RTB In Online Video Ads To Hit $1B By 2014

By 2014, real-time bidding in online video advertising will account for 24.7% of all U.S. online video spending -- or $1.14 billion.

Over the past year, Forrester Consulting found that RTB has been the fastest-growing segment of the online video advertising market -- growing more than 100% from 2011 to 2012, and forecast to grow more than 70% in 2013.

The report was commissioned by SpotXchange, a large marketer of digital video ad inventory, which recently reported that its own RTB business saw a 596% increase in global bid requests from 2011 to 2012.

“Buyers have recognized the inherent value and transparency that RTB and programmatic provides,” Michael Shehan, president and CEO of SpotXchange, said regarding the strong forecast.

In addition to growth in bid requests and revenue, SpotXchange said its RTB marketplace experienced a tenfold increase in global RTB impressions from 2011 to 2012 -- including a 35% increase in Europe.

In 2012, U.S. online video RTB spending accounted for $402 million, exceeding 2011’s estimate of growth, per Forrester.

For 2013, Forrester predicts RTB spending will increase to $686 million, and by 2014, RTB spending will rise to $1.14 billion -- which would represent a 284% increase since 2012.

In addition to growth, Forrester predicts programmatic buying mechanisms will continue to diversify.

Overall, as the use of the platforms shift to buying impressions and placing ads using different pricing mechanisms, premium publishers’ interest in the automated aspects of sales is expected to increase.


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