Independent video ad platform BrightRoll is partnering with global interconnection and data center company Equinix to release VideoRTB+, a real time bidding (RTB) solution reduce latency and lower bidding times for online video ads.
VideoRTB+, which is currently being offered inside Equinix data centers, connects ad exchanges with ad markets with expected results of faster, more efficient digital video advertising delivery. By increasing the speed with which digital video ad bidders can review, analyze and bid upon video ad inventory (the process already takes place in less than one second), the companies say bidders are enabled to make more bids within deadlines while ad sellers can generate more revenue. The solution reduces latency, the time taken for information to travel between bidder and ad exchange, by directly connecting bidders to the BrightRoll Exchange (BRX).
RTB Gains Popularity
RTB is quickly gaining popularity as a means of purchasing digital video advertising, according to statistics from eMarketer. An eMarketer study shows that in 2012 the number of video ad impressions bought via RTB exchanges more than doubled year over year from 26.5 billion to 56.1 billion. During 2013, eMarketer predicts the number of video impressions will almost double again, topping 100 billion.
eMarketer also cites Forrester projections that spending on video ads bought via RTB will reach US$ 686 million this year and top US$ 1 billion in 2014. At that point, RTB spending on the format will account for nearly one-quarter of digital video outlays.
Online Video Increases, Video Ad Dollars Follow
RTB popularity is undoubtedly being driven by a general increase in the popularity of online video among consumers. In July 2012, comScore reported that on average, there are almost 180 million unique viewers of video per month, and perhaps more importantly, their level of engagement continues to climb. Online video consumption isn’t limited to traditional PCs. Users are watching video on their TVs. Video consumption on tablets and smartphones is also showing significant growth.
Google Sites (mainly YouTube) and Yahoo are the leading online video platforms, but consumers are also increasingly viewing TV online, making digital video advertising even more important. Even when people use televisions as a device, they use connected devices to access Internet-based content via Netflix, Hulu, YouTube and other digital providers. Almost 85% of the US Internet audience viewed online video in June 2012. As CMSWire stated at the time, “We are quickly moving to a future where Internet viewing is the norm and traditional network programming is a significantly lagging second.”
The initial BrightRoll deployment is available in Equinix’s Silicon Valley and Ashburn data centers, with plans for international expansion across Platform Equinix.