LOS ANGELES – October 12th, 2011 – Online publishing is thriving according to global research by Econsultancy and the Rubicon Project published today, with 73% of publishers saying online display advertising revenue has gone up in last year. Nearly half of publishers (44%) now sell their online display advertising via real-time bidding (RTB), which itself is delivering twenty percent more revenue to publishers. The research also found that two thirds (66%) of publishers sell inventory through online advertising networks.
the Rubicon Project, the US-based advertising technology company, commissioned Econsultancy to survey of more than 1,000 internet advertising professionals, including nearly 500 online publishers, sales houses and rep firms, in August and September 2011. The survey follows the publication of a companion report which delivered analysis of similar questions to advertisers and agencies.
Increasing Revenue for Publishers
A similar survey in 2009 found that only 53% of publishers had enjoyed increased display advertising revenues over the previous year. The research shows that supply-side platforms are playing a prominent role in the online advertising ecosystem where real-time bidding is becoming increasingly prevalent. Publishers cite the main benefits of working with supply-side platforms as the ability to open up inventory to RTB (58%), incremental revenue (54%) and extraction of greater value from inventory (48%).
Impact of RTB; Growth of Private Marketplaces
“The truth is in the data, and this report shows that RTB represents a watershed moment for publishers around the globe. RTB is having a positive impact on publishers’ cross-channel monetization strategy, and aligns squarely with the value advertisers are gaining,” said Kara Weber, SVP of Marketing at the Rubicon Project. “We predict that 2012 will mark the confluence of two key trends: a massive influx of new dollars coming online, accompanied and powered by RTB and the broader burst of innovation around the automation of digital ad buying and selling. And most importantly, publishers who leverage a single platform to control access to their inventory, and monetize that asset across all buying channels, can ensure that every impression is sold for the highest possible price.”
The Role of Online Advertising Networks
Econsultancy also surveyed online advertising networks around the world and discovered that 37% of online advertising networks are using RTB for both buying and selling inventory. Around a third (31%) are using RTB just for buying, while 7% are using real-time bidding just for selling. 60% of the ad networks surveyed revealed they buy inventory from other ad networks and 60% buy from online advertising exchanges.
For publishers working with ad networks:
Linus Gregoriadis, Econsultancy’s Research Director, added, “This research shows a positive commercial environment for publishers globally, with rate card prices holding steady or increasing for the vast majority of responding companies. Real-time bidding is creating opportunities for publishers who are having to adapt quickly to a fast-changing environment. Ad networks and exchanges continue to play an important role, while supply-side platforms are becoming increasingly influential in the marketplace.”
This is Econsultancy’s second Online Publishers Survey Report, produced in association with the Rubicon Project. The study, supported by the IAB UK, IAB France, IAB Europe and AOP, follows a similar piece of research carried out in 2009 and is based on a survey of over 1,000 online advertising professionals carried out in August and September 2011. This report is specifically focused on results from almost 500 publishers around the world. A copy of the full report will be available for download on Thursday, October 13th here.