Display advertising and search: a symbiotic relationship

Display Advertising is still changing rapidly as new technologies and innovations come along and are put to the test. That may be why display been gaining as a percentage of overall online advertising revenues

A spring 2012 Econsultancy and Responsys survey of companies worldwide found that of the top four trends deemed most important to the future of display advertising, three were related to integration. Increased integration with social media topped the list, followed by integration with search.

“The insights derived from search intent modeling, along with the paid search and SEO pieces of larger marketing activities, all help support other brand advertising, both online and offline,” noted eMarketer principal analyst David Hallerman.

A study by iProspect revealed that there are as many Internet users who respond to online display ads by performing search as those who directly click on the ad. This means that ads are not only meant to be clicked. They also influence netizens on how they behave when using search engines.

Key findings of the study indicate that while online display is an effective marketing channel on its own, its effectiveness does not end there; its power is substantially improved when it is paired with search engine marketing. So based on the results of this study, online banner marketers should leverage on the power of search marketing to yield better ROI numbers.

More than half of Internet users (52%) actively respond to online display advertising, demonstrating that this is an effective channel to facilitate interaction with a brand; almost a third (31%) respond by clicking on the ad itself.

Nearly four in ten Internet users (38%) who respond to online display advertising learn about a brand for the first time as a result of their exposure to such an ad. This finding validates display as a viable channel for building brand awareness and not just driving sales.

This strongly indicates the power of online advertising in terms of attracting Internet users to perform search queries related to the advertisement.

38% is a big portion of Internet users exposed to the ads that search for the company, product or service so it will be a missed opportunity if one sees an ad of a new digital camera decides to Google it but doesn’t find the official website on search results.

Responding to an online display advertisement conventionally means simply clicking on them. But a new spin into this response now means in addition to clicking, which accounts less than a third of the total number of impressions, going online and making relevant search query. This tremendously helps reveal the effectiveness of an ad. And while it is difficult to directly quantify the number of people performing related search in a real-world scenario, this study should prove the point.

Google’s display business is growing faster than anticipated—and is set to surpass Facebook’s next year, according to forecast a made earlier this year by eMarketer.

Net US display advertising revenues at Google reached $1.71 billion in 2011, just below the $1.73 billion Facebook earned the same year, according to eMarketer. This year, US display revenue growth at both companies will be nearly identical—around 48% year over year—with Facebook expected to earn $2.58 billion in revenue, compared to Google at $2.54 billion, eMarketer estimates.

Google is expected to surpass Facebook in 2013, when the company’s US display revenues grow 45.3% to $3.68 billion, eMarketer estimates. US display ad revenues at Facebook will grow 27.6% to $3.29 billion that year.

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