Thursday, June 9, 2011

Display Advertising Will Become A $200 Billion Industry.

We were told so by the Vice President of Display Advertising at Google, Well I followed the link he has given. Yes, He has some backing for that statement, former Google CEO, Eric Schmidt has told "The online display market could quickly become a $200 billion ad business—if it gets its act together." at the Interactive Advertising Bureau’s annual meeting in La Quinta, California, last February. The keyword is Getting the act together.
What Neal Mohan pointed out might help to get the this act together. So I had to take down the following notes he made, just to keep as a reference for myself. Basically he is putting the ball in people's court for the future of display ads.
If you are working with ads, I think the following 6 pointers could do wonders, provided that you are in the same camp as me.

  1. The number of display ad impressions will decrease by 25 percent per person. Today, people are bombarded by online ads, but they don’t connect with most of these ads in a meaningful way. I believe the trend will be for people to ultimately see fewer, but better ads.
  2. Engagement rates across all display ads will increase by 50 percent. As ads become less cluttered, more relevant, more engaging and more attractive, we’ll see the rate at which people interact with display ads (such as watching videos or playing games) increase dramatically.
  3. People will have a direct say in 25 percent of the ads they see. Whether by choosing to watch—or not watch—video ads, updating their ads preferences to customize the ads they see or actively subscribing to or choosing to receive particular ads, users will be more in control of when and how they see ads online.
  4. 35 percent of campaigns will primarily use metrics beyond clicks and conversions. Technology is helping marketers measure their ads with new tools that look at factors like emotional engagement and impact on offline behavior (like in-store shopping choices). We see a longer-term future where these become the primary metrics used to measure the success of a campaign, meaning marketers will be able to deliver the ads that potential customers say they like the most.
  5. 25 billion ads per day will tell people why they are seeing them. We believe it’s important to give people as much information as possible about why they see particular ads. That’s why we’ve always included an “Ads by Google” notice, and now the AdChoices logo, on ads across the Google Display Network. We strongly support the widespread use of this logo by members of the display industry and by 2015, believe that this sort of notice will become ubiquitous.
  6. Over 40 percent of online Americans will name display ads as their favorite ad format. We recently conducted a survey with YouGov of more than 1,000 U.S. Internet users, asking them what ad formats they liked. The number of people who said they preferred display ads trailed slightly behind the number who liked glossy magazine ads, cinema ads and even sky-writing—formats that have been around for more than 50 years! We think this will change. Display ads provide an incredible platform to engage, excite and inspire. If we as marketers, publishers and technology providers can deliver experiences that delight the user, we can take this industry to new heights.
You can read about Eric Schmidt's $200 billion mention here and Neal Mohan's post by following the link below.

Official Google Blog: There’s a perfect ad for everyone Sphere: Related Content

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