Programmatic Ad Buying to Increase Rapidly

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Interest in mobile advertising is growing so quickly that forecasters are being forced to revise their numbers. A new prediction from eMarketer also bigdatacontains updated information about digital display sales and its impact on real-time bidding (RTB). The demand for more RTB will also change the way media sales professionals do their jobs on a daily basis.

eMarketers analysts believe that mobile internet display ad spending will reach $5.99 billion in 2014. By 2017, that number will reach $14.5 billion. Today, 29% of all digital display ads are shown on mobile devices. In 3 more years, the devices will have 48.4% of the digital display market.

Mobile is just part of the story for the digital display format. Advertisers also spend plenty to show these ads to desktop and laptop users.

To sell these ads, more publishers are releasing inventory to real-time bidding systems. And, more marketers are purchasing ad space in  this way because it’s cost-efficient and allows them to target their audiences.  This year, about $4.54 billion, or 22%,  of the digital display ad market will be purchased through RTB.  About 29% of the market, or $8.69 billion, will be funneled through RTB systems in 2017.

Publishers can compete in this market by encouraging their salespeople to become expert advisors in digital media and RTB. Many advertisers don’t understand the changes that have taken place in the media space. While RTB systems typically drive down price, marketers still need to consider more than display ad space when allocating their digital budgets. They’re looking for help in formats like search and social media, as well. Media sales professionals who offer expert advice in a range of formats can increase their sales in this area and will offset some of the losses that may occur as RTB grows.

[Sources: Warner, Charles. Does Real-time Bidding Threaten Salespeople? Mediacurmudgeon​.com. 15 Nov. 2012. Web.  3 Sep. 2013; Nearly 1/5 of U.S. Display Spending. Emarketer​.com. 23 Aug. 2013. Web. 3 Sep. 2013]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.
September 3, 2013 Digital + Technology Tags: , ,