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Navigating the Growth and Future of Real-Time Bidding

Written on
Jun 5, 2014 
Author
Ajitpal Pannu  |

ADOTAS – The buzzword in mobile display and digital marketing across the globe has become Real-Time Bidding (RTB).

As systems and processes continue to mature, every year we see RTB and programmatic buying consume a larger piece of the total ad spend. The rest of this article is dedicated to explaining what accounts for this growth and what the future holds for RTB.

More advertisers, publishers are leveraging programmatic buying

According to recent findings[1] compiled from global mobile RTB exchange data, auctions, bids and impressions, RTB ad spend continues to rise in 2014, with the aggregated RTB performance experiencing an uplift of 459% compared to this same time last year.

This shows an increased advertiser interest in mobile programmatic buying and a clear signal that the global spend on mobile RTB will increase even more as 2014 progresses.

Mobile RTB will remain the growth engine for digital advertising spend in 2014

The U.S. continues to lead RTB ad spend capturing 66% of the total RTB revenue, followed by the United Kingdom and Italy. Certain countries worldwide have seen the largest percentage increase in ad spend; some of the notable countries are: Turkey (225%), South Africa (190%), Brazil (104%), Mexico (88%) and Spain (77%) in Q1 2014.

With such percentage increases, the remainder of 2014 going forward will see the global playing field even out more so, as RTB ad spend becomes more prevalent in more and more countries.

Entertainment and Technology are the top spending advertiser categories

Entertainment and media still generate the highest RTB ad spend with 37%, followed by technology and telecom (24%) and business and finance (11%).

While entertainment and media reign supreme, mobile gaming at 13% is one to watch as 2014 goes by. This is proof that mobile gaming is becoming a major advertising category and vertical.

The key to RTB performance remains constant

When bid requests were equipped with granular audience data passed through apps and mobile websites ad request, eCPMs increased more than 200%, and fill rates went up by 68%. A majority of the mobile growth is driven by global brands interested in buying targeted audiences based on standard data parameters across EMEA, APAC and the Americas.

As 2014 moves forward, it is still audiences and data as the key to RTB performance. The technological advances of ad exchanges help mobile publishers and advertisers to better match messages with their target groups.

Parting Thoughts

Mobile RTB will be the foundation of all mobile advertising transactions, as it provides advertisers and brands instant access to massive global mobile inventory in real time.

As the year rolls on, advances in mobile technology such as publisher controls around 1st and 3rd party data and access to global audiences on global RTB exchanges will have a big impact on advertising spend and costs. The evolution of mobile RTB trading and elimination of format dependencies through programmatic platforms and education will shape the process of the mobile industry in 2014.

[1]Mobile RTB Insights Report 2014, Smaato





Ajitpal Pannu is Chief Strategy Officer at Smaato, the leading global mobile Real-Time Bidding (RTB) ad exchange (SMX) and Supply Side Platform (SSP). Pannu has a strong background in business development and product strategy from digital advertising technology companies such as OpenX, AdaptiveAds, Adify and Google DoubleClick.

During his tenure at OpenX, a leader in monetization platforms for publishers and one of the top global RTB exchanges, Pannu was a key member of the business team helping build premium publishers and a growing RTB marketplace to a leadership position. Over the course of three years, OpenX’s online RTB exchange grew by more than 200% YOY.

At Smaato, Pannu helps maintain a similar growth in mobile RTB and drives the core business and product strategy for its supply and demand business. Pannu majored in Finance at Cal State East Bay in the San Francisco bay area.

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