Google's DoubleClick has begun testing in-stream video ads on YouTube, allowing Ad Exchange buyers at a handful of companies to use real-time bidding (RTB) technology to purchase ads. The plan to eventually expand to other sites and platforms across the Web should give advertisers access to better inventory.
The RTB auction model allows advertisers to purchase ad space per impression, rather than in bulk or in buckets of 1,000 impressions. "We think the exchange, which has been growing tremendously, makes the process better," explains Scott Spencer, director of product management at Google's DoubleClick. Citing eMarketer May 2010 stats, he said: "More dollars are flowing into online video, and we expect the spending on video ads to more than double from about $2.1 billion in 2011 to more than $5.5 billion in 2014."
Video has begun to attract eyeballs. Spencer said YouTube gets about 2 billion views daily, monetizing 3 billion videos weekly.
In February, 170 million U.S. Internet users watched online video content for an average of 13.6 hours per viewer, according to comScore.
The latest comScore stats reveal that the total U.S. Internet audience is engaged in more than 5 billion viewing sessions during the month. Google sites, driven primarily by video views at YouTube.com, took the No. 1 slot for content property with 141.1 million unique viewers. Microsoft sites followed -- up from No. 7, with 48.8 million viewers. Yahoo sites had 46.7 million viewers. Facebook came in No. 4 with nearly 46.7 million viewers.
A recent joint study from Google DoubleClick and Digiday found that buyers have begun to embrace RTB. In fact, 88% plan to purchase ad space via RTB platforms in 2011, up 16% from last year. The demand for more formats, including video, to move toward RTB also continues to increase. 18% of buyers to said they plan to use RTB for in-stream video this year.
Google tapped technology from the RTB platform on the display ad network for video, Spencer explains. The ability to easily transact bids will determine success. Once successful, DoubleClick will increase the types of available formats and publisher inventory.