Real-Time Bidding

Real-Time Bidding

Real-time bidding, also known as RTB is a programmatic advertising technique that enables clients to bid for and purchase digital ad space without delay and get the opportunity to make transactions of digital advertising space across the web. It takes only several milliseconds, which happens when users interact with the material available online and allows advertisers to deliver advertisements to audiences of interest. The use of RTB means that brands can fine-tune their advertising placements, improve relevancy, and by extension the general performance of brands in their campaign all without the added pressure of expensive media bills.

The Real-Time Bidding Market is expected to grow with a significant CAGR of 19% during the forecast period (2024-2032). This is mainly due to the increasing mobile and video consumption that would give advertisers a way to engage with target consumers in devices and formats. The rise in mobile advertising expenditure and the need for effective programmatic technologies, such as RTB, exist, resulting in the growing usage. The rising focus on data privacy and protection laws including the GDPR and the CCPA, RTB platform providers have had to up their game on compliance and adaptation measures affective consumer targeting by advertisers. Furthermore, the integration of various platforms requires advertisers to overrule and regulate RTB at different digital touchpoints.

• Based on the auction type, the market is segmented into open auction, and invitation auction. The open auction held a significant share of the market in 2023. They offer advertisers a transparent and efficient platform from which to bid for digital advertising space in real-time. They are cost-effective, flexible in budgeting and bidding, provide access to multiple audiences, and are available on the web, applications, and other platforms. The modularity of open auctions makes the technology more attractive to more brands since they can make further placements of RTB ad buys based on real-time performance data and thus improve the relevance of the advertising. For example, in June 2023, Czech company Caroda, in collaboration with the South African branch of Adform and media agency Trina Marketing, launched the first open marketplace in the in-store Digital-Out-Of-Home (DOOH) advertising network in South Africa. This is being taken forward via a programmatic open auction.
• Based on format, the market is segmented into RTB image and RTB video. RTB's image held a significant share of the market in 2023. The RTB image segment contributes to growth by enabling advertisers to utilize visual content to gain audience attention in real time efficiently. The use of high-quality images in ads makes it appealing to attract more people to click and be more aware of the brand. Since images are highly effective for viral marketing social networking and other graphical environments, the major application of RTB is used for the placement of interest-based image commercials. The appearance also ensures that companies target the intended audiences effectively by leveraging picture-based communications. For instance, Google, Criteo, and The Trade Desk are always on the frontline in the use of RTB for image advertising to maximize the engagement of the customers.
• Based on devices, the market is segmented into mobile, desktop, and others. Mobile held a significant market share in 2023. The high engagement rates of mobile phones make it possible for companies to adjust bids for ads in apps, websites, and social networks timely to gain users’ attention. Mobile RTB has the potential to grow the way in helping target audiences that are actively using their handheld devices to browse, interact socially, and shop. Moreover, mobile RTB further identifies niches such as geographical location, browsing history, or app usage greatly improving the ad relevance.
• Based on the application, the market is segmented into media & entertainment, games, retail & e-commerce, travel and luxury, mobile apps, and others. Media & Entertainment is expected to grow with a significant CAGR during the forecast period (2024-2032). This sector uses RTB to take advantage of video and streaming platforms, which have a huge and highly interested audience. RTB enables companies within this context to place a targeted video or display adverts on viewers’ preferred content and the style they wield. With the advancement in streaming service providers, RTB is then employed by media companies to benchmark the ad spots, thus presenting the program to the viewers across devices and relevant ads.
• For a better understanding of the market adoption of Real-Time Bidding, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is expected to grow with a significant CAGR during the forecast period (2024-2032). APAC region has a high impact due to the growing digital advertising market within the region and ever-growing internet usage. As the number of middle-class consumers rises and ownership of mobile devices continues to grow in countries such as China, India, and the countries in Southeast Asia, there is an ever-growing adoption of RTB for advertising to desirable audiences. The growing number of electronics sales platforms results in a vast amount of ad space available and contributes to the implementation of programmatic advertising systems. Furthermore, local players on this front are refining the quality of RTB campaigns through Big Data, as well as the implementation of more sophisticated data and machine learning. For instance, on 12 June 2023, JCDecaux Singapore (JCDecaux), the number one out-of-home (OOH) media company, announced the launch of its Real-Time Bidding capability via VIOOH, the leading premium global supply side platform, to accelerate the strong growth of programmatic OOH (pDOOH). This cutting-edge technology changes the way advertisers engage with consumers, making digital OOH advertising more targeted, efficient, and impactful than ever before.
• Some of the major players operating in the market include Microsoft, Adobe (Adobe Advertising Cloud), The Trade Desk, Google (Google Ad Manager), Criteo, YANDEX LLC, Verve Group, Inc., Digital Turbine, Inc., SmartyAds, Zeta Global Corp.