Tuesday, 19 August 2014
RTB or Real Time Bidding, is really hotting up.
Basically it's an Ad Exchange that allows Advertising buyers (Agencies/Clients) buy online media from sellers (Media owners) in real time through a bidding or "auction" system.
APPNexus, the New York firm, has already raised 200 million usd in investment and just closed another late funding round giving it a valuation of 1.2 Billion usd. That's nearly doubled the company's value since Jan 2013.
30 Billion Ads are sold on APPNexus every single day.....and it's profitable. It estimates it will do 2 Billion usd in transactions this year and revenues of over 130 million usd. Pretty staggering and very mobile focused.
It also means that media companies are becoming very investor friendly and Wall Street opportune - they weren't always - because what they're doing is automating old world transactions and making them better. That's the key difference for good online businesses.
RTB is a better, more accurate, transparent way of buying space. It also moves the Agency Commission model away (no bad thing) into wholesale rates for media which are then charged on to clients so the opportunity to generate higher margins is easier.
However, the Internet experience is clearly one which cuts out the middleman whether they be booksellers, music stores or eh, Advertising Agencies. Clients will now have another option to train their staff to buy their own advertising online. And some are.
Video is another. As the online digital market rises and Clients create good video content, they need to place it. RTB is the way and Streamabout do that every day of the week