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BizReport : Advertising archives : October 17, 2011

RTB spending to surpass $6B by 2015

As people across the globe become connected to the Internet, advertisers are pushing more dollars into a specific area: real-time bidding (RTB). According to a new PubMatic report the global RTB spend should surpass $6 billion by 2015 as advertisers look to serve the global consumer base more relevant ads for a more reasonable price.

by Kristina Knight

"Spending on RTB will grow not just for indirectly sold inventory - premium inventory will also be sold via RTB on a much greater scale in the near future," said Rajeev Goel, Co-Founder and CEO of PubMatic. "The benefits of automation are clear for all parties in the display ecosystem."

The big draw of RTB ad options is relevance and its promise of higher campaign ROI. In the US the study predicts RTB spending will account for about 27% of the ad spend by 2015. The UK, France and Germany are also expected to be high on the RTB scale. Researchers predict direct sales will contribute to about 15% of the RTB spend.

According to information from IgnitionOne, display ads have seen a bit of a resurgence through Q3 2011, increasing just over 20% Year over Year (YoY) while the CPM dropped about 23%. Display impressions, meanwhile, increased nearly 60%. Much of this increase is attributed to RTB options which help advertisers buy ads for less cash.

"For the past 15 years, display advertising has been clunky, static and has largely underwhelmed advertisers," said Josh McFarland, TellApart CEO. "Innovative technologies are injecting new life into are more personalized, relevant and targeted to individual shoppers. When done correctly [display advertising] can become a retailer's more profitable marketing channel."

More from Josh tomorrow as we delve into how display could help etailers through the upcoming holiday shopping season.

Tags: ad forecast, advertising trends, display ads, IgnitionOne, online advertising, PubMatic, RTB advertising, TellApart

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