At the Interactive Advertising Bureau’s Mixx conference in New York on Tuesday, Google made seven predictions for display advertising that the company thinks will happen by 2015, reports the NY Times.
Neal Mohan, the vice president for product management responsible for Google’s display advertising products, and Barry Salzman, managing director of media and platforms for the Americas at Google, who runs display ad sales, envisioned a Web where the ads are more social, mobile and real-time — and a lot more profitable, says the NY Times.
- Google announced two new kinds of video ads for YouTube and predicted that half of display ads would include cost-per-view videos that viewers choose to watch. On YouTube, people will be able to skip video ads they don’t like after five seconds (and the advertiser won’t pay for those views) or choose which of three ads to watch.
- Half of the audience will be viewing ads in real-time, Google predicted. That means changing elements of ads on the fly based on things like location, the viewer’s interests and the weather. Google demonstrated technology from Teracent, an advertising company it acquired, that changes a car ad depending on whether the viewer is in a sunny or rainy place, is a woman or a man, and prefers shopping or sports. The technology would allow “millions of possible permutations,” Mr. Salzman said.
- Google predicted that cellphone screens would be the No. 1 screen for viewing the Web by 2015. In display advertising, that means using phones to bridge the gap between a magazine ad and an online ad. Google Goggles already lets people take photos of things to search for them on Google. Eventually, people will be able to take a cellphone photo of a print automobile ad, for instance, and see the car in 3-D.
- There are metrics more important than clicks. “Whatever the marketing goal is, you should be able to measure it,” Mr. Salzman said. In addition to measuring engagement with rich media ads and video views, other examples of new forms of advertising measurement include “sentiment analysis” that examines “the tone of consumer comments about a brand” and geo-based metrics will allow marketers to measure the increase in foot traffic or to their stores.
- Three quarters of all ads will be socially enabled. “All users will be able to share an ad, comment on an ad and give feedback on an ad,” said Mr. Mohan. Instead of advertisers talking to consumers directly, Mr. Mohan envisioned “a two-way communication channel between a brand and its consumers.”
- Rich media ads will comprise 50 percent of all campaigns. According to Mr. Salzman, “Static banner ads will become a thing of the past.” To illustrate his point, Mr. Salzman showed the audience the live video stream of the presentation as it was streamed to ad units on the Advertising Age Web site. He described it as a “meta media phenomenon.”
- Display advertising will grow to be a $50 billion market.
According to Google, every day, there are more ad calls on the DoubleClick Ad Exchange than there are trades on all the world’s stock exchanges combined.
In September, Gartner forecast that Android would become the second largest platform worldwide by the end of the year, a slot currently held by Blackberry maker RIM and predicted that Android could reach the number one spot by 2014, ousting Nokia’s Symbian OS.
Geoff Ramsey, CEO of eMarketer (above), gives his take for Mediascrape. In the next three- to five years, a website that isn’t tailored to a specific user’s interest will be an anachronism, according to Facebook COO Sheryl Sandberg.
Currently, North America controls 36.6% of the worldwide advertising market, says eMarketer, compared to Asia-Pacific’s 28% share. But North America’s share will decline to an estimated 33.8% of the market by 2014, while Asia-Pacific’s slice will increase to 30.7%.
Newspapers, magazines and television now have a fundamentally new platform for delivering subscription services and display advertising. The Tablet.
An audience of billions. A demographic of one.
