AdReady Blog

What’s Next for Display Advertising? A Look into 2011

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Last week, I took a fond look back at 2010, recalling key trends of the past year. Now, let’s look into the crystal ball and see what 2011 will hold for the display advertising industry. As many have said, the coming years promise to be very good for the online advertising business, particularly display. Here are a few of the things I predict will take center stage in the coming year:

The Emergence of Creative Automation Technologies
In 2010, there were many advances in targeting and bidding capabilities that allowed advertisers to more easily purchase unique audience segments. However, the ability to mass produce creative for the seemingly infinite audience segmentation’s now available lagged behind. In 2011, I believe we’ll see more and better creative automation technologies that will deliver on the promise of sending the right message to the right person at the right time (or as we call it, precision campaigning.)

Increase in Demand-side Fragmentation
Display advertising is still highly concentrated on the demand side. The biggest 1,000 or so advertisers still drive at least 90 percent of industry spending. In the coming year, this will begin to change. Increasingly, the kinds of sophisticated tools that have only been available to the higher end of the market are becoming more economically viable for marketers with smaller budgets. With this change, display advertising becomes more accessible to small and medium sized advertisers, and higher performing campaigns and better ROI become a reality for those outside the top 1,000. These advances will open the market up to many more advertisers and contribute greatly to my next prediction…

Continued Growth of Display You’ve seen the statistics everywhere: the display ad market nearly doubled in 2010, online ads report record growth in Q3, online ad spend outpaces newspaper advertising and more. In fact, eMarketer reported just this month that display advertising spend is catching up with search and is expected to surpass paid search ads in 2014 . And, when Google shared their seven display ad predictions in September, they predicted that display advertising will become a $50 billion industry by 2015. There’s no doubt about it, display advertising is on the rise and will continue to grow as it overtakes search. 2011 will be an important year in this surge, a result of the broadening of demand side providers (as mentioned above), and a rise in spending by brand-focused advertisers.

In short, 2011 looks to be a great year for display! As new and better technologies emerge and more and more advertisers become equipped to succeed in display, the display ad business will continue to grow and shatter expectations. All of us at AdReady are looking forward to a fantastic year!

Posted by Jonah-Kai Hancock