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BizReport : Advertising archives : June 17, 2011

What's driving online ad growth?

2011 is looking like a banner year for online advertisers, even as we hit the half-way mark. The key to spending increases is that it isn't just advertisers who are doing it. Consumers are spending more time and money online - they are shopping, researching purchases, playing games, interacting on social networks and consuming content.

by Kristina Knight

Following them online because of ad targeting factors, online marketers are expected to spend more than $7 billion online this year. Dale Carr, CEO of Leadbolt, offers his insight into the driving forces behind the strength of the online ad market.

Kristina: Display, in particular, seems to be having a rebirth of sorts as marketers include rich media and other options. Do you see the interest in display continuing through 2011 and into 2012?

Dale Carr, Leadbolt CEO: Display advertising is seeing a resurgence in just the same manner that all forms of online advertising are playing an increasing role in consumers' everyday lives. Display is still only a fraction of search advertising, but as more consumers are tracked and tagged, they will ultimately be bagged by the savviest ad networks and advertisers. Additionally, social networks like Facebook are contributing to a huge resurgence in display as consumer information is made explicitly available to advertisers. Display advertising is also widely becoming influenced by an individual's search behavior on websites like Google, Yahoo, and Bing. You can be sure that Google's search engine data is going to be provided to advertisers to re-market to on their display network. Ultimately, the more those consumers spend time inputting their personal information into social networks and search engines, the more you can expect display to grow as a result.

Kristina: What trends are you seeing in the online ad space?

Dale: The two trends we are noticing is brand advertisers shifting budgets from television to performance pre-roll spend and images becoming an ad-serving unit. Pre-roll advertising never worked, but as the software and implementation have improved, video advertisers are seeing exceptional lifts in user response and click through rate, and eliminating drop off rate from users not wanting to watch pre-roll ads. The days of paying to be seen are even becoming more of a thing of the past, as paying to be interacted with is becoming the absolute norm. Video advertising for major brands will continue to see exceptional year over year growth. The other trend we are noticing is alternate ad networks are allowing publishers to install their java code on their CMS's to display CPC ads that hover over images. This simple ad unit is a great way to fill space that was previously not being utilized, but most definitely being looked at.

Kristina: As mobile becomes more viable, do you expect some of the online spend to be put into mobile?

Dale: Absolutely, mobile advertising is still very much in an exponential growth cycle with numerous ad networks competing for mobile advertisers and publishers. Mobile and tablet advertising ad units offer just as much capability and exposure to that of the PC or Mac. App publishers are driving billions of monthly impressions in the US and generating millions of mobile visitors to tens of thousands of advertiser's websites. Mobile inventory is still very affordable compared to traditional display networks and search engines. Additionally, targeting on mobile apps is becoming more transparent and easier to implement as user history accumulates and marketplace data is incorporated into targeting algorithms. As mobile continues to evolve in both speed and capabilities, we expect mobile advertising revenue to exponentially increase for years to come.

Tags: advertising forecast, advertising trends, Dale Carr, display ads, Leadbolt, online advertising

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