I think nowadays online advertising is more popular than TV and radio ads taken all together. But what's the secret of such a rapid development of the online advertising industry?
As the competitiveness increases, the advertising/marketing demand increases sharply. Simultaneously, online advertising technology has dramatically evolved in recent years, thanks to preeminent advantages over traditional advertising, such as the possibility to target ads more specifically, a higher measurement accuracy and lower costs. As a result, annual revenue of the online advertising industry continues to grow strongly. In 2017, online advertising accounted for 41% of global advertising expenditure and is forecasted to increase in the coming years
Do you have any statistical data about the digital advertisement?
According to Magna (2017), worldwide advertising expenditure for digital channels represents a $209 billion market, accounting for 41% of the advertising industry. It has overtaken traditional advertising channels such as TV ads $178 billion (accounting for 35% of the market). The shift towards digital advertising spending demonstrates that brands and advertisers recognize the growing influence of online advertising channels.
What are the forecasts for the future?
Given the growth rate, Magna projects the expenditure of digital advertising will grow by 13% to reach $237 billion in 2018 and $300 billion by 2020. Another source, Statista.com estimates that digital advertising spending will reach $269 billion in 2018 and $335 billion in 2020.
Impressive! who is the leader in digital advertisement today?
According to global statistics, Google and Facebook are the leading providers of online advertising worldwide with revenues $95.38 billion and $33.84 billion in 2017, respectively (Statista.com, 2018).
Do you know the percentage ratio?
The figures show that Google and Facebook account for nearly 20% of total global online advertising revenue. In addition, other channels such as Twitter accounts for $3.26 billion in 2017 and estimated to have speedy growth in the coming time (Statista, 2018).
Are there any problems with the digital advertisement like with a standard printed advertisement or the ads on TV and radio?
Sure there are and the main is a trust between advertising buyers (advertisers) and sellers (ads platform publishers).
Please, tell more about it.
The problem of bayers is that they waste a lot of time on selecting the right ads platform and suitable publishers. Moreover, they are unable to evaluate the effectiveness and quality of advertising before actual implementation. This leads to uncertainty about the level of efficiency.
And what about publishers?
For sellers(ads platform publishers), there is a risk of non-payment, as they generally provide the service before payment is completed.
But there must be a way out!
Yes, but it has negative consequences. For instance, Google, Facebook and similar platforms hosting ads are forced to lock their customers accounts, due to them not having enough funds to cover transactions on due date.
