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BizReport : Advertising archives : April 06, 2011

PubMatic: Brand advertisers want RTB options

When it comes to the online space, more brand advertisers are looking at real-time bidding (RTB) options. Rather than paying above premium prices or having no control over ad pricing, PubMatic's new report indicates that these marketers believe they will have more control over ad campaign costs with the addition of RTB options.

by Kristina Knight

pubmatic.png"Advertisers and agencies were very clear about wanting the ability to buy RTB campaigns directly from premium publishers because they get a guaranteed brand safe environment with the targeting sophistication of RTB," said Rajeev Goel, Co-Founder and CEO of PubMatic. "Private
Marketplaces are changing the way that display advertising is purchased - the precision targeting of RTB coupled with the transparency of direct publisher sales will significantly increase the size of the display advertising market."

According to PubMatic's findings:

• Most marketers (97%) will use anonymous audience targeting in 2011
• About half will ensure that most of their ad budget includes audience targeting
• 62% of advertisers want RTB options
• Only about 20% of publishers have available RTB inventory

Recently eMarketer forecasted that the online share of ad revenue would increase by 10% by 2015 (US), despite that prediction, it seems there is still plenty of growth for online advertising. The report shows that US consumers are spending about 25% of their time with online media but online receives less than 20% of the US ad spend.

"Those of us focused on the internet channel have complained for years that it hasn't been getting its fair share of media dollars based on time spent," said eMarketer CEO Geoff Ramsey. "However, the precise extent of that imbalance has been shrouded in mystery and exaggeration. Now we know--it's a gap of 6.5 percentage points."
It could be that more control over ad costs and more transparency in the space may bring more advertisers into the space.

Tags: ad forecast, advertising revenue, eMarketer, online advertising, PubMatic, real time bidding, RTB

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