Forty Seven Billion Dollars will be spent on digital media in 2014. Will you be profiting from it? Exploring the trends, forecasts, and prediction of this enormous industry will help you stay ahead of your competitors and get your fair share of the digital advertising pie.

1. The Digital Advertising
EcoSystem of 2014
7 Trends, Forecasts, and Predictions
Media Intelligence

2. The 7 Pillars of 2014’s
Digital Advertising Ecosystem
1
A Growing Ecosystem
2
A Mobile Paradigm Shift
3
Multiple Devices Demand Responsive Ads
4
Focus on Data
5
Rising Stars: Display Ads
6
Growing Adoption of HTML5 over Flash
7
Programmatic Buying Jumps Ahead
The Digital Advertising EcoSystem of 2014
2

3. 1
A Growing Ecosystem: The Experts’ Stats
The digital advertising ecosystem,
overall, is growing at a healthy pace.
Ad companies agree that the continued momentum of
mobile and digital advertising remains the largest single
source of ad-spending growth.
The Internet . . . is expected to remain the fastest-growing
ad medium.
Online-ad spending is expected to expand 15% in 2014.
It predicted that spending on digital-media ads will
surpass the combined total of ad spending on
newspapers and magazines ads in 2015.
The Digital Advertising EcoSystem of 2014
3

4. 1
A Growing Ecosystem: The Experts’ Stats
eMarketer expects US advertisers to spend $177 billion
on paid media this year, up 3.9% over 2013 spending
levels. $47 billion will be spent on digital media.
The Digital Advertising EcoSystem of 2014
4

5. 1
A Growing Ecosystem: The Experts’ Stats
Publicis's ZenithOptimedia forecasts total worldwide ad
spending rising from 3.6% in 2013 to 5.3% next year, with
future gains shooting up to 5.8% through 2016.
The Digital Advertising EcoSystem of 2014
5

6. 1
A Growing Ecosystem: The Experts’ Stats
Interpublic's MagnaGlobal, which tracks
media-company ad revenues for its forecast,
expects a jump of 6.5% in ad revenues next year
The US retail industry’s
advertising spending on paid
digital media will hit $9.42 billion
in 2013 and rise to $13.50 billion
by 2017, for a 10.5% compound
annual growth rate (CAGR)
10.5%
$13.5 B
$9.42 B
2013
The Digital Advertising EcoSystem of 2014
2017
6

7. 2
A Mobile Paradigm Shift
Mobile ad spend was $1.6B in 2011,
$4.4B in 2012, and $9.6B in 2013.
Historically, mobile has been
viewed as a channel.
Its growth depends on viewing it
as a medium, not a channel
Companies with robust platforms
and teams for handling desktop
display will be best suited to
incorporate mobile and provide a
holistic solutions for advertisers.
The Digital Advertising EcoSystem of 2014
7

8. 3
Multiple Devices Demand
Responsive Advertising
Consumption of digital content across multiple devices is trending.
GigaOm predicts that there will be
24 billion devices by 2020
Responsive ads are required that change in layout, size,
or orientation depending on the size of the screen they
are being viewed on.
The move to responsive creative is going to
cause disruptions in the established order
of things, for both buyers and sellers alike
The Digital Advertising EcoSystem of 2014
8

9. 4
Focus on data
Big data is fueling decisions in real-time
“Trying to run your business on data that’s in
the past is like trying to drive by looking in
your rear-view mirror,” said Jon Stine, director,
retail and consumer products practice, at the
Cisco Internet Business Solutions Group.
Successful advertising campaigns will require access to
information about audience and competitors.
The Digital Advertising EcoSystem of 2014
9

10. 5
Rising Stars Display Ads
“Users are 2.5 times more likely to interact with a
Rising Stars ad unit than a standard ad unit”. They are
also 2 times more likely to react quicker to a Rising
Stars ad than to a standard one.
Publishers expect a 79% increase in the demand for the
Rising Stars.
Rising Stars ads inspired 23% higher message recall, at
81% for users who interacted with them, versus 66% for
those who viewed a standard banner ad”.
The bigger canvases and interactive functionality of the
Rising Stars make them a strong opportunity as both
ad products for publishers/networks, and storytelling
vehicles for advertisers.
The Digital Advertising EcoSystem of 2014
10

11. 6
Growing adoption of HTML5
over Flash banners
75% of web developers are currently using HTML5
Preferred over flash because:
Better performance
Expanded functionality
Search engine optimization
Cross browser support
A strong likelihood that portable
devices can display the content.
The Digital Advertising EcoSystem of 2014
11

12. 7
Programmatic Buying Jumps Ahead
Programmatic ad sales will hit $12 billion
worldwide by the close of 2013, worldwide
programmatic expenditures to jump to
$32 billion by 2017.
"The US will remain the most developed
programmatic market globally, with 80% of
display-related spend being transacted in
a programmatic fashion (either RTB or
non-RTB) by 2017," Magna says.
The Digital Advertising EcoSystem of 2014
12

13. 7
Programmatic Buying Jumps Ahead
Programmatic ad buying is maturing as more
publishers look for ways to leverage the buying
networks to sell premium advertising.
They are building packages and partnerships,
and not just clearing out excess inventory at
discounted rates via automation.
“In 2014, programmatic buying of digital
advertising inventory will expand beyond
standard IAB ad units into premium
placements and nontraditional display units,
such as in-image, native, and content
marketing,” said Ken Weiner, CTO of display
advertising platform GumGum
The Digital Advertising EcoSystem of 2014
13