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Andrew Moore, EMEA MD of SpotXchange.
There is a distinct lack of premium video inventory available to RTB buyers in the UK and as a result, premium publishers are missing the opportunity to capitalise on this high growth area and drive incremental revenue.
A recent study by Forrester showed that 15% of all online video advertising in the US is bought via RTB and this is set to increase to 21% in 2013. This puts video RTB penetration at a similar level to display. So isn’t it time for publishers to take a long hard look at this rapidly growing market sector?
DSPs and agency trading desks are now establishing their own video budgets. However, as demand is building for video RTB, the biggest challenge for buyers is accessing premium, local inventory. So why is that?
Simply put, premium publishers are yet to recognise the opportunity and RTB buyers need to be more explicit in demonstrating it.
If you were to describe the perfect marketplace for a seller, it would be one where there is a lack of supply, or competition, and an abundance of demand.
For a premium publisher, this perfectly describes the video RTB opportunity today - quite different to the display RTB marketplace.
So how can a publisher capitalise on this?
Publishers have a greater array of options to tap into this growing marketplace and most importantly, they remain in control.
At SpotXchange we see publishers using the open marketplace to test the RTB demand for their inventory by setting floor prices in-line with their direct sold rate card. Publishers that have experimented with this approach are clearing inventory (up to 20%) at, or above their rate card.
The other area of adoption we have seen is where publishers create their own Private marketplaces using a technology platform to enable them to trade directly with DSPs and agency trading desks. The publisher sets the floor price, determines who has access to their inventory and critically, they retain the direct relationship with the buyer.
The buying and selling of online media is undergoing a seismic shift and whatever approach the premium publisher takes, it is important to understand the opportunity, have a strategy and not to get left behind.