Stats from multiple sources show that U.S. display advertising spend will climb in the next two years.
Content Takeover Display AdvertisingThis week we’re delving deep into the world of display advertising, to bring you some of the hottest topics and trends that fall into the space. But in order to do that, we also felt it was important to compile a bunch of stats from different sources that show you just how important display really is. Enjoy!
1. U.S. display ad spend to reach $37.36 billion by 2017
Although many in the industry are weary of display advertising due to concerns around fraud, bot traffic and viewability, eMarketer estimates that digital display ad spend in the U.S. will total $27.05 billion this year and will reach $37.36 billion by 2017.
2. Facebook and Twitter together to take 33.7 percent of U.S. digital display market by 2017
The same eMarketer report shows that Facebook and Twitter together will represent 33.7 percent of U.S. digital display market by 2017, compared to 30.2 percent this year. Specifically, Facebook’s U.S. digital display ad revenues will reach $6.82 billion in 2015, accounting for 25.2 percent of the overall market. By 2017, Facebook’s portion will reach 26.9 percent.
Twitter, on the other hand, will represent 5 percent of the total U.S. digital display ad revenues this year and surpass Yahoo for the first time. The platform will keep the momentum and take 6.8 percent by 2017.
3. 60 percent of mobile display ad dollars to be spent on programmatic
«Programmatic Advertising 2015» by eMarketer reveals that this year, the amount of U.S. display spend transacted programmatically surpassed that of traditional direct sales for the first time. Meanwhile, 60 percent of mobile display ad dollars will be spent in a programmatic manner.
4. Facebook outpaced Google in programmatic display growth
Digital marketing company IgnitionOne found that in Q3 2015, spend on Facebook Exchange (FBX) grew by 40 percent while Google dropped 19 percent. And the cost of Facebook ads continued to increase, with effective cost per thousand impressions (eCPMs) up 33 percent compared to 2014.
5. Ad blocking to cause $21.8 billion ad revenues loss
A report, released by PageFair and Adobe in August of this year, estimates that $21.8 billion has been lost in ad revenues in 2015 due to ad blocking. In the U.S., the loss is expected to reach $10.7 billion this year and $20.3 billion next year.
There are now 198 million monthly active ad blockers, according to the report. In Q2 2015, the number of ad block users worldwide increased by 41 percent compared to the same comparable period the year before.
6. A 70 percent viewability threshold
Viewability is a big issue in display advertising. In its «State of Viewability Transaction 2015» statement, the Interactive Advertising Bureau (IAB) says that the achievement of 100 percent viewability is «unreasonable». Instead an ad campaign should reach a 70 percent viewability threshold, while the industry transitions to buying and selling ads on a viewable impression basis.
The industry standard requires that for desktop display ads to be considered viewable, 50 percent of their pixels must be in view for a minimum of one second. For desktop video the standard is 50 percent for 2 seconds.
7. Display ad viewability remained 46 percent between 2013 and 2014
In March of this year, comScore released a report showing that display ad viewability rates did not budge between 2013 and 2014, remaining at 46 percent thoughout.