Report: Facebook Exchange seen as key influence on real-time bidding growth


By Brittany Darwell Comment

Advertising spending through real-time bidding is expected to nearly double this year, and the maturation of the Facebook Exchange likely to be a key influence on future growth in the industry, eMarketer reports.

Real-time bidding is a form of programatic buying where advertisers bid on each ad impression as it is served. Facebook entered the RTB market in June with its Facebook Exchange. Through the exchange, approved third-party platforms (DSPs) can place retargeting ads on Facebook after users visit external websites marked with cookies.

eMarketer’s report says real-time bidding will account for 13 percent of all U.S. display advertising spending this year, more than triple its share in 2010. The overall U.S. display ad market will grow 21.5 percent to $14.98 billion compared to $12.33 billion in 2011. RTB spending grew 98 percent to an estimated $1.9 billion this year, the report says. eMarketer predicts that by 2016, U.S. RTB ad spending will reach $7.1 billion.

This bodes well for the Facebook Exchange, also known as FBX, which marketers have been speaking highly of since it launched this summer. Early partners are reporting lower costs per acquisition than on other exchanges, and many advertisers are pleased that their ads appear above the fold and on brand-safe pages, which is not always the case with other exchanges where advertisers can’t be sure where their ads are being placed or how many others they’re competing against. The Facebook environment is much more controlled.

eMarketer says there are four key influences that will determine the growth of RTB, including the maturation of FBX. Other factors include the availability of video and mobile inventory, more premium ad inventory and an demand for better transparency across all display advertising.