• by Laurie Sullivan  @lauriesullivan, February 10, 2011

While advertisers spent $353 million through real-time bidding platforms in the United States during 2010, estimates suggest that number will reach $823 million in 2011, per a new study. The findings, presented by Forrester Analysts Michael Greene and Joanna O'Connell, were commissioned by Admeld and presented at the company's Annual Partner Forum.

The study highlights the change in media buys, and that in 2010 "RTB became real." Aside from the epiphany, findings from the report reveal that technology complexity, regulatory ambiguity and fears of poor inventory quality remain challenges. They also suggest that publishers standing on the sidelines will forfeit an opportunity to participate in the market, as RTB grows and expands worldwide,

RTB grew up in 2010, as technology created the perfect infrastructure and agency trading desks, such as Publicis' Vivaki AOD and Omnicom's Accuen, bought money to the table. For years, publishers had to rely on many ad networks -- sometimes more than 30 -- to fill remnant inventory spots. But with all the advancements made in 2010, significant challenges remain.

Buyers at larger agencies can create and have access to their own trading desks, but only a few help the smaller companies, according to Michael Barrett, Admeld CEO. "The adoption level has been fast-paced, but some of the issues seen last year revolve around the plumping," he says. "This year, we're solving the problem of bringing more high-quality inventory, which should accelerate the growth of real-time bidding."

Poor inventory quality continues to keep some brands from trying RTB. Financial services and telecom makers quickly adopted the method, but consumer packaged-goods companies have been slow to come on board. Technologies from demand-side platforms, data management, ad exchanges and servers that make up a complex RTB platform also limit adoption. The study suggests that disparate systems will keep many small companies away.

Aside from complexity challenges, not all exchanges can handle RTB inventory. The study calls out Yahoo's Right Media platform, which places limitations by sharing less data about inventory availability. "The availability of high-quality, effective Yahoo inventory means that buyers continue to invest through Right Media despite limited RTB access," per the findings.

Finally, regulatory issues remain uncertain. A December Federal Trade Commission report "chastised industry self-regulation efforts as being 'too slow' and endorsed a formal 'Do Not Track' framework to allow consumers to opt-out online data collection."

Although there have been challenges, Barrett says during the past six months companies in the United Kingdom and Germany have increased spending by four times and 12 times, respectively, on its RTB platform.

Admeld's technology supports customers such as Answers.com, Discovery Communications, Fox News, Hearst Television, IDG TechNetwork, The Weather Channel and more than 500 others worldwide.