Facebook Predicted to Lead Display Ad Revenue in 2015

Online advertisers are learning quickly, effectively adapting to the demands, preferences, and habits of consumers. Both social media and display ads have seein intense growth over the last few years. Analysts have predicted that they will continue to gain momentum as we approach 2015.

Social Ads’ $8.3 Billion Future

In our recent discussion of Twitter’s phenomenal tweet engagement, which hit as high as 52% user engagement for some tweets, we talked about how much potential Twitter advertising has – especially once they get their self-serve ad utility in place. The BIA/Kelsey forecast corroborates this.

The BIA/Kelsey report specifically predicts that, in 2015, social media ad spending will reach $8.3 billion. $7.7 billion of that, says the forecast, will come from display advertising on social sites like Facebook and Twitter. Text-based advertising, such as some of what Twitter has historically presented, is expected to grow – but will only account for $600 million in 2015. Facebook will remain the dominant player; the company already gets more ad impressions than Google or Yahoo!, and BIA/Kelsey analyst Jed William stated that “as buyer awareness accelerates and creative formatting and targeting improve to optimize performance,” Facebook should remain the top dog in impressions while becoming the leader in display ad revenue.

Other notable elements of the 2015 forecast include predictions of:

  • A $42.5 billion in total online advertising revenue.
  • $153.5 billion in local advertising revenue.
  • 23.6% of total ad spend being in online or other interactive mediums.

Display’s Future: Fewer Ads, More Interaction

Google’s Vice President of Display Advertising, Neal Mohan, recently gave a keynote address at the IAB’s Innovation Days. He predicted continued growth, but not just in the “more ads, more spend” arena. Rather, Mohan believes that display advertising will become more user-controlled and targeted, and that user engagement with ads will increase substantially.

Noteworthy predictions from Mohan include the following:

  • There will be 25% fewer ads displayed per user (i.e., an increase in focus and a decrease in screen clutter).
  • Display ads will see 50% more engagement (in the form of playing games, voluntarily playing videos, etc.).
  • 25% of all ads will be at least largely “user-determined,” through declared user preferences, the opportunity to decline or select ads, and other elements that add user control.

Whomever you ask, display advertising – on the mobile, social, and plain-old web format – have a bright and highly lucrative future to look forward to.

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