A recent survey by IAB/PWC has found that display advertising now accounts for almost one quarter of total online spend, driven primarily by commercial innovations in social media and an ever increasing number of video formats.

The study, reported in New Media Age, found that internet ad spend increased in 2010 by 12.8%, passing the £4bn.

Display advertising continued to rise by more than a quarter (27.5%) to a high of £945m, representing 23% of total online spend, an increase of 20% when compared to 2009. Social media display advertising rose by a staggering 200%, while 91% growth in video formats contributed to the channel’s resurgence.

Guy Phillipson, CEO, IAB, said that the figures supported the trend of the internet being used as a branding medium, with more and more brands looking to digital advertising as the core of their integrated campaigns.

Phillipson said, “ We’re now looking at 12.8% growth overall. The big change (from the last survey) is that we now know the full force of brands returning to online.”

He continued, “The big story, though, is social media and video. Advertisers are getting the reach and dwell time as well as the shareability. The sheer reach of social media, and the billions of impressions out there – and now you can target social ads to declared interests – is pretty powerful.”

Although the full details of the survey have not been released by IAB, it is clear that the main beneficiary of the resurgence in display advertising is Facebook. The social network accounted for 81.6bn page impressions in Q4 2010 alone, a recent survey by ComScore found.

 

Please note the views expressed in this blog are the views of the author, Andre Brown and do not represent the view of Locayta, its employees or its shareholders. For more information about Locayta, visit www.locayta.com