The results are in: Real time bidding (RTB) has grown at a phenomenal rate and it is clear that it is the future of media buying. According to eMarketer, RTB spending in the United States will reach $7.1bn by 2016, nearly a third of the display ad market.
Advertisers engaging with RTB purchasing partners can only optimize media buys using simple attribution, and then only based on the activity within that partner. This means that the buying partner is not using the same metrics to optimize that the client is using to measure its performance.
RTB is an automated process
- Differential product pricing based on value is the norm everywhere.
- CPM should be based on ad impression’s likelihood to serve campaign objective – based on TG fit,intent, context etc.
- Every impression is unique! Why not “pay per impression” instead of CPM!
eMarketer estimates US advertisers will spend more than $3.36 billion on real-time bidding this year, up from just under $2 billion in 2012 and less than $1 billion in 2011. Spending on all digital display advertising, including banner, video, rich media and sponsorships, will grow far slower—at 18.1%—as penetration and use of RTB among media buyers and publishers increases.