Display ads — banners, videos, sponsored content,native advertising and in-stream mobile promotions — will outpace search ads in 2016. You are starting to read these numbers everywhere and when one drills down finds that spending on display will hit $32B this year, overtaking spending on search at $29B.
These numbers also show display growing at 50% while search grows at 10% which should scare the shit out of Sergi and the boys at Google (GOOG) which explains why they are making some longer term bets.
The trend does not bode well for Google, which reaps the lion’s share of search ad revenue. Of course, the search giant also reaps other ad money — from its massive banner business and YouTube, primarily.
But in the category of digital ads, Facebook (FB) is a far greater foe. Figures show that Facebook claimed 30 percent of U.S. display ads in 2015, more than 2x Google’s share. Plus, many in the industry see Facebook’s nascent automated ad platforms as a potential threat to Google.
eMarketer said in today's report. "Within the display umbrella, advertisers will invest the most on banners and other, a category that includes many types of native ads and ads on popular social sites like Facebook and Twitter. “
Eight Developments to Watch for in 2016.
1.) One in five dollars will go to “banners and other” digital display ad types.
2.) Video will also command a large portion of ad spending.
3.) Spending growth in the categories of rich media and video will both be significant:
4.) Rich media’s growth will be driven by growing adoption of “out-stream” and in-feed video ad formats.
5.) Video will grow due to publishers looking to capitalize on high-demand, high-value in-stream video ad inventory.
6.) Desktop will remain the beneficiary of video ad dollars, with 57% of $9.59 billion spent.
7.) Remaining display ad formats will go to banners, rich media, sponsorship and other display-based formats
8.) 77%, or $17 billion, will be spent to reach smartphones and tablets.
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