By 2015, online display advertising is predicted to overtake search in overall dollars spent. Search experts will pooh-pooh the value of online display — but evidence is growing that online display ads can be very effective as part of an overall media strategy. Some reasons for this:
• Sophisticated algorithms are delivering display ads in a highly targeted manner. A major reason the online advertising community will resist Do Not Track legislation (see the three previous posts here at the Scout for more details) is that advertising can now be targeted to people whose prior online activities demonstrate potential interest in an advertiser’s product or service. This level of targeted ad placement effectively becomes a form of “stealth search,” which enables a much higher response rate than randomly placed ads (and provides a more relevant online user experience as well).
• Online display ads are becoming far more attractive and engaging. Gone are the days when “dynamic banner ad” meant a mortgage come-on with states and rates jumping off the screen in electric-green type. Digital video and the sophisticated animation capabilities now available in Adobe’s CS5.5 products put beautiful, attention-getting online ads within reach of even limited budgets. As a result, display ads are becoming a seamless component of the online media experience, comparable to design-house ads in fashion magazines.
• In a word: Facebook. Statistics vary over whether Google or Facebook leads the display advertising pack — but there is no question that Facebook’s explosive growth over the past four years is reflected in its ad revenues. Based on recent reports at Mashable.com, this single social media platform will account for anywhere from 12-16% of total display expenditures in 2011. It is worth noting that Facebook advertising is generally known among professional advertisers to have marginal response rates, arguably due to the limits of Facebook’s low-key visual presentation of ads. For Facebook to break out of its weight-loss and Facebook-fan-building advertising base, look for this platform to change the rules on ad visuals in coming years.
How have online display ads been working for YOU? Are they performing as well as search in your marketing mix? Are you upgrading the look of your online display ads with digital video or animation? Share your thoughts with us here.
