Video and rich media formats will continue to be a driving force for digital advertising, according to research examining the ebbs and flows of display advertising over the next five years.
Forrester Research's Western European Online Display Advertising Forecast projects that the online display advertising spend will rise at a CAGR of 10.3% between 2014 and 2019, jumping from €7.3 billion to €11.9billion.
Two factors have been cited to account for the double-digit growth rate: mobile and video. Mobile display will pick up quickly over the next five years, with tablet taking off full speed in virtually every European market. With their larger screen real estate and growing role in customers' path to purchase, tablet-based ads will grow at a 40.5% CAGR over the period, attracting a third of total online display revenue by 2019.
Video and rich media formats meanwhile are also going strong, the firm said. Video in particular will increase 20% annually over the next five years. Attracted by the higher opportunities for story-telling and building engagement, marketers will be willing to invest higher CPMs in these formats.
