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The digital advertising market is evolving extraordinarily quickly.
Traditional online banner ads designed for PCs — and the legacy ad networks that support them — are being displaced by a new generation of formats and technologies.
All the significant growth is in these new areas: programmatic (automated ad trading platforms), video, and mobile advertising.
At BI Intelligence, Business Insider’s paid research service, we’ve been tracking the trends that will drive a reallocation of marketing budgets away from traditional media, and into digital. For more in-depth analysis and downloads of our charts and data on the digital media industry, including our annual Future Of Digital deck, subscribe today.
1. Mobile will drive digital growth going forward. Mobile will be largely responsible for pushing digital past TV in terms of its share of U.S. ad spending by 2017.
2. Mobile is the fastest-growing ad medium, and will see 43% annual growth between 2013 and 2018. Display ads, search ads, and video ads appearing on mobile screens are grabbing an ever larger share of U.S.-based advertising budgets. In the chart below, mobile includes all ad formats — including video, search, and display — on mobile, as well as SMS ads.
3. Companies that specialize in programmatic ad buying technology are driving impressive growth, and there is some industry consolidation (Example: AOL’s ownership of Ad.com and Adap.tv). Real-time bidding, or auction-style buying of impressions in the milliseconds before pages load, is the dominant form of programmatic.