Social Machinery

A recent statement Nikesh Arora, President of Global Sales Operations and Business Development of Google demonstrate the exponential growth of the online advertising market in the mid term and the maturity of channels like the internet which in turn has captured the trust of the brands and advertisers.

Nikesh expected that within 5 to 8 years, between 30 and 50 percent of advertising will be digital. This means that online advertising would grab up to half the overall share of the advertising market. 

It may seem a bold statement, nevertheless if you consider what is happening in countries like Sweden or UK where online advertising accounts for more 20% the advertising spending,  this projection sounds achievable

The latest forecasts about digital advertising have been quite optimistic about the growth over the next few years although there are those who raise concerns about the evolution of this market. The paradigm shift and current trends, together with the increase of electronic commerce, online shopping and the rapid adoption of mobile internet worldwide are the main supporting factors that could drive this fast growth. Additionally, the economic downturn has shifted companies’ advertising strategy towards a media mix where ROI is the most important factor. In the sense traditional advertising channels cannot provide a comparable measurement of their effectiveness. 

Probably what we’re going to see in the coming years is new wave of online advertising, where video is positioned as the advertising format with more projection and demand among users and consumers, and with new segments such as mobile marketing giving a unprecedented reach to brands and advertisers.