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Tuesday, August 07, 2012
Real-time bidding (RTB) is changing online display advertising market, with revenues reaching $1.6 billion
Analysts Say RTB Could Revive Facebook’s Advertising Business
International market research firm Parks Associates says advertising revenues from real-time bidding (RTB), which allows companies to target consumer segments in real time, will reach $7 billion in North America by 2017. The independent research firm's report Real-time Bidding: The Online Ad Exchange reports RTB will account for 34% of all online display advertising revenues by 2017. Industry efforts such as Facebook Exchange, along with firms such as SpotXchange, Nexage, and Google that are opening their ad inventories to the RTB market, are significant factors driving growth.
“Facebook’s newly launched ad exchange is a driving force for RTB adoption and could help Facebook regain its market value as the social network serves approximately 33% of U.S. display ad impressions,” said Heather Way, research analyst, Parks Associates.
RTB refers to the complete process, including the technology infrastructure and management systems, that enables the automated purchase and placement of online display advertising to specific audience segments. This more efficient and targeted advertising method is an important tool for firms such as Facebook, which is struggling to monetize content, because RTB allows them to place more relevant ads in front of their members.
“RTB enablers offer greater transparency, control, and accuracy, so once media buyers realize the benefits and become familiar with the new ad buying and selling process, ad spend from traditional display advertising will quickly transfer to RTB platforms,” Way said. "Incumbent display ad sellers, such as ad networks, must integrate RTB capabilities to avoid losing market share."
However, the RTB process is not easily understood by the buyers of online display advertising.
"Ad agencies face multiple obstacles, including new media consumption and multidevice adoption, in an expanding and very complex business environment," Way said. "New ad markets such as RTB are difficult to navigate, and agency executives struggle to understand the inner workings of digital media and their impact on media campaigns.”
While there are several industry-sponsored RTB white papers available, Real-time Bidding: The Online Ad Exchange provides an independent market evaluation, including a holistic understanding of the emerging market, industry insight, and strategic direction for RTB stakeholders. In doing so, the report provides an in-depth analysis of the major business segments, profiles the key players, assesses factors defining market growth, and forecasts revenue growth for the next five years.
About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.
Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, and Smart Energy Summit: Engaging the Consumer.
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