Why Real-Time Bidding for Publishers

Real-time bidding (RTB) for video is one of the hottest areas in the digital ad business and it’s expected to explode in 2012. SpotXchange’s RTB for video solution allows advertisers to bid on an impression-by-impression basis for highly targeted video ad inventory made available through our auction-based marketplace.  In the past few months, we have seen the number of real-time bidding bid requests increase by 100% each month, with our marketplace seeing 15 billion bid requests per month.  This huge demand is driving higher CPMs for our publishers, and our preliminary data shows that publishers monetizing via RTB are enjoying an average 20% lift in CPM!

One recent report by eMarketer™ indicated that while less than one-third of publishers offered real-time bidding on their inventory in 2010, approximately 44% of publishers will have offered this service in 2011. The number of ads sold through real-time bidding advertising is a fairly low percentage of the overall $26 billion U.S. online advertising market. However, a recent study from Forrester Research predicted that RTB spending will increase 130% from 2011 to $823 million in 2012.

How RTB works in an auction-based ad exchange marketplace

Getting started with RTB is quick and easy for publishers.  And so is the programmatic process for how SpotXchange’s marketplace responds to an RTB ad request:

1. Marketplace calls all RTBpartners with bid requests containing information about the placement
2. RTBpartners ingest and valuate the bid request, deciding if and how much they are willing to pay to serve an impression on it
3. RTBpartners return bids to the SpotXchange marketplace
4. The creative belonging to the partner with the highest bid is returned to the publisher who serves the impression

With RTB, publishers have access to new buyers and campaigns without cannibalizing their existing channels since they maintain control over the pricing and sale of their inventory.  The increase in volume and competition allows publishers to be selective and get the prices they want.

SpotXchange is thereal time bidding advertising leader in video.  Let our proven experience help you receive higher CPMs while still maintaining control over the sale and pricing of your inventory.  Contact us today to start achieving higher CPMs.

Want to learn more about RTB?  Download our solution sheet here