Major drivers fueling this advertising spending include explosive growth in display inventory, increased paid click volume, and better targeting technology.
“The rapid growth of social sites online has accounted for considerable growth and availability of inventory now available to advertisers,” said Emily Riley, Analyst at JupiterResearch.” Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory.”
JupiterResearch found static image and text advertising will be the two most popular display formats in 2007, comprising over two thirds of online display revenue. Growth of text and static ads this year is due to the massive increase in remnant impressions available across social networking sites. However, new publishers will continue to improve their advertising mix, and will shift towards more lucrative rich media and video formats over the next few years.
“This is a time of considerable opportunity for online media properties, interactive advertising agencies, and marketers,” said David Schatsky, President of JupiterResearch. “Making the most of the opportunity, though, requires tracking evolving consumer behavior closely, employing appropriate targeting and measurement technologies, and a willingness to experiment with evolving formats and tactics.”
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