In a recent Digiday article, George Odysseos of Tribal Fusion discusses real-time bidding (RTB) in advertising and provides a few interesting points of view regarding the topic. However, George's comment about buyers not willing to pay higher prices using RTB in an exchange environment to buy their inventory is simply not true. How do we know this? Because our SpotXchange RTB marketplace for video tells us so (we currently serve billions of bid requests each month). We find that RTB buyers seek relevance and quality, and they are willing to pay a premium for it. When this happens, both advertisers and publishers win. Our marketplace gives loads of benefits to publishers and advertisers, and we heartily believe it's a win-win for both parties. For publishers, RTB allows them to charge higher CPMs because of the increased, auction-based competition for that inventory. The market decides the appropriate value of a bid. One of the main benefits for advertisers is that RTB allows them to cherry-pick only their highly desired audiences and opportunities, thus eliminating waste and inefficiency. We've found that advertisers pass on 95 percent of RTB bid opportunities. As a result, they're willing to pay more for that top, very select inventory, especially on premium sites. To provide context, RTB is similar to how Google AdWords works in search. Marketers have the opportunity to choose the keywords that will be most valuable to them to produce qualified leads. The more targeted and specific the word to their goals, (such as "online video advertising"versus just "advertising") the more a marketer is willing to pay, because they know this combination will provide better results. Market dynamics prove time and again that high-demand inventory fetches higher prices. Quality wins. This may be bad news for some long-tail publishers that have enjoyed being bundled with more premium sites in opaque, ad-network-brokered deals designed to boost their eCPMS. There is nothing opaque about SpotXchange's RTB marketplace. Net-net, RTB exchanges increase transparency and give buyers the ability to price their placements appropriately. Over time this puts pressure on long-tail publishers to develop better content and have fewer ads on their sites. This is ultimately what drives more site traffic and improves the overall user experience, which will result in more demand for their video inventory. We normally don't like to call out others in the market, but there are times when it's necessary. We like George and Tribal Fusion. We just philosophically disagree. If you want to learn more about why SpotXchange is able to fetch premium prices via our industry leading RTB platform, give us a call! | 
