More spent on branding is key for display ads

Although search may make more money than display advertisements, eMarketer has forecast that growth in display ad spending will surpass that for paid search through 2014. Additionally, from 2011 to 2014, online display spending is projected to grow faster than overall online spending while spending on search stays slightly behind.

It is predicted that we will see a large rise in online video advertising with a projected growth of 34% each year through 2014—this will be a major factor driving the increase in display advertising.

In 2010, eMarketer estimates US advertisers will spend $12.37 billion on paid search, compared with $8.88 billion on online display ads. Search will still get the most dollars in 2014, at $18.84 billion, but display will have closed the gap somewhat to reach $15.92 billion in spending that year.

“The growth of display doesn’t necessarily mean that advertisers are spending less on search,” said David Hallerman, eMarketer principal analyst.

Additional money will come to ad spending online as the trend emerges for more spending on branding. Certain display ads like static banners have a reputation for low clickthrough rates yet they still serve an important branding purpose.

Brand oriented online advertising is expected to increase in the U.S by 2014: it is display’s high growth rates, and the dramatic growth expected in online video advertising, that will be the main factor behind this trend.

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