Google Sees Tripling of Real-Time Ad Transactions

New York, NY– Real-time transactions on Google’s DoubleClick Exchange have more than tripled over the past twelve months, according to Neal Mohan, Google’s VP of product management. Within five years, he predicted 50 percent of targeted ads will be bought using real-time bidding technologies, and that advances in measurement and analytics will help attribute the effect of such ads far more effectively.

Mohan delivered the remarks at the IAB Mixx conference today, where he took the stage alongside other Google execs to promote the online display ad medium and promised to help “bring sexy back” to the format. They also placed emphasis on the rise of social media and the company’s “mobile first” approach to advertising, suggesting innovations in those areas will help double the value of global display ad market by 2015, to reach a figure of $50 billion. (Other researchers are more modest; eMarketer estimates display ad spending will hit $14.7 billion by 2014.)

“The display ecosystem is on the verge of the most important stage in its history. [The next five years] will provide tremendous opportunities for advertisers, and everybody working in the display at space,” said Mohan.

Joined onstage by a range of Google executives, including Barry Salzman, managing director, media platforms, Mohan went on to provide a series of predictions for the evolution of the online display advertising space, including the continued rise of social media and video ad formats.

Salzman placed firm emphasis on the company’s “mobile first” mantra, predicting “the mobile screen will be the first screen on which consumers engage with brands by 2015. “Mobile has the potential to fundamentally change what advertising looks like,” he said.

Mohan went on to suggest that 75 percent of ads will also be “socially enabled” within five years, allowing users to share ads with friends, to comment on them, and to provide feedback. Further, he said those interactions could be used to inform the type of ads shown to users in future. “By 2015, people won’t be talking about social display advertising, it will just be advertising,” he said.

Real-time bidding was also highlighted as a key way to add to the value of display advertising for both advertisers and publishers, and Mohan revealed the volume of

Another area identified for rapid growth was the online video space. According to Salzman, over half of online ads will have an element of online video in them by 2015, purchased on a cost-per-view basis.

The increased prevalence of rich media rounded out the company’s predictions, which, according to Salzman, signified “the golden age” for the display format. “Online display advertising is the most fun you can have with your clothes on,” he concluded.

Google has steadily leveraged acquisitions to advance its display ad ambitions. Its purchases of the past three years have included a mobile ad network (AdMob), an ad management platform (DoubleClick), a demand side platform (Invite Media), and a retargeting/creative automation tool (Teracent).