Programmatic Advertising in Germany: Greater Confidence and Spending Herald a Mature Marketplace

Executive Summary

Many publishers and advertisers in Germany hesitated to board the programmatic bandwagon when automated trading of digital ads first became available. But in 2018, most believe that the advantages outweigh the disadvantages. Spending is rising sharply as a result.

• Programmatic ad spending in Germany will total €1.44 billion ($1.59 billion) in 2018, up 29.7% over last year. In 2019, programmatic investment is expected to reach €1.66 billion ($1.83 billion).
• Outlays on mobile programmatic ads are climbing much faster than comparable spending on desktop and laptops. As a result, mobile programmatic will account for 59.1% of total mobile display ad spending in 2018, or €849.6 million ($939.9 million).
• Transparency and ad fraud are still big issues in the programmatic marketplace. But key institutions in Germany, including the Bundesverband Digitale Wirtschaft (BVDW), have taken the lead in developing standards to ensure that processes and results can be properly assessed.
• Real-time bidding in Germany, including both open auctions and private marketplace deals, will account for 52.0% of the programmatic total in 2018—equivalent to €747.7 million ($827.2 million)—while direct claims will make up 48.0%. Spending on social media advertising, which is mostly transacted via programmatic direct, will continue to boost outlays in that category.