July 2, 2014


Evolution of Online Digital Advertising Space

Online digital Advertising has emerged as one of the fastest growing industry in the recent years. In 2014 the online digital advertising spends were over 137 Billion US$ considered globally by eMarketer, that was up by 20% spending back in 2012 that was at 104.5 Billion US$. The Online digital Advertising trend started and has taken over the total print ad spending over the years, let alone broadcast advertising.

Online digital Advertising has become one of the most cost-effective ways for major businesses to highlight their presence, become popular and entice more customers. Results have shown that the ROI is much higher with online digital advertising if compared with the other traditional means of advertising and promotional campaigns. This has therefore forced the businesses to spend more of their advertising dollars towards online marketing through digital advertising. Online digital Advertising promotes businesses with a variety of different tools. Some of the most popular ways of online marketing through connected devices involves social media, Blogs, Banner Ads, Search Ads, PPC Ads (Pay Per Click model), Bing Ads, Facebook Ads, Twitter Ads, Google Display Ads, Retargeting Ads, Mobile Ads, In-Game Ads, AdMob Ads, Email Ads, Video Ads, YouTube Ads, PPM Ads (Pay per mile or per 1000) amongst other ways.

Some of these latest trends in following diagrams show how the scenario has changed and will further enhanced change towards online digital advertising in the coming years.

The trends are similar if you compare digital online ad spending with broadcast advertising. Rise in the digital online spending has further initiated the trend of targeted advertising. I will throw more insight on the targeted, personalized advertising and commercial optimization in linear and non-linear space in my following blog. A decade ago, when I was in Canada, I was really amazed to see a personalized printed invite addressing me for a free checkup service camp of my vehicle. My name was a part of actual print with similar font and design of the whole invitation card. Even today when you get such personalized campaigns, I am sure the audience gets astonished.

With the help of technology, it has become really easy to know your customer and plan the advertising campaign. The personalized advertising is targeted for the right set of audiences based on their demography, genre, age group, location, interests and other factors that can create maximum impact and get maximum ROI on the planned campaign. With the use of technology and the correct tools, it is also possible to generate reports that can derive the actual impact in terms of the number of people who viewed the campaign and proceeded to the link and bought the product. The below diagram shows the campaign management right from the planning, implementation, optimization through reporting analytics of the end-to-end process of an online campaign advertising ecosystem.

Online Digital Advertising Campaign Eco-system

Let’s talk about the major players in this online digital advertising eco-system. The major share of the online advertising market is taken over by Google with close to 40% followed by Facebook, Yahoo, and MS. The scenario of the major players looks like as shown in the diagram below:

Most of the Media & Entertainment and Broadcasting players have already understood the impact of the online advertisement spends with changing graphs and have started their thought process aligned with the latest market trends. Let’s discuss through this blog what’s your thought process is and what you feel about the online digital advertising space and how it will influence and change the scenario of how things work. What will be the impact of this to the Media & Entertainment and Broadcasting industry?