Overview of the real-time bidding (RTB) market in the US

Technavio’s market research analyst predicts the real-time bidding (RTB) market in the US to grow at a CAGR of around 25% by 2020. In recent times, the digital marketing campaigns are overtaking traditional advertising strategies, as they reach audience within a short timeframe. Such marketing campaigns are more viewed and provide enormous opportunities for small and medium-sized businesses. Digital marketing strategies like RTB marketing enable campaigners to monitor the effectiveness of advertisements in real time, as the reaction results are easily attainable. Also, the campaigners can easily measure the effectiveness of the campaign based on the profile of the visitor, without requiring additional investment. The growing importance of digital marketing will increase the efficiency of future campaigns, thereby resulting in the real-time bidding market growth in the coming years.

According to this market research analysis, the rise in the number of ad exchange platforms is one of the key RTB market trends gaining popularity across the world. Several platforms like Google, Yahoo, and Facebook have opened their inventories to RTB-based advertising. These advertising platforms help to optimize ads by enabling Yahoo and Google to place relevant ads in their inventory. Facebook has launched its ad exchange platform. With a large number of visitors logging in to Facebook every second, it is expected to drive the US RTB market during the forecast period.

RTB market segmentation by type of auction and the industry analysis

• Open auction
• Invitation-only auction

Open auctions accounted for around 91% of the total revenue generated in the RTB market in the US during 2015 and will continue to be the leading source of revenue during the forecast period. The open auction is a public sale platform, where publishers allow buyers to participate in the online auction. The buyer assesses the available inventory and bids accordingly. With an increasing number of advertisers venturing into the digital segment, the publishers have the opportunity to get the best price for their inventory through open auctions.

RTB market segmentation by type of ad

• Image ads
• Video ads

Video ads will be the fastest-growing segment of the RTB market in the US and is expected to grow at a high CAGR of more than 58% by 2020. The increase in the online video audience has propelled many companies to invest in online video advertising. With the availability of the latest versions of smartphones and tablets and easy access to the internet, consumers are spending more time watching online videos on these platforms. Moreover, as the RTB uses an audience-based model to target the desired audience profile, this segment is expected to witness impressive growth in the coming years.

Competitive landscape and key vendors

The market is fragmented with the presence of a large number of the suppliers. Intense competition prevails in this market due to the rapidly growing number of vendors. Competition is more intense in developed markets such as North America and Europe, while in the Asia-Pacific (APAC) and the other emerging markets, publishers and advertisers have not completely adopted the programmatic platform. Competition in the market will intensify further with the emergence of more players.

Key vendors in the market are -

• ONE by AOL
• BrightRoll
• SpotXchange
• Tremor Video
• TubeMogul

Other prominent vendors in the RTB market in the US include Adconion Media Group, AppNexus, Convertro, Criteo, Dárriens Media Exchange, Facebook, Google, Kontera, LiveRail, Microsoft, Platform One, Rocket Fuel, Rubicon Project, and StickyADS.tv.

Key questions answered in the report include

• What will the RTB market size and the growth rate be in 2020?
• What are the key factors driving the RTB market in the US?
• What are the key RTB market trends impacting the growth  in the US?
• What are the challenges to the RTB market growth?
• Who are the key vendors in the RTB market in the US?
• What are the market opportunities and threats faced by the vendors in the RTB market in the US?
• Trending factors influencing the RTB market shares of the US.
• What are the key outcomes of the five forces analysis of the RTB market in the US?

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Related reports:

• Global Programmatic Advertising Spending Market 2016-2020
• Global Mobile Ad Spending Market 2016-2020
• Global RTB Market 2015-2019