Online video advertising is growing so quickly that publishers and advertisers are looking for better ways to manage the selling and buying of that digital media space. For many, real-time onlinevideo2bidding (RTB) offers a good solution. With RTB being used in 24% of video ad buys, analysts believe that the process will evolve from a platform to a programmatic tool.

Forrester Research studied the RTB sector earlier this year for SpotXchange and determined marketers spent $402 million on RTB for online video spots last year. Marketers will spend about $3.6 billion in online video in 2013 and this amount may rise to $4.6 billion in 2014. Analysts believe publishers will have to make changes accommodate demand for RTB as the video market grows. However, premium space publishers are selling video spots in advance and, in doing so, are assured of relatively high eCPMs. A shift to programmatic RTB in the market worries publishers who want to protect their margins.

As online ad buying has increased, the marketplace has evolved into the following models:

  • Bid-based public marketplaces that do well in mid-to long-tail inventory. These marketplaces are optimized for audiences, engagement and direct-response metrics.
  • Private marketplaces that are often run by premium publishers to automate buying and selling-through. Some pricing is dynamic through bidding but some rates are pre-negotiated.

Marketers are ready to commit more funds to online video. Analysts believe the sector is especially attractive to brands who are increasing spending on video and view the format as a supplement to TV. But they are looking for ways to efficiently make their buys and they want to see metrics. All of this can be delivered by the next-generation of RTB systems.

Are  you purchasing online video ad space this year?

[Source: RTB Powers the Rapid Growth of Online Video. SpotXchange.com. 2013. Web. April 2013]