RTB Projected to Account for 25% of Online Video Ad Spending Next Year

April 9, 2013

This article is included in these additional categories:

Digital

SpotXchangeForrester-Online-Video-Ad-Spend-2011-2014-Apr2013Total spending for real-time bidding (RTB) on video ads is estimated to grow by a compound annual rate of 57% between 2011 and 2014, per a new study [download page] commissioned by SpotXchange and conducted by Forrester Consulting. That would outpace the 20% compound annual growth rate for total spending on video advertising, meaning that RTB would account for 24.7% of total spending next year, up from just 8.7% last year.

Total spending on online video advertising is expected to reach $4.6 billion next year, up 28.6% from $3.6 billion this year, according to the report. As the fastest growing segment of online video, RTB is forecast to grow 71% this year to $686 million, and another 66% next year to $1.1 billion.

The study also indicates that RTB exchange-traded video impressions are growing at a rapid clip, estimated to be increasing at an annual compound rate of 61% between 2011 and 2014. Not surprisingly, the growth rate is slowing somewhat (112% last year; 86% this year; and 72% next year), but will remain very strong.

Other Findings:

  • Premium publishers are still holding inventory while claiming to be sold out in an effort to sustain current high eCPMs.
  • Growth in inventory means that publishers will need to open up to an auction-based marketplace, wherein RTB platforms will transform from RTB bidding engines to RTB buying engines.
  • Given that there is no “one-size-fits-all model” for programmatic buying, the researchers believe that the marketplace will divide along the following three lines: private versus public; fixed-price versus bidded; and premium versus run of network.

The study also lists 4 main growth drivers and inhibitors.
Growth drivers are:

  • “A desire for automated buying and selling”
  • “Advertisers’ use of online video to supplement TV campaigns”
  • “New measurement methodologies that appeal to brand advertisers”
  • Buyers seeking video but at a real-time price”

Inhibiting growth will be:

  • “Online video not evolving like display”
  • “The infancy of comparable measurement between video and TV”
  • “A seller’s market for premium video ad inventory”
  • “Buyer confusion about in-banner versus in-stream inventory”
Chart-Library-Ad-1

Explore More Articles.

Which Skills Are Important in RevOps?

Which Skills Are Important in RevOps?

9 in 10 RevOps professionals view data analysis skills as being important, a high percentage also don’t believe they need this skill for their job.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This