Internet Marketers To Spend More on Display Advertising Than Search Marketing
By Anna Johnson on June 14th, 2011According to eMarketer, Internet marketers are set to spend more money on online display advertising than search marketing by 2015.
While search advertising attracts the most online ad dollars right now, the steep growth in online video ad spending, combined with steady increases in banner advertising, mean that display advertising will usurp search within the next four years.
In 2011, U.S. advertisers are expected to spend $14.38 billion on search ads, up 19.8 percent from last year. At the same time they are expected to spend $12.33 billion on online display advertising, up 24.5 percent from the amount spent in 2010.
“The rebalancing of ad budgets across the board, among companies both large and small, national and local, will be pushing more brand-oriented dollars on to the web,” said David Hallerman, principal analyst at eMarketer.
What is driving the shift towards online display advertising?
According to eMarketer:
“The rise of display advertising, in particular online video, goes hand in hand with a rise in usage of digital advertising for branding. Online advertising, long considered primarily for direct response, still leans in that direction. But branding is increasing in importance as better ad vehicles develop for this purpose and market dollars flow.”
eMarketer reckons that 39.4 percent of online ad dollars will be devoted to brand based online advertising this year. This includes banner ads, rich media, sponsorships and video advertising. Meanwhile, 59.6 percent of ad spending will go into other ad formats, including classifieds, embedded email ads, lead generation and paid search, are typically classified as direct response.
Over the next few years, however, brand based online advertising will grow more quickly than direct-response spending, rising to 44.4 percent of the total by 2015. This will, in turn, drive the shift towards display advertising.
Source: eMarketer, “Display on Trajectory to Surpass Search Ad Spending,” eMarketer, June 9, 2011
