Study reveals Real-Time Bidding will account for nearly 22 percent of US online video advertising spending in 2013
Sydney, Australia, March 28, 2012 – According to an industry first study* by Forrester Consulting commissioned by SpotXchange, the largest global marketplace of video ad inventory, real-time bidding (RTB) in online video advertising will account for 21.8 percent of all US online video spending by 2013. In the study ”Online Video RTB Primed for Dramatic Growth,” Forrester found that RTB for online video has emerged as a substantial component of online video buys, with bid-based buying and private exchange driven deals serving as the two primary buying methods.
Partially as a result of interviews with online video buyers, sellers and technology providers, Forrester determined that US online video RTB spending has and will continue to dramatically increase. In 2011, US online video RTB spending accounted for $190 million, in 2012 Forrester predicts RTB spending will increase to $387 million and by 2013, RTB spending will increase to $667 million – which represents a 251% increase since 2011. One of the driving factors behind this growth is the success of RTB in online display advertising. Buyers who have experienced RTB in online display advertising have been among the earliest adopters of RTB for online video as they are very familiar with the technology and audience-based buying.
According to the study Online Video RTB Primed for Dramatic Growth (March 2012), in the online display market, RTB existed as a mere concept for years before it became a reality. On the contrary, online video RTB has shifted quickly from the conceptual to the actual. Most importantly, buyer and seller experiences with display RTB have paved the way for both parties to more quickly enter the online video RTB market.
RTB is the process by which advertisers assign individual value to a particular ad impression by bidding on those impressions in real time in an auction environment. The process was initially driven by demand site entities – including advertisers, ad agencies, trading desks and DSPs to name a few – to reduce waste in display advertising spend. However, as time has gone on, the advertising industry recognised the inherent benefit for publishers looking to raise CPMs – cost per thousand impressions. RTB in display advertising has laid the groundwork for RTB in online video.
“We believe this study provides validation to what we already knew; that RTB will be an extremely strong force of online video spends in the coming years,” said Vicki Lyon, Managing Director of SpotXchange in APAC. “We are seeing very similar percentage growth in our RTB marketplace, and this study proves to us that we’ve had the right focus all along – to give our RTB buyers, sellers, and DSPs the most helpful and transparent information we can about each bid impression, pricing and inventory availability. We look forward to continuing to lead the way in video RTB in the years to come.”
*To download the full study, Online Video RTB Primed for Dramatic Growth, please visit www.spotxchange.com.