RTB to Become Larger Part of Display Ad Sales

Earlier this year, I highlighted a couple of reports which predicted that about 20% of publishers and marketers will use real-​time bidding (RTB) to buy and sell online ad space by year end. This trend particularly impacts the display ad market. eMarketer analysts expect that about 25% of display ads will be sold through the RTB process by 2015.

This year, the display ad market is expected to amount to $14.98 billion which is a 21.5% increase over 2011. About $1.947 billion or 13% of this market will be managed through RTB. This level of spending marks a 98% increase over last year. By 2016, eMarketer analysts believe the real-​time bidding market will be worth $7.06 billion.

Several factors will influence the future of the RTB market:

  • The private ad exchange run by Facebook (FBX)
  • The increased inventory in the mobile space
  • The increased inventory for premium ad space
  • The increase demand for transparency in the digital display market

With more marketers and publishers investing in technology to assist them in the era of Big Data, there’s little question that RTB will grow. The technology behind this buying process helps marketers reach beyond geo-​target, age, and demographic and set minimum bid prices for situations like retargeting a consumer who has seen an ad 3 times this week or visits similar sites. For publishers, RTB allows flexibility to invite certain ad partners into a private exchange and to set limits on pricing and can also increase and speed up spending.

[Source: Real-​Time Bidding to Take Ever-​Bigger Slice of Pie. Emarketer​.com. 15 Nov. 2012. Web. 30 Nov. 2012] 
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.