Wednesday 10 October 2012

Forrester advertising online research just published. Massive growth and massive uptake on video. Video will represent 76% of all display advertising within 2 years!




There's a lot of research nonsense out there on digital advertising. All of it should be taken with a pinch but generally, it's useful in identifying a trend. The numbers might be overestimated, but the general trend is probably true.

if you're told it's growing by 60%, it's probably 30% - but it's definitely growing.

Forrester however, is one of the more reliable sources and have just announced their forecasts - and it's looking good.

US online Ad display will reach just under 13 billion usd this year and it will grow by 17% per annum. About 5 billion of that will be shared between Google and Facebook. CPM's will nearly double to 7 dollars at the cost of offline media which will continue to decline. However, a CPM rate of 7 dollars is low and being brought down by low-cost online media. Competition.

Rich media and video ads are by far, the most preferred formats in the US with static images (banners) declining rapidly at a -45% each year. Text based formats are still growing but according to Forrester, will be overtaken by video ads in 2014. Good news.

European digital display ad growth is slower than the US at 6 billion usd and growing by 13%. European companies are much slower Internet adopters than their US counterparts and generally more, "conservative".

They estimate in Europe, rich media/video ads will account for a massive 76% of all display advertising in 2 years. People are prepared to watch more long-format video growing at a rate of 32% over 18% for short form. While youtube is the king of short form, it seems that video is becoming more watchable as the quality improves.

In general this is encouraging.

There's no doubt you're seeing sizeable shifts towards online advertising display, quicker than we thougth and that video is the answer. Although CPM's remain low, the volume will compensate for that.

VOD. If you haven't got it, call.

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