Search becomes Real time? Google and Invite signals the wave?

I know this is number 9 in my original post of things to come in the future but how apt is it now with Google purchasing Invite Media.

Display and search uniting some time soon in the future?

IAB for this month just released US Figures for 1st quarter 2010 and it’s a staggering 5.9 BN USD which represents a 7.5% increase over last years 1st quarter. If that’s not an indication of the movement we will see in this industry then I don’t know what is given all the economic and global challenges we are seeing.

It looks like display the ugly brother to Search is catching up fast. Search is roughly trending at 11BN per quarter (USD) in the US. Now let’s think about the behaviour of users. Most users are getting savvier in remembering specific sites for their engagement with the net, most users are now watching a greater % of video online – so the user behaviour is changing from searching to engaging. What does that mean for the online industry?

Effectively more eyeballs on online TV and social sites will mean that more and more people will find display ads more compelling and more engaging then a bunch of words and urls scrapping over a video. Search will naturally see a downturn whilst display will grow due to the way users engage with the internet. Hardware is accelerating that growth with the ipad and iphone so video will grow like crazy. Whilst that happens Google has realised that it needs to protect its search business as well as double dip into display and in doing so you will start to see the convergence of media.

There are many differences in the way search works and display but the biggest challenge is creatives and targeting. These differences are slowly eroding but the metrics they use are very similar. Eventually you will be able to see dynamic ad serving then you couple that with real time bidding and you get a very compelling and powerful advertising product. Search and Display have worked in silo but with the announcement by Efficient frontiers on their new ad exchange; search and display will naturally be both biddable and campaigns will truly compliment both offerings to lead to a better ROI for the advertiser.

Marketers will need to be flexible to this new change  – the days of ad planning will now become campaign planning with leveraged optimisation that will give the best ROI to advertisers, the level of behavioural targeting will propel relevant ads/search being thrust upon users who will convert and eventually the world of advertising once plagued with being irrelevant will become relevant.

The question is these changes are coming, not all changes will happen simultaneously – so what happens when and how can each value chain member protect themselves? Not all will survive.


About adsolver

Ad-exchange expert with Rightmedia and Yahoo. Strategist on the evolution and ecology of the international display digital platform. Specialties: Evanglising Glocal digital marketing with outstanding experiences in Ad Exchanges, Behavioural Targeting, eCommerce, Multivariate Testing and data mashing. Have worked previously in the following industries: Internet ebusiness solutions multivariate testing Oil and Gas experience and Renewable Energy White-labelling Travel websites Telecommunications Advertising Exchanges
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