AI and CTV growth areas for European advertising
AI and CTV top the list of growth areas for European advertisers and agencies, with 36% citing AI as a key growth driver. As the industry prepares for a post-cookie world, first-party data and contextual targeting remain focal strategies for driving audience insights, a survey from IAB Europe’s Programmatic Trading Committee shows.
“As the European digital ad market, valued at €96.9 billion, continues its shift toward programmatic-first approaches, the survey highlights a steady growth in programmatic spending across display, mobile, video, and emerging channels such as Connected TV (CTV) and Retail Media”, the report says.
27% of advertisers now allocate over 81% of their display budgets programmatically, with agencies leading the shift, reporting a 68% increase in programmatic buying. Mobile also saw a rise in agency-side programmatic investment, reaching 61%, according to the survey that comprises 254 respondents across 31 markets.
“CTV and Retail Media are becoming pillars of programmatic growth, with 40% of advertisers buying CTV programmatically.”
“Agencies also report a significant rise in Retail Media investments, signaling new strategies in this maturing programmatic landscape”, the report says.
“The rise of Connected TV is transforming the programmatic advertising landscape”, says Cadi Jones, VP Europe at Index Exchange.
“With an increasing number of viewers opting for streaming platforms, we’re seeing a major change in how advertisers connect with their audiences. As we continue to innovate in this space, leveraging programmatic solutions will be key to unlocking the full potential of CTV, driving both engagement and performance for the industry at large.”
The report says that rising media quality concerns and the phase-out of third-party cookies highlight a significant shift for the buy side, with 31% of advertisers prioritising brand safety and media quality as key barriers to investment.
“Agencies and publishers are increasingly prioritising transparency and media quality as essential to maintaining audience trust.”
“Quality assurance is a top priority, with advertisers calling for stronger standards in brand safety, ad fraud prevention, and media reliability to build confidence for sustainable growth.”
“Additionally, data practices are evolving toward first-party data, but industry readiness for the shift from third-party cookies remains mixed.”
While 81% of agencies prioritise sustainability compared to 60% of advertisers, commitment among advertisers has declined by 20% from previous years, according to the report.
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