the full potential of programmatic,” Panconcelli said. “German advertisers still tend to see programmatic as a trigger to boost performance only. But programmatic is so much more—it’s about branding as well, and how to combine branding and performance most effectively. Advertisers must move away from just looking to boost campaigns with performance goals to developing a holistic marketing strategy.”

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