Google still has high hopes for its display-ad business. And it’s now leading a charge that someone desperately needs to lead, which is making display ads more interesting and effective.
(We often marvel at how little online display advertising has changed since 1995. Open a magazine or newspaper and you see vast full-page ads or pages that are three-quarters ad with a sliver of content running down the side. Most online ads, meanwhile, are small rectangles or boxes that are still intended to drive a “click”–which itself is absurd.)
In any event, Google’s on the case. Here’s the WSJ’s Amir Efrati’s description of Googler Barry Salzman’s comments at the IAB conference:
In five years, Salzman said 75% of display ads will be “social,” meaning people will be able to comment on them, share them with friends on social networks, or “subscribe” to them, implying that users could sign up to receive notices of when similar ads are available to watch. Google also said 50% of display ad campaigns will include video ads for which advertisers pay based on how many individuals viewed them, and that 50% of ads will use real-time bidding technology that wasn’t previously available.
In addition, Google demonstrated several new technologies including new video ad formats for its YouTube service, which Google calls “TrueView.” The YouTube ad formats, which will roll out later this year, give viewers the option to skip an ad if they don’t want to watch, or to choose from multiple ads the one they want to watch, similar to ad experiences on rival Hulu. Advertisers on YouTube only pay if the user chooses to watch their ad. Other YouTube ad initiatives charge advertisers based on how many users view ad.