Display Ad Business Sees Big Q1 Spike

Anyone concerned about the future of the display ad business shouldn’t be.

According to the latest report from Kantar Media, display advertising enjoyed a hefty 14.6% growth spurt in just the first quarter of 2011. By way of comparison, display advertising saw a much more modest 5.1% increase in the first quarter of 2010.

Kantar Media’s report comes on the heels of last week’s eMarketer projection, which forecasts that display advertising is on its way to surpassing search advertising as early as 2015.

“The internet has become as fundamental as television to advertisers,” observes eMarketer principal analyst David Hallerman, who notes in the report that display’s rise in popularity can primarily be attributed to support from marketers who are increasingly funneling dollars toward banner and video ads.

Not surprisingly, the noted spike in display advertising comes in conjunction with a simultaneous rise in usage of digital advertising for branding purposes.

“As consumers continue to increase their time spent online and as the resurgent economy continues to bolster ad budgets, we’re going to continue to see an influx of dollars toward the internet,” Hallerman says. “More ad formats, such as video, and more channels, especially social media and mobile, are also key contributors to the spending gains.”