In the recently released “North American Online Display Advertising Forecast,” Forrester Research announced projected gains in online display advertising. With a compound annual growth rate of 13.7%, online display advertising is projected to reach $37.6 billion by 2019, up from $19.8 billion this year. Compared to the 1% projected annual growth in offline advertising, it is clear that online display is the avenue most marketers are gravitating to.
The Online Display Advertising Forecast also revealed that 80% of 18-34 year olds and 66% of 35-54 year olds report watching online video monthly. Online video advertising is expected to increase more than 20% a year as marketers take advantage of increasingly sophisticated targeting methods. Improved targeting will push online video CPMs higher with projections showing CPMs over the $25 mark. The increase in online video advertising is expected to account for approximately 54% of the growth in overall online display revenue.
Other key findings in the Online Display Advertising Forecast include:
- Online video spend increasing from $4.9 billion this year to $12.6 billion in 2019.
- Rich media (excluding video) is projected to grow from $6 billion to $7.4 billion.
- Static display advertising is expected to decrease to $3 billion from $4 billion.
- The number of smartphone and tablet users is expected to increase to 427 million from 323 million by 2019.
- This increase in users is expected to spur growth in mobile display advertising by an approximately 25% compound annual rate.
If your brand is looking for ways to expand into online advertising, call Qiigo today at (404) 496-6841.