William Gu: 2013, the Turning Point in Display Advertising

Based on the innovative technology, the RBT ad model is turning the traditional Internet ad such as purchasing advertising space and time into purchasing people. With the development of the new business model, the ad chain is undergoing a fundamental change. What is the outlet of display advertising in 2013?

On Dec 27th, William Gu, the head of research and vice president of hdtMEDIA, shared his viewpoint that 2013 would be the turning point in display advertising when attending the special activities for hdtMEDIA in Friends of Meihua Caf¨¦.

William introduced that as the first display advertising showed up in 1994, the global Internet ad had experienced the web marketing (1994), ad network (2004), ad exchange platform based on RTB (2005), and the demand side platform (2009). Now it was the booming time for ad exchange platform and the demand side platform. The research data from the third party showed that the amount of advertisers who used RTB for advertising was more than 80% in April, 2012. The total expenditure of American display advertising had reached 19,475 billion dollars in 2012, approximately 13% of the total expenditure of Ad network, 98% higher than 2011. It was expected that the ad expenditure will reach 70,599 billion dollars in 2016; the proportion will reach 28%.

The development of RTB in China was swift and violent. eMarkter said that the amplification of RTB display advertising expenditure in 2013 would reach 299.9%. It meant that China would hold the biggest amplification in the world. The second was Central and Eastern Europe, the amplification was 287%, the amplification of South America was 275.4%.

Although it was a rainy day, the speech of William still attracted large amounts of people to join. Audiences showed strong interest in the analysis about the ad chain of the American display advertising. When talking about the factors about the explosion of display advertising, William said that automated purchase was the key factor. Explosion came from the demand of clients. Clients needed high efficiency and better effect, but automated purchase could meet their demand.

Another audience asked that whether the ad exchange platform would displace the ad network. The viewpoint of William was that the new technology was always the challenge and the patch of the former one. Although there was less technical content in ad network, it still had its value. In fact, when the ad exchange platform came out, the number of the American Advertising Federation was increasing, but market share was decreasing. The ad exchange platform was the trend of development in the future; it would not take place of ad network in a short time. 

[Event Photos]

William Gu¡¯s speech brought high popularity in Friends of Meihua Caf¨¦
William Gu answered the questions from the audiences


¡®Teacher Gu¡¯ attracted many audiences after his speech