Google’s DoubleClick has begun testing in-stream video ads on YouTube, allowing Ad Exchange buyers at a handful of companies to use real-time bidding (RTB) technology to purchase ads. The plan to eventually expand to other sites and platforms across the Web should give advertisers access to better inventory.
The RTB auction model allows advertisers to purchase ad space per impression, rather than in bulk or in buckets of 1,000 impressions. “We think the exchange, which has been growing tremendously, makes the process better,” explains Scott Spencer, director of product management at Google’s DoubleClick. Citing eMarketer May 2010 stats, he said: “More dollars are flowing into online video, and we expect the spending on video ads to more than double from about $2.1 billion in 2011 to more than $5.5 billion in 2014.”