Display advertising networks are set to change in the next few years. As certain types of ad formats phase out, others are phasing in – or back in, as the case may be. While early display ads had all the effectiveness of billboards, modern-day networks are much more sophisticated.

Here are five ways that display advertising networks will change in the next five years:

1. Display Ads Will Be Big

And by “big,” we mean popular. By 2016, display ad spend is set to “eclipse” paid search ad spend. For the past several years, display ad spend has been growing at 21% per year, and the total spend is set to hit almost $75 billion in 2016.

Why such speedy growth? For one thing, search ads are becoming less profitable, as more customers become more desensitized to sponsored search results.

Another big factor is that programmatic ad buying is fueling all advertising industries, from display advertising to social media advertising, online video ads, and more.

2. Interstitials Will Be Big

Earlier in 2014, a report came out and claimed that 70% of mobile ad revenue comes from interstitial ads.

Interstitial ads refers to ads that occur at logical breakpoints during the app flow, overtaking the entire screen, as opposed to taking up a portion of the screen real estate. Other data suggests that interstitial ads can have a much higher conversion rate than ever-present banner ads.

Why?

For one thing, users are forced to look at them. On the surface, forcing users to view an ad may sound somewhat intrusive, but it is no less intrusive than a TV commercial or a YouTube pre-roll ad. In fact, displaying ads in this manner gives you the opportunity to present the rest of your app ad-free.

3. Videos are on the Rise

Like interstitials and display ads in general, video ads are exploding in popularity. In the first quarter of 2014, the number of mobile video ad auctions grew by 350% over the previous quarter.

Here are a few reasons why this trend will probably continue:

Technology is evolving. Mobile devices, which only became widespread recently, have become capable of streaming and playing video.

Streaming video consumes half of the internet’s bandwidth. According to a forecast by Cisco, streaming video and video-on-demand will continue to grow. By 2018, this traffic will be equivalent to 6 billion DVDs per month. And, as we have seen with YouTube and other streaming sites, not to mention TV, the best way to finance this massive video consumption is through advertisements.

4. Programmatic Ad Buying Will Become Necessary

Some have projected that programmatic ad buying will account for half of all digital ad sales by 2018.

Here’s why programmatic is growing so quickly:

It solves a necessary problem in the advertising world. There are countless ad networks vying for your attention. Each offers better prices, better conversions, better inventories, and so on. Programmatic ad buying solves these decision-making problems by handling the real-time bidding for you.

It boosts your ROI. When you don’t have to wade the complex waters of the fragmented advertising industries yourself, you can actually maximize your ROI. In fact, without programmatic ad buying and turnkey advertising platforms, it can be nearly impossible to know what your real advertising ROI is.

You can focus on what’s important. If you’re a developer trying to advertise your own software, then you’ll want to focus on coding. If you’re an advertiser trying to advertise, there are plenty of other aspects of your campaign that warrant your attention. Programmatic advertising takes care of optimization, so you can focus on creative and strategic goals.

5. Highly Targeted Delivery Will Become Normal

Programs can’t – and shouldn’t – do everything, however. As just mentioned, the creative and strategic goals should be left to the humans behind the machines. And that’s exactly where specialized ad networks shine.

In the same way that personalization provides targeted, relevant advertising for specific customers, specialized, niche ad networks provide targeted, relevant advertising for niche audiences.

CodeFuel, the company behind the world’s leading software monetization platform, has developed an array of monetization tools aimed towards developers, software publishers, and advertisers. Among them is DisplayFuel, a targeted display advertising network that serves software advertisers.

Specialized advertising networks such as these generate higher revenue because they spend time cultivating exclusive inventories spread across a network of top-quality advertising channels.

 

Over the next five years, display advertising will see many changes. It will continue to grow in popularity and sophistication. On the one hand, it will become more automated and programmatic; on the other hand, the advertising networks that succeed will be the ones that utilize human creativity and strategy to offer innovative, specialized solutions to advertisers.

Advertising 5 Ways Display Advertising Networks will Change in the Next 5 Years