Since its beginning in 1994, display advertisements have staked their claim in the advertising world. Display ads were said to be a very lucrative business, with popular sites such as Yahoo charging $30, $50, and even $100 per thousand impressions to run these ads on their pages.
The venture capital community also got wind of this and invested billions of dollars, which eventually led to the venture capital boom of the web. With huge investments, thousands of sites were created and ads were simultaneously appearing on computer screens, whether consumers liked it or not.
However, over the years, the AdTech industry has seen a decline in banner ads, which ultimately forced them to look into other alternatives.
Why Display Ads are Taking a Big Hit
According to a study, only 2.8% of participants thought that ads on websites were relevant. The AdTech industry figured this out and began to develop solutions that carefully targeted consumers and track their every move. Even though display ads have become more relevant, they are still taking a big hit.
Lack of user experience and invasiveness…these are the current issues that give display ads a bad reputation. These ads are still popping up, creeping and crawling across computer and mobile screens, but this time around, consumers have figured out ways to tune them out.
So the question is…what’s the next step?
Is AdTech Moving More Towards Native Ads
While many in the AdTech industry are still advocates of banner ads, there is a growing amount who are leaning more towards native ads. With native advertising, AdTech can provide advertisers with the tools to display ads that don’t disrupt the user experience and even educate their consumers on products or the brand itself.
How Can AdTech Improve the use of Display Ads
Although the growth of native advertising is spiking, there’s still hope for display ads. What the AdTech industry must do is convince advertisers that display ads can be still be successful. This can be done by developing products that can control the volume of ads per page, provide rich media (video, audio animation etc.) and make display ads mobile friendly.
The biggest factor that AdTech must consider is invasiveness. By doing this, they should incorporate a content feature or tool in their product that would give advertisers the ability to tell great stories that will entertain or move the consumer. By using such features or tools, advertisers will see higher engagement, greater social conversations and brand lift. The days of hard-sell tactics are over.
Will display ads eventually disappear? No, many have predicted that they will be around for a long time. By 2016, display ads spending is estimated to reach $11 billion. Will display ads ever see the success that it once had? Well…this strongly depends on the AdTech industry and it’s ability to offer advertisers the tools to successfully engage the consumer.