5 Reasons Display Ads are Making a Comeback
By: Kathy Staiano, iMedia WSI, Inc.
According to a new report by Forrester Research, by 2016 advertisers will spend almost $77 billion online, comprising 35% of overall ad spending. This is based on their “US Interactive Marketing Forecast, 2011 to 2016”.
One of the most interesting findings in the study, however, is that display ads are making a comeback. By 2016, display ads will jump to 27.6 billion promoting display to 36% of online spending.
Search advertising will still be the largest segment growing to $33 billion over the next 5 years but it will drop from today’s 55% down to 44% of online ad spending.
So what is contributing to the shift? There seem to be five key reasons:
1. Although search is still important, advertisers are changing their strategies to include many ways of “getting found” on the internet, not just through search engines. The amount of time consumers spend online with social media, location based services, review and recommend sites, content sharing sites and blogs continues to increase. Advertisers need to have a “web presence” and display advertising is a key component.
2. Advertising is no longer just about static images. The increase in the use of video has been a major contributor. Rich media ads offer higher interactivity with in-page video units, expandable retractable units and floating units. Plus, consumers find that dynamic motion, audio, click-through functionality and various levels of interactivity make display ads much more compelling.
3. This winning combination of sight, sound and motion stimulates “emotion” which has been at the very heart of what has made television advertising so successful throughout the years. It is what has helped build successful brands as well as loyal satisfied consumers.
4. Display advertising is more affordable than most offline advertising and therefore opens the door to advertisers who cannot afford other forms of media. It also provides a way for traditional offline advertisers to test the effectiveness of online advertising by reallocating a portion of their budget.
5. A final benefit of display advertising is the availability of analytical tools which make it possible to measure and make adjustments “during” a campaign. In addition, many big brand advertisers are shifting offline brand dollars into display as better data management platforms (DMPs) improve audience targeting and measure the contribution of a given impression toward their business goals.
In summary, online advertising will only continue to gain market share in the next 5 years. Advertisers who do not embrace this shift will fall behind their competitors in building brand awareness and loyal consumers. It is important to have a “web presence” with many ways to be found on the internet. Display advertising will play a critical role in this online mix.
