The much-reviled banner ad appears to have some life left.
Display advertising — a category that includes banners — grew 26.3% globally in the first quarter, according to Nielsen. The increase was led by Asia-Pacific and Latin America, where display advertising grew 33.2% and 48.2%, respectively. Even in Europe, a comparatively mature market, display grew 10.4%.
One caveat: Nielsen doesn’t yet measure search and mobile. The company is still working on ways to accurately track both of those categories. Still, the figures for display are in line with other researchers’ reports. The IAB, which looks at advertising trends in the United States, estimated that display advertising grew 9% in 2012. The IAB defines display as encompassing banners, rich media, digital and sponsorships. eMarketer has also predicted that display revenues will eclipse search advertising revenues in the U.S. in 2015.
The bullish market for display comes despite the fact that banner ads have notoriously low click-through rates. However, executives at Facebook, among others, have argued that CTRs are an outdated, ineffective measure of an ad’s success.
Internet advertising may be getting a bigger slice of the overall pie, but according to Nielsen, it’s still a pretty paltry slice — just 4.4%, though that figure would likely more than double if Nielsen had included search.
The lion’s share of media spending still goes to TV (59%) and print (about 30%). TV spending rose 3.5% in the period, leading Nielsen to conclude that “television remained the dominant media type in terms of advertising investments … and it appears that TV will maintain this position at least for the short term.”