Search has long maintained its dominance in online advertising. Last year, 48% of all online ad spending went to search. And while search is expected to remain popular with marketers, online video will begin to encroach on its market share by 2014. In addition, online video has already started to reduce market share for banners.
In 2012, eMarketer analysts believe that search will actually increase to 49.4% of all online spending. This is also the year that online ad spending, pegged at $39.5 billion, will come out ahead of traditional print. The $39.5 billion projected total will be comprised of spending in the following categories:
- Search 49.4%
- Banners 23.4%
- Video 7.9%
- Classifieds/directories 6.4%
- Lead generation 4.9%
- Rich media 4.2%
- Sponsorships 3.5%
- Email 0.4%
This year, banners will begin to see a drop in market share. By 2016, banners will have only 20.5% of the online ad market. And, the shrinking market for search will begin in 2014 when it falls from 48.1% to 46.9% by 2016. Online video will make up the difference. eMarketer analysts expect this format to skyrocket. In 2012, the growth rate will be 54.7%. Online video will still be growing at a faster rate in 2016 (18.9%), than search (6.3%) or banners (4.8%). In fact, between now and 2016, analysts see a steady decline in all online media formats except for online video. There is, however, a projected increase for sponsorships which will comprise 3.5% of spending this year and rise to 4.2% of the total by 2016.
The message presented in the eMarketer numbers is clear. Media properties must be prepared to sell online video and to help their advertisers navigate the complexities they may encounter as they shift to this format.[Source: Online Ad Spending Consolidates Among Search, Banners, Video]