US advertisers will spend $14.38 billion on search ads this year.
They’ll spend $12.33 billion on online display ads this year.
That’s up 19.8% and 24.5%, respectively, over last year.
Online display advertising is on track to surpass search by 2015.
THOUGHT: It would be nice to see a breakdown of what constitutes “display” advertising. A lot of it is being driven by video ads and the new inventory that is opening up as a result of mobile Internet adoption certainly accounts for a good chunk of the spend, as well.
But that doesn’t explain all of the resurgence of display advertising.
I confess that for the longest time I dismissed banner advertising as a colossal waste of effort but with the advent of behavioral targeting and the psychographic profiling you get with Facebook and LinkedIn ads, display all of a sudden can be quite effective.
eMarketer also cites increasing budgets for branding advertising as a reason for the surge.
My guess is that advertisers have learned some lessons about the effectiveness of combined search and display tactics coupled with the infinitely better targeting now available for display ads.
MINNESOTA MONDAY: Watch for the names of #Bachmann and #Pawlenty to rise as trending Twitter topics tonight as Minnesota Congresswoman Michele Bachmann and former Minnesota Governor Tim Pawlenty face off in the New Hampshire GOP presidential debate hosted by CNN at 7 Central tonight.
Thank you for the Champions Club.
GET THESE INSIGHTS DELIVERED DAILY TO YOUR INBOX: