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Digital Display Advertising Spend to Outstrip Search in 2016

Digital Display AdvertisingNew research published in eMarketer indicates that investments in display advertising will exceed those for search ads in 2016. Display ad spending has nipped aggressively at search’s heels over the last few years. Now it has taken the lead.

Display ads, of course, are advertisements that appear within or alongside the content on a page. Advertisers bid on ad space that holds relevance to their brand, product, or service and use data to serve contextually-relevant ads. Whether in banner, video, or native format (more on native advertising shortly), we’ve all encountered display ads around the web. Their rise to prominence is a direct result of what eMarketer terms “consumer-led media habits” like mobile device use and online video consumption.

Why are advertisers spending more on display advertising?

Ask yourself: have you watched a video online in the last week? Have you used the web to consume any news, whether business, politics, or entertainment? If you’re like most internet users, the answer is yes. Advertisers are spending more on display ads because there are more people using more websites to consume more media.

However, increased online media consumption doesn’t adequately explain why display ad spending is eclipsing search. Why are display ads suddenly so much more effective than in years past?

For one thing, search no longer holds an advantage when it comes to contextual ad placement. Advertisers now have access to the same kind of audience data for their display ads that used to be exclusive to search engine marketing (SEM) campaigns. Retargeting also allows advertisers to track users’ online behavior and use the data they collect to serve relevant ads around the web, not just in search engines.

The rise of new ad formats has had a major impact, too. Native advertising, like LinkedIn’s Sponsored Updates, allows advertisers to position ads in a way that suits an existing interface.

How should B2B brands react?

If you still aren’t sure how display advertising fits into your overall digital marketing strategy, it’s not too late to start pursuing it! A good place to get started is KEO Marketing’s guide: How to Leverage a Strategic Mix of Search and Display Advertising for Maximum ROI. Download the guide to learn more about blending search and display ads in a way that suits your advertising goals.

For brands that still devote 100% of their online ad budget to search, it’s time to take advantage of new opportunities. Search marketing isn’t the only way to serve relevant ads anymore, and many brands find display advertising a more effective option. Both channels offer detailed reporting and analytics to monitor progress.

As a leading digital marketing agency, KEO Marketing offers a comprehensive suite of digital advertising services. We can help you combine search and display ads to connect with your audience and achieve your lead generation objectives.