Startups looking to become the next big thing on the social web may find it more difficult to raise capital going forward, but there's good news for the major players in the space today: the amount of money advertisers spend on social ads is set to grow considerably in the next several years.
By just how much? According to a new report by BIA/Kelsey, spending on social ads will double in four years, growing from $4.6bn this year to $9.2bn in 2016.
Real-time bidding (RTB) may be a source of concern and confusion for both media buyers and sellers, but that isn't stopping adoption of RTBs.
According to a report published this week by sell-side platform Index Platform, the number of RTB impressions sold via its platform jumped nearly 30% in the first and second quarters of the year. What's more: growth was driven by both major advertisers, which accounted for 57% of all spend in Q2, and local advertisers, which increased their spend by nearly 50% quarter-over-quarter.
Mobile is everywhere, and while it might not be everything, one need look no further than Facebook to recognize that for many companies, figuring mobile out is crucial.
But despite the obvious opportunities being created by the mobile explosion, many questions remain. One of the biggest: just how big is the mobile ad market going to be?
Much has changed during the rise of online bidding, social media and video that it has made the old ad serving companies irrelevant.
Michael Rubenstein, president of AppNexus, has been working for the past three years on developing better technology in the ad serving space.
AppNexus has grown very quickly into a global company and is trying to establish a new standard for advertising technology.
Two of the main advantages that PPC has over other forms of advertising are transparency and control.
You can see exactly where you are advertising, and control the amount that you pay per conversion with great precision. If you know your conversion rate then you can adjust your cost per click to get any CPA that you want.
When advertisers use Google’s Display Network, it’s inevitable that many apply the same logic to it. They have a target CPA, they know the conversion rate, and so they set the bids accordingly.
But is this the right way to go about it? Many advertisers advertise using banner networks, and it appears that the psychology is very different outside the AdWords environment.
If you're a consumer, it may be difficult to believe that the next web page you visit might display the "perfect ad." After all, ads can be annoying at worst, and at best, you simply don't even notice them.
But according to Google's VP of Display Advertising, Neal Mohan, "there's a perfect ad for everyone." In a post on the Official Google Blog, he suggests "We’re at the beginning of a user-focused revolution, where people
connect and respond to display ads in ways we’ve never seen before," and makes six predictions about the future of online advertising.
It has been nearly three years since Google acquired Doubleclick for $3.1bn and despite the fact that Google's largest cash cow is still far and away AdWords, the search behemoth has quietly built up a very strong presence in the display advertising market.
If the numbers from Doubleclick's ad exchange are any indication, that presence will only be getting stronger.
Optimization and targeting. Segmentation and analytics. There are
countless tools that let digital marketers track the effectiveness of
their campaigns, and even tweak them on the fly for a better ROI. And yet, when it comes to accepting new ad formats and
strategies, there are still cries for "better metrics" and "more
What of creativity? Don’t ads need to be engaging and beautiful
enough to attract a click (if that’s the metric you’re going for) in the
Congress has struck fear in the hearts of digital marketers that regulation will squash the potential of targeted ads. But something else might get in the way of online targeting's success: customer preference.
According to a recent academic study, big targeted ads online are actually no more effective than run of the mill banner ads. Combining the effectiveness of roadblock ads with targeting may seem like a no brainer to marketers, but web surfers aren't responding as expected.
Online advertising has suffered less during the recession than traditional ad products, but many advertisers still think online ad inventory falls short in one key area: brand building.
And while print ads may never perform as well as they once did, television advertising has been surprisingly buoyant as digital has grown. In fact, The Economist recently called television "The Great Survivor." As traditional media formats struggle to stay afloat, digital video is seen by many as a strong way to connect with consumers, and video ads are popping up online with increasing frequency. But can video save display ads from obscurity and present the key to brand building online? That's not clear yet.