Great News for Web Publishers: Video Ad Spending Explodes



The global real-time bidding (RTB) expenditures on online video advertising is forecast to hit $1.14 billion in 2014, according to an independent consulting firm.

Additionally, the Forrester study commissioned by SpotXchange reveals real-time bidding will account for 24.7 percent of U.S. online video advertising spending.

Growing use of online videos was first reported in 2010 as videos continued to surge in popularity.

ID-10061404 AscensionDigitalThat’s when we also learned about the value of videos in e-mail marketing.

E-mail marketers planned to greatly increase use of videos, according to a study.

In the study “RTB Powers The Rapid Growth of Online Video,” Forrester found that over 2012, RTB has been the fastest growing segment of the online video advertising market.

It grew more than 100 percent from 2011 to 2012, and forecast to grow more than 70 percent in 2013.

Using Forrester’s online video forecast, 2012-2017 — interviews with online video buyers, sellers and technology providers — the research firm determined that U.S. online video RTB spending has and will continue to dramatically increase.

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

For 2013, Forrester predicts RTB spending will increase to $686 million and by 2014, RTB spending will increase to $1.14 billion – which represents a 284 percent increase since 2012.

Additional Findings – Definitions and Publisher Intent

The growth in online video advertising inventory practically mandates an automated solution and the definition of RTB continues to evolve from a bidding platform to a programmatic tool for the automated buying and selling of online video advertising.

RTB platforms will morph from bidding engines into real-time buying engines that base their decisioning on data and analytics such as audience targeting.

Other key findings from the study include:

— Online video is supplementing TV ad campaigns. While advertisers have begun to move a small percentage of TV budget to online video, those dollars represent a major influx of revenue into this green-field medium. As buyers learn how to fill in the gaps of campaigns, they will use RTB to maximize reach, frequency, or sales-lift gaps midflight.

— Programmatic buying mechanisms will continue to grow but diversify. As the online video vocabulary crystallizes and more parties understand programmatic buying, its adoption will be significant as a replacement to manual insertions.

— The marketplace will cleave along three fault lines: private vs. public; fixed-price vs. bidded; and premium vs. run of network.

— As the use of the platform shifts to buying impressions and placing ads using different pricing mechanisms, premium publishers’ interest in the automated aspects of the sale will become more enticing.

— Those premium publishers that have tested automated platforms are doing so primarily in private marketplaces, where they are able to test the impact on pricing, fill rate, and targeting on a limited and controlled basis.

“I believe that this study validates the vision we saw years ago on the promise of online video through the eyes of RTB and programmatic,” said Michael Shehan, president and CEO of SpotXchange.

“Buyers have recognized the inherent value and transparency that RTB and programmatic provides, but we’re bullish on making sure publishers realize the power of automation through private marketplaces and new tools that will put them on an even playing field with demand side platforms and agency trading desks,” he added.

From the Coach’s Corner, here are tips in using videos to turbo-charge your Web site’s popularity:

Technology does not drive change – it enables change.

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

Photo courtesy of AscensionDigital at www.freedigitalphotos.net

Seattle business consultant Terry Corbell provides high-performance management services and strategies.