Programmatic buying captures half of all US online display, Lifestreet Media enters mobile RTB, and more
Halloween is here, which begs the question: trick or treat? With the news that the iOS App Store hit over a million apps and Apple has paid out a whopping $13 billion dollars in ad revenues to developers, it’s safe to say that October has brought the app economy plenty of treats. And with Juniper Research finding that in-app advertising is the fastest growing area in mobile ads, the treats only keep coming. The trick, however, lies in finding the best method to buy advertising on these rapidly growing platforms: direct or via Real-Time Bidding (RTB). According to a recent analysis by Magna Global, programmatic buying is growing at an explosive rate. Lifestreet Media’s very own Adam Landis claims that RTB is on an unstoppable trajectory, and Lifestreet Media itself has entered the mobile RTB world to directly benefit its advertiser and publisher customers. Perhaps there’s actually no trick at all.
- According to an analysis released by Magna Global, a unit of Interpublic’s Mediabrands, programmatic buying is growing at a rate that doubles their initiate estimate from the beginning of the year. Programmatic buying – the automated purchasing of media via online advertising exchanges – now represents more than half (53%) of all online display ad buys in the U.S. advertising marketplace. This expansion is now projected to reach $7.4 billion this year, more than doubling the original estimate of $3.4 billion in 2013. At this trajectory, Magna projects that programmatic buying will rise to $17 billion by 2017, with programmatic buying representing 87% of display, 69% of video, and 88% of all mobile advertising buys. Furthermore, the analysis estimates that auction-based real-time bidding (RTB) buys represent more than half of the programmatic total; this implies that increased “direct” buys among publishers, advertisers, and agencies will increasingly occur through exchange-based technology.
- In a VentureBeat article this month, Lifestreet Media’s Adam Landis discusses the inevitable rise of RTB, especially in the mobile landscape. Landis acknowledges that the growth of RTB can leave both advertisers and publishers feeling uncertain. Landis assures both sides that RTB will benefit all of them as a more “transparent, frictionless and efficient” way to buy inventory. The main benefit of RTB for mobile advertisers is transparency, according to Landis. He writes that “individual ad-buys are now attributable to a return on the investment spend. This allows advertisers to more confidently direct their advertising budgets towards mobile media dollars.” The benefits may seem less obvious in the beginning for mobile publishers, but with the right tips the benefits will soon become clearer. Landis gives publishers three tips for realizing the benefits of RTB:
- Segment your ad inventory as granularly as possible to maximize demand competition.
- Determine the types of traffic your partners actually want, and expose this inventory to competition.
- Work with your ad providers when setting price ranges in order to achieve the maximum return in revenue for your traffic — not just the highest CPMs.
With the right toolset, both publishers and advertisers will benefit from a more transparent and efficient marketplace.
- This month Lifestreet Media announced the general release of its RevJet Mobile RTB Platform. LifeStreet’s entrance into RTB directly benefits the company’s advertising and publishing customers. Mobile advertisers benefit from increased access to supply, while mobile publishers benefit from higher fill rates and significantly improved pricing for their inventory. According to LifeStreet Media Founder and CEO Mitchell Weisman, “We’ve become a leader in the highly competitive world of display advertising because of the power of our RevJet platform to increase the revenue yields of ad impressions.” Weisman further elaborates on Lifestreet’s entrance into RTB: “With the release of the RevJet Mobile RTB Platform, we capitalize on the intersection of two of the biggest opportunities in digital advertising today: RTB and mobile. Given the stellar growth of RTB and programmatic buying, we’re absolutely thrilled to extend RevJet’s optimization and monetization power to even more advertisers and publishers through these dynamic marketplaces.”
Given the clear rise in programmatic buying, it’s easy to see that there’s no trick when it comes to display advertising: RTB is an integral part of the equation.