Display advertising is on the rise. Research shows that it is the fastest growing form of online advertising in Europe and experiencing significant growth in North America as well. With Facebook\u2019s gains and Google\u2019s recent purchase of AdMeld, the U.S. market is expected to grow even larger over the next couple of years. These are among the signs that indicate the increasing importance of display advertising.<\/p>\n
Just about all of us are familiar with display ads. Most would probably agree that they can be extremely annoying and intrusive when you\u2019re trying to browse the web. This could all change in the not so distant future. Neal Mohan, Vice President of Google\u2019s display advertising division, was one of several in attendance at the recent Internet Week New York who sees a bright future for this fast growing market. Mohan shared predictions of how the game will change for the better by 2015 in his keynote speech, which aimed to illustrate how marketers can overcome some of the challenges that have held display advertising back for over a decade.<\/p>\n
One of Mohan\u2019s most interesting predictions was tied to the number of advertisements we will see down the road. He predicted that display ads will be displayed at the rate of 25% fewer impressions per user. However, a lower quantity is not the only thing he sees in the crystal ball. Mohan also predicts that the quality of ad formats and distribution will improve. Rather than being shown irrelevant advertisements at random, consumers will see ads that are more targeted and relevant to their preferences. With Google recently rolling out a new feature that serves up sponsored offers based on a user\u2019s browsing history, Mohan could be dead on with his forecast, albeit he does have an inside scoop of sorts.<\/p>\n
The biggest prediction the Google employee made in his keynote speech is one involving how he believes consumers will embrace the display ads they encounter online. According to Mohan, more than 40% of American internet users will declare display as their preferred form of advertising – one day. Bold prediction? Uh, yeah. However, Mohan\u2019s logic and confidence is based on the theory that consumers will be more receptive to content that is relevant and tailored to their liking. Following up on that line of thinking, this would theoretically make the display game a win-win for all players involved.<\/p>\n