I’ve said it before, the display online advertising industry is still growing – search is an incredible marketing and lead generation tool, but nothing can better project your brand online than rich media display ads (often expandable and page takeover banner advertising).
Today my sources are DoubleClick, Forrester Research and of course the ever present Google but this blog post was inspired by Business 2 Community’s article about internet marketing taking marketing budget away from TV spend.
According to DoubleClick, display online advertising will grow 19% this year and video display advertising has grown a massive 38%. This has been put down to improved targeting and better measurement but compared to TV, online has always had this in spades. I game across adserving post click and post view spotlight tagging measurement in 2004 and behavioural targeting has been a growing industry since about 2005, although they seem to have made the biggest inroads in the past couple of years.
To prove that this isn’t just a broad sweeping statement, here are the facts:
- Ad spend for rich media online ad formats doubled in 2010, from 9% of all online advertising spend to now 18% of global impressions
- In 2010, simple flash banner ads accounted for 54% of all global formats served via the DoubleClick for Advertisers platform, down from 74% in 2009.
- Image ads jumped to 28% of formats served in 2010 up from 17% in 2009
- Size matters and larger ad sizes are still generating greater responses. Bigger ads perform better. According to Google’s latest set of metrics half-page ad unit (300×600) had the highest click through rate (CTR), interaction rate and expansion rates for all available creative sizes. And they cost more too, so they should perform better!
Tim Gray from Business 2 Community does highlight 4 reasons why online display advertising is stealing TV’s ad spend, but the one I think is the driving force is “Rich media is allowing marketers to build more relevant and engaging ads”. As I mentioned above, rich media is the homepage takeover ads that “skin” the whole page of a website with their brand, its the banners that expand, video ads that play without you, the user, initiating the interaction, over the page (OTPs) ads that pop up and play for 7 seconds, usually on a homepage like NineMSN.com.au and then disappear once they’ve shared their message but IMU’s (Intelligent Media Unit) are the best example of how rich media has grown most recently.
So, the big question is, how much are advertisers spending on display online advertising?
According to Forrester Research, interactive marketing spending in the USA will reach $76.6 billion by 2016, and make up 35% of all advertising (so this is still a projection rather than actual proof yet), pushing online advertising spend past television for first time. This data includes search engine marketing (SEM – paid search) at 44% of the total interactive marketing spend (display at 35% – so still not the driving force in online advertising) and of course mobile marketing is expected to explode – eclipsing email and even the new biggest thing, social media.