Google predicts ‘golden age’ of display ads at hand

Google is very bullish about online display ads. And that’s no wonder because as Google’s Barry Salzman, managing director, media and platforms for the Americas admits, more than 99 per cent of the search engine’s top 1,000 advertisers are deeply into display advertising.

At the Advertising Week 2011 conference in Toronto, Salzman revealed Google’s 7 predictions on the future of display ads for 2015.

Salzman also advised marketers and advertisers to keep a close watch on the online video space as it is a growing channel for their ads. “At Google, we’ve recorded that every minute as much as 35 hours worth of video is uploaded on YouTube.

“Our study illustrates the tenacity of people to stay up for hours to watch video…but more importantly for people in the industry it shows that viewers will exercise the choice to watch an ad with their video if given a choice,” he said.

Salzman also highlighted the importance of the growing popularity of various mobile devices to marketers and advertiser. “Mobile devices will be the first screen that people will view. In the future, you will not survive without mobile marketing.”

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Google’s top 7 predictions for display ads in the next five years

1. Fifty per cent of display ads will include cost per view video – This prediction is accompanied with the launch of two new video ad formats on Google’s YouTube: One is an “in-slate” format that enables users to choose which ads they want to view and the other is an “in-stream” feature that selects a video ad which the user can click out of if he or she wishes to. Salzman said Google is able to capture opt-out data from the in-stream method to predict what ads to display for the user in the future

“Rather than bombarding viewers with advertising, we can show them fewer ads that have more impact and value for the viewer,” he said.

2. Half of audience will be buying in real-time – Google did more transactions through the company’s DoubleClick ad exchange than all of the stock markets in the world combined. DoubleClick develops and provides Internet ad serving services. Its clients include agencies and marketers who service customers such as Microsoft, Motorola and Coca-Cola.

3. Mobile will be the number one screen – By 2014, mobile device users will overtake fixed computer users. “In five years, a consumer’s first experience with every brand will be on a mobile device,” said Salzman.

Related story: Canadian firms win big time with mobile marketing

4. Clicks will no longer be sole metric – By 2015 marketers and advertisers will no longer rely on “clicks” in measuring the performance of their campaign. “There will be five new metrics that will be more important and widely used that the click,” said Salzman. “Clicks are the last form of metrics advertisers want because they do not correspond with the data they provide.”

Too bad, Salzman said he can not name what those metrics will be right now. But he said the metrics will likely have something to do with “audience experience and emotions.” This he said could involve video views, engagement and interaction rates.

5. Seventy-five per cent of ads will be socially enabled – Social marketing will become stronger and more prevalent in the next five years. These ads will enable a “two-way conversation” between buyers and sellers which the Internet had long promised, Salzman said.

Related story: Tweet nothings won’t get you hard somethings, Google expert warns marketers

6. Rich media will be in 50 per cent of brand campaigns – Static banners will be a thing of the past, according to Salzman. During his presentation, the Google executive demonstrated ads on the Globe and Mail which not only featured display ads but also live streaming video and real-time Twitter feeds. Through this method, not only do advertisers reach an individual but also the “friends” of that person. “This will grow the display ad pie for everyone,” Salzman said.

7. Display will be a $50 billion industry worldwide – And Canada will account for about $2 billion of that market, according to Salzman. “The Golden Age of display advertising is right before us,” he said.

Nestor Arellano is a Senior Writer at ITBusiness.ca. Follow him on Twitter, read his blog, and join the IT Business Facebook Page.

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