Vicki Lyon, Managing Director SpotXchange Asia-Pacific on why real-time bidding is a win-win for advertisers and publishers.

It is not surprising that advertisers are moving more of their ad dollars into Online Video, with Frost and Sullivan predicting Australian video expenditure to increase from $33m to $350m in three years and we are also seeing publishers looking to cash in.

Real-Time Bidding (RTB) for video is gaining traction in Australia and Asia-Pacific. Publishers, and in particularly Advertisers, are becoming more aware of the effectiveness and convenience that RTB offers. Just like RTB for display, it will revolutionise the way online video inventory is bought.

RTB: A win for advertisers and a win for publishers.

Online video offers an engaging experience for consumers that translates into the potential for high-quality advertising impressions from desirable audiences that can be delivered at scale.

RTB helps advertisers eliminate waste, increase performance and simplify the media trading process. Advertisers can enjoy real-time control over executing targeted campaigns and more efficient buys. Demand for RTB-enabled video is growing exponentially and this will continue as agencies, their trading desks and DSPs all look to adopt programmatic buying beyond just display.

Through RTB, publishers can demonstrate the value of their audiences to advertisers and gain access to a new channel of RTB buyers including DSPs, ad networks, agencies and trading desks. This helps publishers achieve higher yields and CPMs since there’s more competition for their inventory and as a result publishers are able to bring more of their inventory into the marketplace.

Keeping up with demand is a welcome challenge and we see ourselves now assisting publishers to create RTB-enabled Private Marketplaces for video. A private marketplace is simply an agreement where a publisher allows select advertising partners to access their inventory via RTB integration.

Publishers like this option because it passes control back to them in terms of price, chosen advertisers and insights, all in real-time. Maintaining control remains key and establishing a private marketplace provides an effective solution to protect yield and avoid channel conflict. With the publisher in control of the end-to-end process, they also maintain the direct relationship with the buyer and therefore can use RTB access to drive greater spend. Advertisers are benefiting from RTB because they have access to more premium video inventory.

Publishers who are able to capitalise on this shift towards RTB will benefit from early mover advantage - they will develop the skills and knowledge to compete effectively in this new world ahead of the market.

Our clients are using online video in conjunction with display to maximise reach and engagement. Since May of 2011, we have observed an increase of more than 120 per cent in real-time bid requests across SpotXchange as a whole and our RTB partners receive over five billion ad calls each month.

Ultimately, RTB will impact on all areas of online display and increasingly video will be bought in this way. Therefore, we at SpotXchange believe this change in the market represents a real opportunity for publishers to take the lead at a time when advertisers are looking to build partnerships related to video advertising.

Vicki Lyon is speaking at the ExchangeWire Ad Trading Summit (ATS) event in Sydney on March 13.

Attendees can expect Vicky to discuss: RTB in Online Video is a Win for Advertisers and a Win for Publishers

- How does RTB work in video and who is starting to use it?
- Why is it becoming a key buying strategy for advertisers?
- How do premium publishers benefit from RTB and a private marketplace model – are they truly seeing higher CPMs?

Learn How Media Buying Is Changing at ATS Sydney March 13 – EarlyBird Tickets Now Available to ATS Sydney March 13

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