Video Growth Drives Display Advertising Spending To $37.6 Billion In 2019

This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.

US online display advertising will grow from $19.8 billion in 2014 to $37.6 billion in 2019, at a compound annual growth rate of 13.7%. The offline ad market, in comparison, will grow at a modest 1% CAGR over the same period. Forrester just released the latest US Online Display Advertising Forecast report, which details why the online display industry will have video and mobile to thank for the double-digit growth rate:

  • Video advertising will represent nearly 55% of online display advertising revenue on desktop by 2019. Its growth will be cannibalizing primarily static display. Marketers’ preference for video and rich media reflects their new ambitions for online display: They are moving beyond the notion of display as a direct response tool, and starting to explore display as an engagement and branding tool.
  • Mobile ads will represent 39% of total online display in 2019 compared with 24% in 2014. Tablet display, in particular, will be a medium to be reckoned with in the future as it comes to play a greater role in customers’ path to purchase and in web-influenced shopping.
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The Beginning Of The End For The "Programmatic" Ad Network

The acquisition of [X+1] by Rocketfuel signals the beginning of the end for “programmatic” ad networks. Since the industry’s shift to programmatic, countless ad networks have changed how they market themselves, adjusting their sales language to mimic legitimate programmatic platforms. The “programmatic” ad network insertion order-based and flat-rate business model has prolonged the black box opacity that spurred the need for demand side platforms and exchange based media buying. It’s only fitting that one of the industry’s most successful “programmatic” ad networks — Rocketfuel — is addressing client demand by making a move that launches them into the digital marketing SaaS market.

There is a lot to be said about the success that Rocketfuel has had in the industry; they have done great things for marketers looking to automate audience prospecting and retargeting. They certainly have done an amazing job marketing their programmatic chops, with the success of their AI product and their success with agencies running performance based campaigns. Their recent revenue growth and the fact that Rocketfuel had the capital to acquire a DSP/DMP in [X+1], are testaments to the success that they have had in the industry.

Despite their success, prolonging opacity for marketers in this market is a short-term strategy, and Rocketfuel is positioning itself for long-term success.

Coming from the agency trading desk world, I did not partner with Rocketfuel for several reasons:

  • Rocketfuel works with marketers and agencies on a flat-rate business model, which is aligned with traditional ad network buying.
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Let's Talk About Programmatic

Programmatic – one of digital marketing’s buzzwords of 2014. It seems today everyone is doing programmatic ad buying – and if you’re not, then some would say your media strategy is lagging behind. 

Most marketers are still trying to make sense of the programmatic buying space and answer questions like:

  • How should I be using programmatic and what can it do for my brand?
  • What types of programmatic technology should I be using?
  • Am I getting the most out of my current programmatic approach?
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