Google VP of Product Management, Neal Mohan, and Managing Director of Media and Platforms, Barry Salzman, recently gave a presentation at the Interactive Advertising Bureau’s MIXX Confered in New York. They discussed the future of online ads and paid search campaigns – and what we can expect to see in the next 5 years.
They made seven predictions for the online advertising market by 2015:
- 50% of online ads will contain video. They will be purchased on a cost-per-view basis (versus today’s cost-per-click model). Google has recently launched new products integrated with YouTube that allow advertisers the cost-per-view option.
- Mobile devices will be the number one screen for advertisers as more and more consumers purchase and use smart phones..
- 50% of display advertising targeting a certain demographic will be based on real-time bidding.
- New metrics for measuring the success of ad campaigns – specifically in areas of media and online engagement.
- As the advertising industry shifts to a more social approach, 75% of ads will become socially enabled, allowing users to interact with content and their peers.
- 50% of brand campaigns will include rich, interactive media in their ads.
- Online display advertising will expand to become a $50 billion industry. Companies using Google’s advertising options have increased their spending with the tech giant almost 75% during the last year.
What does this mean for small businesses and advertisers? Media – and therefore advertising – is becoming much more prevalent online, shifting from simple exposure to potential customer interaction. Online advertising is effective and has the potential for high ROI if executed correctly. A company needs to be on its toes to keep up with the constantly evolving changes in online advertising. For more information on getting your company online and the best investment you can make in time and resources to balance your marketing mix, contact Tailor-Made Advertising.
