Where will you put your advertising money this year? If you’re like most businesses, you’re torn between SEM and display advertising. Both have their distinct benefits but which one is right for you?
The Current State of SEM
For years, businesses that did not want to wait for their website to reach the top of search engine results organically invested in search engine marketing (SEM). They launched pay-per-click campaigns targeting specific keywords to drive traffic to their pages.
Now, it looks like the spending on this form of marketing is growing at a slower speed than other forms of digital marketing.
Spending on ads in search engines is expected to grow by 10% in the United States, according to eMarketer. Although this seems like a healthy growth rate, and it is, it pales in comparison to the projected growth rate of display advertising.
Projections for the Display Advertising Industry
The same eMarketer study found that display advertising spending is expected to grow by 23% this year. The type of creative that’s set to grow the fastest is surprising too.
Say goodbye to banner blindness worries. Marketers are expected to spend more on banners and social media ads than video, rich media or sponsored ads. In 2016, video is only expected to reach $ 9.59 billion in spending while banner ads are expected to reach $ 14.74 billion in spending.
But, continue looking ahead beyond 2017 and video is expected to grow faster than banner ad spending. By 2019, banner ads and other types of display advertising will reach $ 17.68 billion while video is projected to reach $ 14.77 billion.
The Role of Programmatic Advertising
One of the biggest reasons for this type of growth is the movement from television advertising to online advertising. More traditional businesses are finding value in the digital marketing world. Display advertising tends to work the best online compared to television commercials offline.
Search engine marketing cannot compete with images, videos and rich media, making this channel slightly less attractive for many advertisers.
Perhaps one of the biggest reasons companies’ display advertising is on the rise is because programmatic advertising is increasing in popularity. Many advertisers never reach out to individual publishers to determine whether or not their website is the right one for them. Instead, programmatic buying systems do all the work, scattering ads on various websites where your target audience tends to lurk.
The question becomes, what’s right for your business?
Where Will You Put Your Advertising Spending?
While SEM still plays a role in driving traffic to your website, the increase in display advertising cannot be ignored. To get your business in front of a highly targeted audience and drive more traffic to your pages, programmatic advertising (and display advertising) might be your best option.
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