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Google Predicts Six Important Changes in Display Advertising

Vice President of Display Advertising at Google, Neal Mohan, took a stage yesterday at Interactive Advertising Bureau’s Innovation Days @ Internet Week and gave a keynote titled “There’s a perfect ad for everyone.” During his speech, Mohan said that display advertising business will start placing the focus on the users enabling them to interact with display ads in completely new ways. He made six predictions about the shifts that are going to happen in the display advertising space by the year 2015:

1. There will be a 25% decrease in the number of display ad impressions per person. Google’s head of Display Advertising sees this decrease as a positive change which will result in users seeing fewer online ads but of better quality, as opposed to being overwhelmed by the huge number of ads which fail to connect with them in a meaningful way. 

2. There will be a 50% increase in engagement rates for display ads. Mohan says that rate at which people interact with display ads will increase significantly as ads become more relevant and more engaging.

3. Users will have a direct say in a quarter of the ads they see. Users will have more control over when and how they see ads online.

4. 35% of campaigns will use metrics beyond clicks and conversions. According to Mohan, the key metrics for measuring ad campaign success will be factors such as emotional engagement and impact on offline behavior, enabling marketers to “deliver the ads that potential customers say they like the most.”

5.  25 billion ads each day will tell users why they are seeing them. “We believe it’s important to give people as much information as possible about why they see particular ads. That’s why we’ve always included an “Ads by Google” notice, and now the AdChoices logo, on ads across the Google Display Network,” Google’s Neal Mohan wrote in a blog post. The search giant believes that by 2015, this kind of notice will become ubiquitous.

6. For more than 40% of online Americans display ads will become their favorite ad format. According to a recent survey Google has conducted interviewing over 1,000 US internet users around the ad formats they prefer, the number of people who said they preferred display ads came very close to the number who liked cinema ads and glossy magazine ads that have been used for more than 50 years.

For more information you can watch Neal Mohan’s entire keynote here.