Once there were radios, then came television, and now, with computers quickly becoming America’s primary source of entertainment, advertisers are being forced to take notice. The latest trends in online advertising reflect this changing vantage point, as a new analysis from eMarketer shows video will be the fastest growing digital ad format over the coming years, slowly but surely gaining momentum against search and banner ads. The oracle has spoken.
Videos Up, Banners Down
More commercials, predicts eMarketer this week, as video ad sales continue to rise in the ranks. Along with search and banner ads, the three formats will account for 80% of all U.S. online spending through 2016. Noted in BizReport, the research group forecasts that, while video remains in third place behind the other two at present, it will see a constant rise in sales over the coming years. In 2010, it accounted for 7.9% of all online ad buying, and eMarketer believes its share of the market will rise to 15% by 2014.
Nevertheless, search remains king for awhile. Encompassing 49.4% of total online spending now, the company suggests search ads will stay a primary target for marketers, showing only a slight decline in the near future. Banners, which take up 23.4% of the total online ad spending, will drop to 20.5% by 2016.
The continued dominance of search as the leading digital advertising format comes as little surprise, with its near-universal adoption rates among consumers and popularity on both the desktop and mobile web.”
Here’s a breakdown of the details:
So, We Figured
The news is no shock to most, as online search has been prevalent in the field for awhile, and has also been significant in driving mobile advertising revenues. Also noteworthy, at the beginning of the year, eMarketer surmised online ad sales would surpass print this year, with digital ad spending to reach US$ 39.5 billion, while print spending falls slightly behind at US$ 33.8 billion.
The turn to video advertising arrives at a time when more and more original content is being created for online platforms, and the ability to broadcast anything from computer stations becomes the norm. Others predict video will capture as much as a third of the advertising pie this year, stealing dollars from television budgets to account for the necessity of online publicity. It’s acknowledgement of a transition in consumer engagement, as audiences bring television sentiment to their desktops, and advertisers must accommodate for the shift in interest.
Next item on the agenda: social media advertising.
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