Display Advertising – Overview of Market Value and Growth

Imgtc33

Evidence from all directions suggests a buoyant market for online advertising. According to figures from the Internet Advertising Bureau (IAB), US online advertising revenues reached $6.4 billion in the third quarter of 2010, an increase of 17% from the same period in 2009. Latest numbers from WPP‟s Kantar Media show that display advertising had the second largest growth rate among media sectors (after television media), up 7.7% compared to last year.

In the UK, online advertising spend reached a record market share of 24.3% during the first half of 2010 and increased by 34% year-on-year in the third quarter. UK users viewed more than 221 billion display ads, out of which almost a third (31%) were carried by Facebook. The major players in the advertising space are pouring more resources into display advertising than ever and the payoffs are significant. Google‟s partnership with Publicis Groupe‟s digital arm VivaKi was extended in November 2010, allowing advertisers to buy video and mobile display ads in real time on ad exchanges like Google’s DoubleClick platform.

Google announced in October 2010, one year after launching the DoubleClick AdExchange, that the company was on track to generate $2.5 billion a year in display advertising revenues (an estimated 61% year-on-year increase) while Yahoo reported a 17% increase in display revenues in the third quarter. Most of Facebook‟s $2 billion advertising revenues come from display and Twitter has recently announced that it is expanding its display ad platform by placing ads directly into users streams.

According to eMarketer’s Global Media Intelligence Report, online ad spend will reach $40 billion (£25.98 billion) in North America and $24.3 billion (£15.78 billion) in Western Europe by 2014. Global online ad spend is expected to reach $96.8 billion (£62.86 billion). Despite overall marketing cuts (as revealed by the latest IPO/BDO Bellwether report), display is expected to outpace search as the fastest-growing online marketing channel over the next three years. Much of this is fuelled by the growth of demand-side platforms, implementation of real time bidding and availability of deeper audience insight.

Category: Business, Technology 32 0

Related Articles