Google is convinced online display advertising will be a $200 billion industry.
Neal Mohan, the company’s VP of display, explained how he arrived at that figure.
The market today is between $20 and $30 billion. I say $25 billion.
If you took the amount of audience attention online divided by the media dollars online and measured it to other offline channels, that $25 billion today alone should be $75 billion. So there’s $50 billion of opportunity that we all are missing out on because of fragmentation and friction and complexity.
That’s the first step. Before we talk about sexy formats and targeting, etc, there’s an inefficiency and friction problem that we need to address.
Beyond that, if you take what’s on top of that $75 billion market, there’s a TV market that’s going to move to a digital channel. That’s a $170 billion market globally today. What happens when we are all consuming video – whether we are watching it on a TV screen or not – via some sort of digital distribution, which I think no one would argue is not going to happen in the next few years? Then the type of advertising looks and feels a lot like display advertising.
You just add up a couple of those chunks and you’re pretty far north of $200 billion pretty quickly.
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