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Ad Spending on Real-Time Bidding will Reach $7.1B


What is advertiser Real-Time Bidding (RTB) and why does it matter to online marketers? Who benefits from real-time advertising buying? What factors and industry trends will affect future RTB growth? These are the key questions that eMarketer considered during their latest market study.

Real-time bidding will account for 13 percent of all U.S. display advertising spend in 2012 -- that's more than triple the market share in 2010, according to the eMarketer assessment.

Over the next few years, RTB will continue to gain momentum and share of online advertiser spend -- accounting for a quarter of the display market in 2015 -- as more media buyers and publishers benefit from its efficiencies.

This year, the overall American display advertising market will grow by 21.5 percent to $14.98 billion -- that's compared with $12.33 billion in 2011, according to eMarketer estimates. In the same year, growth in RTB spending, at 98 percent, will easily outpace display advertising.

Market research firms estimate that U.S. RTB digital display ad spending will total between $1.1 billion and $2.1 billion this year, driven by improvements in RTB technology and increased investment from both media buyers and online publishers.

eMarketer forecasts RTB ad spending will reach $1.9 billion in 2012 as both publishers and media buyers continue to adopt RTB technology. Beyond 2013, growth rates will slow as the programmatic buying landscape settles and matures. That being said, by 2016 American RTB ad spending is forecast to reach $7.1 billion.

There are four key influences that will determine the growth of RTB: maturation of the Facebook private ad exchange (FBX), an expected influx of video and mobile inventory, an anticipated greater availability of premium advertising inventory and an overarching demand for better transparency for all of digital display -- not just RTB.

eMarketer believes that as national and global brands look to programmatic buying to more efficiently identify and reach their target audiences for brand-lift measures, an influx of more brand marketing budget is also expected to fuel RTB ad spending.

Anticipated advancements in display ad placement transparency and in-view accountability, as well as a rise in the amount of premium inventory made available through exchange channels, will help pave the path to entry for some branding-conscious marketers.

eMarketer forms its forecast through an analysis of estimates from other research firms; survey results from brands, agencies and media publishers; digital and mobile advertising spending trends.

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