Digital advertising is also called as Internet advertising which holds internet technologies to deliver promotional advertisements to the consumers that are delivered through email, social media websites, advertising on search engines, banner ads on mobile or Web sites, affiliates programs etc.
2. Overview
A decade ago, digital advertising was nothing more than a banner ad
placed on a website. Today, the internet is accessible everywhere we
go, on our tablets and mobile phones. This has spurred tremendous
growth in digital advertising. Digital spending is now the single
largest US advertising.
Facebook and Google control much of this spend. Facebook’s ad
revenue is projected to jump 32.1% while advertisers spend with
Google will increase 14.8%. Overall, Google controls 40.7% of the
U.S. digital ad market, followed by Facebook with 19.7%.
The numbers are even larger when just looking at mobile ad spend.
Google will make up 32.4% of mobile spend this year while Facebook
generates 24.6% of spend, meaning that the two companies
collectively make up 57% of mobile ad spend.
3.
4. Programmatic Advertising is on
the Rise
Programmatic advertising is gaining even more in popularity this year.
Programmatic advertising refers to the use of automated systems and
data to make media buying decisions without human interference.
Here is an overview of how programmatic advertising works:
Brands and advertisers bid for an ad space.
These brands/advertisers place variables based on the price and market
segment they are targeting.
While a web page with an ad space is being loaded, the information
that’s been gathered about the visitor is send back and forth to an ad
exchange.
The space gets auctioned off to the highest bidder and the ad is placed in
the space- all taking place within a fraction of a second.
6. Digital Advertising Produces ROI
Nielsen completed more than 800 studies over the past seven years,
collaborating with more than 300 CPG brands and 80 companies to
measure the correlation between online advertising and offline
consumer purchases.
Nielsen concluded that brands can experience a return of almost
three dollars in incremental sales for every dollar spent in online
advertising that has been precisely delivered using purchase-based
information.
When the researchers compared the difference in ROI performance
between studies that have an online element and those that do not, the
results were striking — adding online to the media mix has a positive
impact on the campaign ROI for all media, from a delta of +4% for
radio to +51% for outdoor and an astonishing +70% for television.
7. Outstream Video and the Future of
Digital Advertising
What is outstream video?
You’ve probably seen outstream video before without realizing what you
were looking at. The best description of the new ad units comes from the
AppNexus team:
An ‘outstream’ video ad unit, also commonly referred to as ‘in-read’ or ‘native
video’, is a new video advertising unit that autoplays in a large format player
whenever a user navigates to it within text content (typically an article), even
if the publisher doesn’t have their own video content. It’s called outstream
because the video ad exists outside of online video content – also known as
instream video content — where the ad plays either before (pre-roll), during
(mid-roll), or after (post-roll) the publisher’s video content
By 2019, online videos are expected to generate $15.4B in
spend, and hog 80% of all internet traffic.
8. The Growth Of Mobile Advertising
Americans spend over 10 hours a day on screens and about five of those hours are
spent on their smartphones. Mobile will be the main driver of digital’s growth in 2017,
accounting for over 70% of digital and more than one-quarter of total media outlays.
Growth will remain in double digits through the end of the forecast, with mobile ad
spending expected to surpass TV in 2019.
Marketers are now able to reach their intended audience on mobile 60 percent of the
time. That percentage seems impossible on desktop or traditional advertising, but is
the norm for mobile advertising.
Digital advertising today is now more sophisticated, personalized, and relevant.
Consumers spend more time online than ever before and digital advertising offers an
ideal way to reach multi-device, multi-channel consumers. Marketers are also able to
target consumers with laser-focused precision as never before. Brands are no longer
limited to just demographics and firmographics but can target the exact audience
most likely to purchase based on thousands of lifestyle, personality, behaviors, and
purchase intent segmentation variables.