Marketers Planning to Personalize Display Ads

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Display advertising commands a huge portion of online impressions and marketing dollars. But as more engaging ad formats become available, display advertising providers are predicting big changes in this channel. It may sound counterintuitive, but some industry experts predict display advertising will become more effective as the overall impressions drop.

Earlier this month, Neal Mohan, Google’s Vice President of Display Advertising made a few predictions about the direction of this market.  Mohan believes that the number of display ad impressions is bound to drop, by about 25% per person in the next 4 years. This change could drive marketers to target consumers with more relevant and engaging content – such as videos or games. In addition, Mohan expects that consumers will begin customizing up to 25% of the ad content they watch. By doing so, engagement rates should climb dramatically.

As the technology behind display ad delivery grows more sophisticated, marketers will employ more tools for measurement. Currently, clicks and conversions are the chief measurement tools. In the future, says Mohan, merchants will measure emotional engagement and off-line, in-store shopping choices as part of a successful display ad campaign.

While Google may be the industry leader in search engine marketing, the company faces a competitive display market. Analysts at BIA/Kelsey see display advertising taking off at social media sites and achieving a value of $8.3 billion in 2015. As a result, Facebook will likely be the industry leader in this sector.

Regardless of who owns the display ad market, it’s clear that merchants see a bright future.

[Sources: Mohan, Neal. Google.  There’s a perfect ad for everyone. Googleblog​.com. 9 Jun. 2011. Web. 28 Jun. 2011; Young, Rob. Facebook Predicted to Lead Display Ad Revenue in 2015. Searchenginewatch​.com. 13 Jun. 2011 Web. 28 Jun. 2011]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.