Video marketing: real-time bidding on the rise?

By October 12, 2012
man typing on a computer with images flying by

RTB has been adapted to suit the needs of the video ad category, with success under proper monitoring. But some problems remain that impede the adoption of this nascent category of advertising.

While display ads have long been the cornerstone of online advertising, video formats may prove to be the channel to bring digital marketing into central focus for brands. Real-time bidding (RTB) -enabled video in particular provides unique opportunities over traditional network-based buying models, despite obstacles that are affecting their spread and adoption. A study commissioned in April by TubeMogul and conducted by Forrester Consulting showed that with more awareness of this format, brand marketers will see that RTB is “a mechanism for more effective digital video buying, management and optimization.”

Real time bidding makes video marketing more fluid and efficient…

RTB has become more prevalent with the building of ad exchanges, supply-side platforms and demand-side platforms (DSPs) that manage real-time inventory transactions. Previously these sales have mostly been display, but the practice is coming to video, mobile and social. The process has several benefits over previous forms of digital video buying: increased granularity (impressions are evaluated individually), deeper transparency (buyers can track media management), and greater fluidity (media optimization is constant rather than monthly or quarterly), improved efficiency (buying inventory more directly through a DSP can bring substantial savings), and direct control (buyers access media programs rather than rely on media partners).

…Despite some true challenges that remain

These qualities can lead to improved results when used with interaction metrics and branding studies. ROI has been favorable - one marketer realized a tripled investment for a client – but some obstacles have slowed adoption. Many publishers find inventory lacking – though clients want to do video, narrow parameters make available RTB buys in limited supply. Since premium inventory is limited, this contributes to a misconception that overall, RTB quality is subpar – since the remaining inventory is more mixed. RTB video buyers have also had difficulty in sufficiently measuring value, and tech has not yet been developed to the point that real-time buying is seamless. However, marketers can build better awareness for their clients and industry participants will see the effects of this nascent category's benefits.


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