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RTB Gives Digital Video an Extra Boost

Spending on video bought via RTB to significantly outpace overall digital video growth

Advertisers and publishers have been quick to join the real-time bidding (RTB) marketplace. Drawn by the efficiency and targeting offered by programmatic buying, RTB spending on display formats has risen fast. And digital video—already a fast-growing format—is now seeing a significant percentage of that RTB outlay.

Forrester Consulting, in a survey commissioned by video RTB marketplace SpotXchange, found that in 2012 the number of video ad impressions bought via RTB exchanges doubled year over year; this year, the number of video impressions will top 100 billion.

Programmatic buying is a new means of purchasing display ads, and many advertisers and publishers are still not fully versed in the process. Moreover, video poses its own challenges to the RTB model; premium pricing has made publishers reluctant to move too much inventory onto RTB markets too fast. But as more familiarize themselves with the process, the inventory and corresponding dollars will climb.

Forrester projected that spending on video ads bought via RTB will reach $686 million this year and top $1 billion in 2014. At that point, RTB spending on the format will account for nearly one-quarter of digital video outlays.

Between 2011 and 2014, RTB video spending will also grow at nearly three times the rate of overall video spending, rising at a compound annual growth (CAGR) rate of 57% vs. 20% for video overall, according to Forrester.

eMarketer estimates that total US RTB digital display ad spending will rise by 73% this year, after more than doubling in 2011 and nearly doubling again in 2012. In 2015, RTB spend will account for one out of four display dollars.

eMarketer estimates that video spending overall will rise by 41% this year to $4.1 billion, slightly higher than Forrester’s estimate of $3.59 billion.


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