Webinar Recap: Exchange-Based Buying, Online Video, And Mobile Display Drive Online Display Advertising Growth Through 2019


By Keri Medeiros | Media Operations Specialist

Last month, Samantha Merlivat, a researcher on the Marketing Leadership team at Forrester Research,  hosted a webinar highlighting key trends that will drive display advertising revenue to grow tremendously over the next five years and influence marketers’ online display advertising strategies.

Merlivat notes that a key driving force behind this growth can be attributed to programmatic exchange-based trading, fueled by an uptake in video advertising, rich media, and mobile display.

I really enjoyed this webinar, and wanted to share an overview of Merlivat’s findings.

Programmatic is going mainstream

As marketers begin to embrace programmatic to improve campaign performance, it is expected that 40% of revenue will shift to programmatic by 2019, up from 27% in 2014. Enhanced targeting, optimization, and efficiency gains are some of the key potential benefits of programmatic buying.

New types of inventory are opening up for programmatic trading

Premium publishers are beginning to open their inventory to open and private exchanges. Some examples of these premium publishers include The New York Times, Time Inc., Condé Nast, Hulu, and Viacom. Additionally, broadcasters are testing programmatic trading for their online video inventory.

The addition of premium inventory to ad exchanges will continue to drive up average CPMs, and it is estimated that CPMs will hit $4.34 in 2019 (up from $3.31 in 2014).

Rich media and video are becoming widely available on exchanges

Rich media and video will become a driving force behind growth in display advertising spend, as these ad units continue to outperform static display.

Rich media spend is expected to grow by 4% by 2019. Video is expected to grow (Desktop) by 21% by 2019 – Nearly tripling!

The rise in video spend can be attributed to consumer behavior, as more and more consumers are watching video content online— ranging from video clips on YouTube, publisher and broadcaster sites, as well as on-demand video.

Mobile display takes off as Mobile and Tablet adoption keeps growing

Merilvat’s findings indicate that mobile display advertising revenue is expected grow at an average rate of 24.5% between 2014 and 2019.

So, what is driving this growth?

  • Mobile adoption keeps growing

There are currently 213 million U.S. consumers using smart phones. This is expected to grow to 257 million by 2017. Additionally, there are currently 110 million tablet users in the US today, and this is expected to grow to150 million by 2017.

  • Mobile retail fuels mobile display

Mobile devices play an increasing role in the path to purchase. For consumers completing transactions on a laptop/PC, tablet and smartphones still play an important role in product recovery as consumers often browse retail sites on their devices prior to completing a  transaction on a laptop/PC.

  • New mobile displays formats emerge

Static display on mobile is slowly shifting away from being the norm, as rich media and video formats for mobile continue to grow. For example, IAB now has strict guidelines for Mobile Rising Star Ad Units. Additionally, the expansion of 4G in the U.S. will continue to improve delivery capabilities for these new creative formats.

What are some of the implications and challenges of this growth, and how will this influence marketers’ online display advertising strategies?

Transparency. Brands will continue to increase investment, but concerns of viewability and fraud will mitigate increase in spend.

Advertisers will need to push for guarantees on viewable impressionsViewable CPMs (vCPMs) will continue to gain traction, however, vCPMs will not gain traction as quickly for video as they will for display.

Private marketplaces and programmatic direct will help tame marketers’ concerns, as they provide more control over audience targeting, brand safety, viewability, and fraud.

To access Merlivat’s webinar, visit the Forrester Research webinar library.