Display Ad Spend Increasing in 2016

Search advertising seems to be the “ol’ faithful” of digital advertising. It is usually the first type of online advertising a company tries, and they usually keep it as they explore additional online marketing avenues.

For the first time ever, advertisers in the U.S. will spend more money on display ads—specifically traditional banners, video, and native ads—than they will on search ads. According to eMarketer, display ads are projected to grow by 23% this year. Don’t get us wrong; money is still going to search ads, in fact, they are projected to grow by 10%. However, this increase in display is evidence to the fact that brand advertisers who love TV are shifting their budgets to online. Display ads are more accommodating to TV-style brand awareness campaigns versus search ads, which are most commonly used more for direct response efforts.

Though pre-roll ads seem to be the logical shift from TV to online, traditional banners and native ads will continue to grow over the next few years. Advertisers are expected to spend the remaining digital budgets on rich media ads and various sponsorships.