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Internet Ads: Search, Display and Video - US - May 2015

Internet Ads: Search, Display and Video - US - May 2015

"Online advertising revenue is expected to reach $79.6 billion by 2019. Search and video have historically driven the market, but consumers are increasingly ambivalent about ads that disruptive their normal online experiences. Given that consumers also now have tools, such as ad blockers, that offer them greater control over the digital content they see, online advertising must be more contextually aware and especially relevant to its audience."

- Bryant Harland, Technology and Media Analyst

This report discusses the following key topics:

How consumers respond to online advertising
How consumers feel about video, search, animated, and static ads


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Figure 1: Total US revenue and fan chart forecast from internet search, banner display, and online video ads, at current prices, 2009-19
The issues
Figure 2: Actions taken in response to ads, January 2015
Figure 3: Receptiveness to advertising by type, January 2015
Consumers and online privacy
Figure 4: Opinions regarding online ads – Any agree, January 2015
The opportunities
Figure 5: Actions taken in response to ads, January 2015
Figure 6: Usage and viewing of online ads, January 2015
Many consumers are interested in personalized ad content
Figure 7: Opinions regarding online ads – Any agree, January, 2015
What it means
THE MARKET
What you need to know
Search and video ads will push the market
Banner ads struggle to maintain momentum
Market size and forecast
Online advertising revenue to reach $79.6 billion
Figure 8: Total US revenue and fan chart forecast from internet search, banner display, and online video ads, at current prices, 2009-19
Figure 9: Total US revenues from internet search, banner display, and online video ads, at current prices, 2009-19
Market breakdown
Search among the fastest growing segments
Figure 10: US revenue and fan chart forecast of internet search ads, at current prices, 2009-19
Banner advertising overshadowed by other ad formats
Figure 11: US revenue and fan chart forecast of internet banner ads, at current prices, 2009-19
Online video ad revenue to almost double by 2019
Figure 12: US revenue and fan chart forecast of online video ads, at current prices, 2009-19
Mobile to represent a growing share of all digital ads
Figure 13: US revenue and fan chart forecast of mobile ads, at current prices, 2009-19
Market factors
The push for ad viewability standards
Broadband speeds continue to increase
KEY PLAYERS
What you need to know
Search shows positive appeal
Pressure builds around online video
Consumers and regulators will expect transparency
What’s working?
Search is the best received among consumers
Figure 14: Receptiveness to advertising by type, January 2015
What’s struggling?
Consumers ambivalent about video
What’s next?
Behavioral targeting will get smarter
FTC raising the bar on online privacy and disclosure practices
Mobile will be the next frontier for video
THE CONSUMER
What you need to know
Consumer reactions to advertising
Challenges: Active avoidance and indifference
What consumers want from their ads
Online research habits and categories researched
Top categories researched online
Figure 15: Products and services researched online, January 2015
Frequency of online research
Figure 16: Number of products or services researched online, January 2015
Frequent researchers likely to contact brands
Figure 17: Actions taken in response to ads, by number of products or services researched online, January 2015
Role of internet advertising in research
Consumers divided in using ads for research
Figure 18: Use of advertising in research, by age, January 2015
Consumers consider ads in research without realizing it
Figure 19: Use of advertising in research, by actions taken in response to advertising, January 2015
Online ads: Interaction with brands versus independent research
Figure 20: Actions taken in response to ads, by use of advertising in research, January 2015
Top five actions taken after seeing online ads
Figure 21: Actions taken in response to ads, by gender and age, January 2015
Response to online ads, by Hispanic origin
Figure 22: Actions taken in response to ads, by Hispanic origin, January 2015
Online advertising viewing habits
Ad blocking software usage
Figure 23: Usage and viewing of online ads, by age, January 2015
Opportunity: Allow consumers to customize the ads they see
Figure 24: Usage and viewing of online ads – interest in ad customization, by actions taken in response to ads, January 2015
Ads used for product discovery
Figure 25: Usage and viewing of online ads, by actions taken in response to ads, January 2015
Perceptions of various ad formats
Consumers favor search
Figure 26: Receptiveness to advertising by type – Positive, by gender and age, January 2015
Blacks receptive to social ads and online video
Figure 27: Receptiveness to advertising by type – Positive, by race, January 2015
Opinions regarding online advertising
Consumers’ concerns over privacy
Figure 28: Opinions regarding online ads - Any agree, by age, January 2015
Active ad avoidance: More than one-third of consumers willing to pay for ad-free services
Figure 29: Opinions regarding online ads - Any agree, by household income, January 2015
Cluster analysis
Figure 30: Target clusters, January 2015
Digitally engaged
Conflicted researchers
Active avoiders
Deal hunters
APPENDIX
Data sources and abbreviations
Data sources
Fan chart forecast
Cluster methodology
Abbreviations and terms
Market
Total online advertising market
Figure 31: Total US revenues from internet search, banner display, and online video ads, at inflation-adjusted prices, 2009-19
Internet search advertising
Figure 32: Total US revenues from internet search advertising, at current prices, 2009-19
Figure 33: Total US revenues from internet search advertising, at inflation-adjusted prices, 2009-19
Online banner advertising
Figure 34: Total US sales and forecast of online banner advertising, at current prices, 2009-19
Figure 35: Total US sales and forecast of online banner advertising, at inflation-adjusted prices, 2009-19
Online video advertising
Figure 36: Total US sales and forecast of online video advertising, at current prices, 2009-19
Figure 37: Total US sales and forecast of online video advertising, at inflation-adjusted prices, 2009-19
Mobile advertising
Figure 38: Total US sales and forecast of mobile advertising, at current prices, 2009-19
Figure 39: Total US sales and forecast of mobile advertising, at inflation-adjusted prices, 2009-19
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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