News Limited has begun selling its domestic online advertising inventory via real-time bidding for the first time.

News announced yesterday that a number of media agencies are already trading on the network, which will be managed by Rubicon Project’s REVV platform – the same ad trading platform it uses internationally.

Seen by many as the future of online advertising, real time bidding enables publishers to sell inventory to media buyers through a live bidding process.

Read: Marketing‘s feature on the future of online advertising and automated trading.

News says the platform will drive up publisher yields while improving the effectiveness of advertiser campaigns. Initially, the private exchange will be offered by invite only across 11 key categories including lifestyle, business, entertainment, news and sport, across its domestic digital network.

Announcing the move, News revealed that all agencies invited so far accepted the invitation to participate and are currently actively trading on the platform.

Head of commercial development at News, Jason Barnes, says, “The opportunity to sell our advertising through real-time bidding engages new advertisers with our brands, increases yield, improves efficiency and in-turn increases profitability.”

Real-time bidding continues to grow internationally. In the US by 2015, it is expected that 27% of online advertising revenue will come from real-time bidding, a trend expected to be mirrored by the local market.

Rubicon Project’s international GM Jay Stevens says the introduction of automated trading to News’ domestic network is a ground-breaking move for the market. “News has been an anchor publisher for Rubicon Project for more than three years, leveraging REVV to maximise the value of their international traffic.”

“We have a great opportunity to shape the real-time advertising trading landscape here in Australia and the market is well positioned to take advantage of the efficiencies that real-time trading affords.”