Key takeaways from the online advertising industry


Nov. 20 2020, Updated 5:22 p.m. ET

Industry developments

The online advertising industry is growing at a much faster pace. The increase is driven by growth in display advertising, social media, online video advertising, and mobile advertising. With the increased Internet penetration and mobile usage, end customers around the world are driven more by technology. They prefer digital communication.

This is an exciting opportunity for advertisers and marketers around the world. Through the Internet, they can reach the right audience, at the the right time, and with the most effective message.

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With the advent of programmatic buying, technological development in buying media space. This is helping advertisers and publishers benefit from the internet platform. Advertisers are expanding their expenditures on online advertising formats. Online advertising formats are easy to measure. They’re a more effective medium than traditional formats.

Internet companies—like Google, Yahoo, Microsoft, Facebook (FB), Twitter (TWTR), and LinkedIn—witnessed a strong revenue growth rate. They’re increasing their market share in the internet advertising market. Google (GOOG) (GOOGL) is still the undisputed leader in most of the markets. However, other players—like Facebook, Amazon, and Yahoo—are now threatening Google’s dominance. To learn more, read Why Amazon and Facebook are trying to cut Google’s ad business.

Video ads carry the highest click-through rates

The video ad business started to become a growth business for Internet companies. Video ads attract a higher number of clicks than any other form of online advertising. Google’s video platform, YouTube, is a market leader in the video ad market. Read more about this in Must-know steps Google is taking to grow its YouTube business.

According to a report from BI Intelligence citing DoubleClick, video ads carry high click-through rates of 1.8%—compared to only 0.6% for mobile ads, 0.2% for display ads, and 0.1% for Flash ads. You can see this in the above chart.

It isn’t surprising that in addition to Google and Facebook, players like Yahoo (YHOO) have also been trying to bring premium video content to their users. Earlier this year, Yahoo announced two original series—Other Space and Sin City Saints—to debut on Yahoo Screen. During the second quarter, Yahoo also started to offer an online comedy series. It also forged a partnership with Live Nation to stream concerts on Yahoo.

For the latest updates and industry news, visit Market Realist’s Tech, Media, and Telecom page.


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