“The death of display advertising has been greatly exaggerated,” Randall Rothenberg, CEO of the Interactive Advertising Bureau, said last week at the trade organization’s MIXX conference.
True, rectangular “banner” ads, in-stream video commercials and other so-called online “display” advertising accounted for more than a third of the nearly $23 billion spent on Internet advertising last year, according to David Silverman in a PricewaterhouseCoopers report prepared with the IAB.
But there was another 800-lb gorilla in the room at MIXX. Social media such as Twitter and Facebook are rapidly becoming venues where marketers connect with customers and spend dollars that previously may have gone to more traditional Internet ads.
Dick Costolo, who was just named Twitter CEO, talked about the power of the platform and its new advertising efforts, such as Promoted Tweets and Promoted Trends. Investor Yossi Vardi, who helped launch the ICQ chat standard, likened the future of social media to “the future of civilization,” quoting Amazon.com founder Jeff Bezos as saying the likelihood you’ll buy a car is 500 percent higher if a friend recommends it. Read more