VideoWeek Research is proud today to release ‘The Future of CTV Advertising in Europe‘, our debut research project released in partnership with PubMatic.
This first-of-its-kind research is based on 60 in-depth interviews with buy and sell-side leaders in six markets (UK, Germany, France, Italy, Spain and Sweden) as well as quantitative data. The aim is to look beyond preconceptions around Europe’s fragmented CTV market, and to explore in granular detail how CTV development is actually playing out on the ground across Europe.
Headline findings include:
- Broadcasters are hesitant to adopt a ‘CTV first’ mentality, with some still framing CTV as a digital ‘bolt-on’ to traditional linear broadcasting, rather than the future of TV advertising. This psychological hurdle is in some cases preventing the necessary investment in CTV apps and capabilities.
- TV’s moat may be eroded by the buy-side, as brands’ and agencies’ expectations around media targeting and measurement cause them to funnel ad spend elsewhere. Deal structures and rebates have kept TV spend high in recent years, but this protection could soon wear off.
- A two-speed Europe is emerging, as large global players with unified content, technology and data infrastructure are moving much faster than smaller, local rivals. While smaller players are making progress, there are still significant hurdles in restructuring markets and incentives for a CTV-first world.
- Both buyers and sellers say data is key. Buy-side players across Europe are aligned in wanting to be able to bring their own data into targeted CTV buys. But sellers in some markets have been slow to roll out CTV data capabilities, with some citing concerns about loss of control over their inventory, and the need to protect the viewer experience.
- Programmatic development is staggered throughout Europe, with the UK market leading the way as the only ‘advanced’ market. Programmatic maturity in Germany and France is rated as ‘intermediate’, while development in Spain, Italy and Sweden is still ‘nascent’.
By looking beyond the surface level data and interviewing change makers in each market, we’ve been able to gauge sentiment across Europe around how CTV development is really progressing, and which roadblocks are holding back CTV growth. We’ve also been able to lay out a set of recommendations for how the industry can accelerate CTV maturity.
Individual analyses of the six markets also provide insight into the nuances of each market. This insight will prove invaluable to any CTV stakeholders looking to expand into those markets, or even for native broadcasters and video publishers wanting to get a handle on the state of CTV in their home territory.