Google plans to make display ads as crucial as search advertisements

Google executives claimed that display ads will become as crucial to its business as search advertisements are during the keynote session of a international interactive advertising awards competition. They predicted that "smart and sexy" rich media ads will make the static ad banner become a thing of the past, and that in five years the online display market will grow from $20 billion to a $50 billion business, 75% of ads will be "social" (meaning that people can comment on them), and that people will be able to subscribe to them (receive notices when similar ads are available to watch).

Caroline McCarthy in Google: We're too sexy for your search talks about how Google is "unapologetically and enthusiastically optimistic about this space." Amiri Efrati in Google Wants to Make Online Display Ads ‘Sexy’ and Mike Shields in Google Sees 'Smart and Sexy' Future for Banner Ads describe a TrueView ad format for Youtube. Its designed to give viewers the option to skip an ad (after 5 seconds) that they don't want to watch, and to chose from multiple ads which one they want to watch (similar to Hulu). They will alter creative elements of an ad in real-time, depending on factors like the viewers location, the web sites content, and the time of day. Advertisers will only pay if a user decided to view their ad.

A YouTube executive stated that while television networks generally make more money by showing more ads, online video will reverse that trend. Google also predicted that 50% of all targeted ads will use a real time bidding system. In their case they will use technology from last years purchase of ad company Teracent .

Comments

[searchtools]

I would love an ad system smart enough to know that I hate anything that blinks flickers or scrolls, that I'm a consumer who can be appealed to in terms of quality and enviro-friendlness, and that I skip ads 99:99% of the time and mute them if I can't skip (thankgoodness for tivo). Because that's not attractive to advertisers, I bet they never will cater to me. In return, I use AdBlockPlus and Click2Flash, and keep my sanity.