Connected TV advertising in Europe could hit the £726 million mark by 2020, according to the latest research from SpotX, in collaboration with MTM.
The Connected TV Advertising Opportunity in Europe report predicts the UK will generate the largest revenue, while Italy is set for the fastest annual growth.
The research stated that advertisers are now recognising the impact of targeted TV advertising, and, as a result, predicted the market will grow over 250 per cent from £198 million in 2016 to £726 million in 2020.
SpotX predicts that the UK market will have a 19 per cent CAGR to 2020, achieved through increased user engagement with connected TV technology, combined with broadcasters’ commitment to providing services such as ITV Hub and BBC iPlayer.
Further key stats from the SpotX research included:
– France will have the second highest connected TV advertising revenue, with around £211 million to be generated by advertising delivered via the open internet to the TV screen in 2020
– Italy will show rapid connected TV advertising growth, with participants in the research predicting an 80 per cent CAGR between 2016 and 2020, being worth £92 million in two years’ time, from £8.8 million in 2016.
– Germany is set to grow from £44 million in 2016 to £110 million in 2020 with a CAGR of 24 per cent, followed by Spain with growth expected to reach £93 million in 2020, which will equal revenues generated in Italy.
Mike Shehan, SpotX co-founder and CEO, said: “The data shows the dramatic rise of adoption of connected TV advertising across Europe, reflecting the growth we have experienced already in the US. The story in the [research] has been reflected by our own expansion at SpotX working with leading European innovators such as STV, TV Player, Zattoo, The Box and Dugout on their strategies for global connected TV advertising revenue.”