Online video real-time bidding projected to break billion dollar barrier by 2014
Parent Category: News | 10-04-2013
Research conducted by Forrester on behalf of SpotXchange has calculated that real-time bidding (RTB) will account for a quarter of online video sales that will total $1.14 billion by 2014.
In the study commissioned by the digital video ad inventory marketplace, RTB Powers The Rapid Growth of Online Video, Forrester also found that over the past year, RTB has been the fastest growing segment of the online video advertising market, growing more than 100% from 2011 to 2012, and forecast to grow more than 70% in 2013.
The data also found that in 2012, US online video RTB spending accounted for $402 million, exceeding last year's estimate of growth. For 2013, Forrester predicts RTB spending will increase to $686 million and by 2014, RTB spending will increase to $1.14 billion – which represents a 284% increase since 2012.
One stand-out trend emerged: online video is supplementing TV ad campaigns. Forrester found that even though advertisers have begun to move a small percentage of TV budget to online video, those dollars represent a major influx of revenue into this green-field medium.
SpotXchange believes that as buyers learn how to fill in the gaps of campaigns, they will use RTB to maximise reach, frequency, or sales-lift gaps mid-flight. It adds that programmatic buying mechanisms will continue to grow but diversify. As the online video vocabulary crystallises and more parties understand programmatic buying, its adoption will be significant as a replacement to manual insertions.
Said Michael Shehan, president and CEO of SpotXchange: "Buyers have recognized the inherent value and transparency that RTB and programmatic provides, but we're bullish on making sure publishers realise the power of automation through private marketplaces and new tools that will put them on an even playing field with demand side platforms and agency trading desks. We are excited to lead this charge for publishers and remain committed to aiding in the continued growth of this market."