Predicting the Future of Display Ads

Dec 16, 2010

As with most things on the Internet, change is inevitable. The same goes for display advertisements. It might seem difficult to accept, but most personal, non-profit and online business websites are not actively advertising through web marketing campaigns. Video ads seem something basic to most people in society because we have experienced them on the television. However, the Internet is still a fresh medium that web developers are still exploring and testing. The new era of how people experience rich media is about to greatly influence what is to come for display ads.

It is the time of the mobile connection. Television advertisements worked very well because they were the best, visually stimulating form of advertisement. The Internet is still decades behind the number of years T.V has had to impact our society, but it is catching up fast. Not just commanding a larger portion of daily habits, but also transferring those habits to unexpected mediums, like smart phones. The combination of smart phones with the emerging avalanche that is social media has driven the focus of human connection to social networks. Everyone who is online is in a social network. The wave is literally changing the habits of society. With so much focus on what is displayed online now, it was a matter of time before companies switched form text and banner ads to full blown, top-notch, rich media presentations. According to Barry Salzman, managing director of media and platforms at Google, 50% of display ads online will be rich media by 2015.

You think there are a lot of videos to view now on the Internet? Even now, the groundwork for the massive wave of interactive display ads is being laid. Soon, about 50% of online ads will have video in them and be bought on a cost-per-view basis. Today, 24 hours of video content are uploaded to YouTube each minute. Google has already launched two YouTube video formats, TrueView, based on a cost-per-view advertising model after dabbling in it for nearly a year. This means advertisers only pay when consumers chose to watch the advertisement. Finally, pay-per-view has been flipped into a cost to the business! Perhaps unfortunately for the consumers, this trend towards interactive rich media is likely to be unstoppable.

Google advertisers have increased the amount they spend annually with the technology company about 75 percent, during the last year. That’s a lot of new and current clients with Google paying for ever increasing amounts of advertising for their online businesses. The experts over there also predict that, by 2015, display advertising will become a $50 billion industry.

Soon, T.V will have a real rival.

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