The future of online advertising

In Uncategorized by MediaVision

As search engines become critical to life online, the future of online advertising becomes increasingly blurred. We find ourselves searching for the website we are looking for even when we know the URL. Its laziness really but we all do it, everyday. This just emphasises how all online activity starts with the search engines.

Have we become immune to advertising, sponsored ads and those annoying banners and popups. Has our selective viewing officially kicked in? I think it definitely has.

The only real solution is change; a rapid and meaningful change in online advertising is desperately needed.
As ad-blindness becomes more prominent in society, Google continues to take in 40 percent higher profits quarter after quarter. Google has started integrating video into AdSense, and overlaying ads on YouTube. The fact that they continually spend money on ad display companies and prime real estate like YouTube means that advertising is in fact still thriving.
There are some changes happening at Google, and as Tiernan Ray mentions “the convergent optimizer” will be launched in beta soon:

Google co-founder Sergey Brin talked about a new initiative rolling out this quarter, called the “convergent optimizer,” currently in beta-testing. It will allow ad clients to bid on how much a Web user is worth to them, and then Google will figure the math of how much that client should spend to buy a keyword. Brin said the company was seeing higher click-through rates than expected for ads it has been placing at the bottom of YouTube videos.
It`s all about trial and error and constant testing, Microsoft and Google have different approaches but it appears as though both are experimenting. Microsoft gets the bulk of its advertising revenue from display ads, banners, video spots etc. Because Google is newer to display ads, Microsoft may benefit if more buyers embrace the format.

According to McAndrews, head of advertising and Publishing at Redmond, Search has been a significant driver of growth for the online ad industry. He reckons that in the next several years, it will not be as much of a driver. Some of the emphasis will shift more toward display ads, toward video, toward rich media. I don`t see this happening anytime soon but it`s a curious prediction.
There is still an huge imbalance on the advertiser side as the smaller advertisers are being bullied out of the SERPs (Search Engine Results Page) by the big brand boys who are dominating PPC and thus driving its cost up and up. These guys are opting out and focusing their efforts on the organic results instead.

We have become blinded by advertising and clutter thrown at us; just like a bad habit, it is hard to reverse. Online advertising needs to converge. However, I don`t think this will ever replace search, because search will always be the starting line.

It is a battle and there certainly is a growing need for more comprehensive and innovative advertising channels. If the Big search engines like Google want to maximize the return even further they need to make an active effort to tap into different avenues. Social media like YouTube and Facebook Widgets is only the first phase…

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