When Google acquired DoubleClick in 2008, it was betting that real-time bidding -- and the ability to immediately reach customers as they move across the web -- would become an integral part of the advertising landscape.
Those days have finally arrived, and publishers and advertisers are betting that real-time bidding could revive the display market. Advertisers are paying an average of 130 percent more on ads sold through the DoubleClick exchange compared to ads sold through networks, The New York Times reports. Other publishers are commanding prices that are 50 percent higher when they sell space in real time as well.
Real-time bidding lets advertisers buy and serve ads on a consumer by consumer basis, basing their decisions and bid prices on a consumer's browsing and purchase history. Advertisers can buy ad space in the milliseconds between a consumer arriving at the page and the time it takes the full page to load.
Google unveiled its revived DoubleClick exchange in September, but it's not the only big player in the real-time game. Yahoo is currently experimenting with the process on its Right Media Exchange, while Microsoft sells ads in real time on its AdECN exchange.
The popularity of real-time bidding will be good news for the entire industry. Display spending dropped 2.3 percent last year, according to eMarketer. Meanwhile, spending on search, which uses similar bidding technology, rose 2.2 percent.
