Display advertising vs. video advertising: what are the trends that drive ad spend?

Trends in Video and Display Advertising

As we’ve mentioned elsewhere on the CodeFuel blog, video advertising is on a sharp growth curve.

Video Advertising Trends

According to Business Insider, video ad revenue will nearly double between 2013 and 2016. And in the coming years, as mobile technology advances and new virtual technologies proliferate, we’ll see video also proliferate – both 2D and 3D.

Facebook and YouTube are both diving headlong into video advertising, along with the majority of other social networks and micro-blogging platforms.

So there’s no doubt that video is on the uptick.

Display advertising trends

While Business Insider predicts video advertising will grow at nearly 20% this year and next, traditional display will only grow at 3%.

Some companies, such as Forrester, lump together display and video under the term “display.” Forrester predicts that between 2014 and 2019, ad spend in these two categories will double.

How Mobile Will Impact Display and Video

Mobile has clearly impacted the marketplace drastically, and the lion’s share of internet marketing has shifted its focus to mobile. The mobile revolution will naturally also affect the display and video advertising markets.

Business Insider claims that mobile display and mobile video ad revenue will grow at 96% and 73%, respectively.

And by 2019, Forrester says, nearly 40% of all online video and display ad spending will come from mobile.

Facebook earns 73% of its revenue from mobile, so it’s no surprise that the social network is pushing hard in that direction.

Automation and Mobile

Mobile advertising has quickly become a sticky quagmire of ad networks, exchanges, and resources. While major networks such as Facebook and Google predominate, they certainly aren’t the only ones on the market.

In fact, there are so many – and the buying process has become so complex – that full-service advertising platforms have arisen to meet the needs of mobile advertisers, whether they use display, video, or other formats.

GrowMobile, for example, allows advertisers to run mobile ad campaigns across a variety of industry sources, including social. It takes care of real-time bidding, management, and optimization.

This particular solution incorporates more than simply video and display ads, but the same automated processes are making their way into display and video. Programmatic and real-time bidding, for instance, have driven the creation of RTB platforms that cater exclusively to video.

Trends in Mobile Display and Mobile Video

Each year, new ad formats are released and tested by all the major advertising companies, such as Google and Facebook.

Last year, for example, Google released a variety of new ad formats, such as TrueView ads and anchor ads.

TrueView ads are video ads that are placed inside apps. And, like YouTube pre-roll ads, they can be skipped if the user wishes. Anchor ads, meanwhile, are “anchored” to the bottom of the screen until they are dismissed.

Facebook is also evolving its advertising tool chest. They have developed a product ad, for instance, that places a carousel inside users’ News Feeds.

But Facebook is taking advertising to a completely different level with their new immersive ads. These mobile ads take over the entire screen after a user clicks on an item in the news feed.

Once the item is opened up from the news feed, the user is taken to a mini-website of sorts. This immersive ad, then, can be an immersive, interactive combination of video, display, text, and so on.

From Display Ads to Hotel California

This trend towards an “immersive” ad experience mirrors the technological trend that we’ll soon see as mobile transitions to augmented reality and virtual reality. Facebook’s goal is to develop a “Hotel California,” of sorts – that is, an online platform that users never leave.

Inside this type of digital landscape, whether it’s mobile or inside a virtual reality environment, marketers will ultimately end up using a mixture of text, display, and video ads to reach their audience.

The display ad formats that Facebook has developed are worth paying attention to, particularly this year’s carousel ads and the immersive ad formats. Their innovative approach to fusing advertising, shopping, and social networking will become the norm, according to Deep Focus’ Robert Andrade.

Immersive Display and Video

Today, advertisers must weigh their options between display and video. Their choices will depend on a variety of factors, such as the distribution of their audience and their budget. The fragmented technological landscape we live in today probably won’t get any better, so the choices will remain the same.

In tomorrow’s immersive “Hotel California,” advertisers will likely need to choose between display, video, and a variety of 3D formats, based on whether the target platform is mobile, AR, VR, or a unifying platform that combines all of the above.

While the channels and the platforms may change, the marketers will still need to weigh their choices in the same way, since the distribution of technology will probably remain uneven for some time to come. 

Advertising Display Advertising vs. Video Advertising: Trends that Drive Spend