Mobile, Video, And Real-Time Bidding Are Driving A Boom In Digital Advertising

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The digital advertising market is evolving extraordinarily quickly.

Traditional online banner ads designed for PCs - and the legacy ad networks that support them - are being displaced by a new generation of formats and technologies.

All the significant growth is in these new areas: programmatic (automated ad trading platforms), video, and mobile advertising.

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At BI Intelligence, Business Insider's paid research service, we've been tracking the trends that will drive a reallocation of marketing budgets away from traditional media, and into digital. For more in-depth analysis and downloads of our charts and data on the digital media industry, including our annual Future Of Digital deck, subscribe today.

Consider:

1. Mobile will drive digital growth going forward. Mobile will be largely responsible for pushing digital past TV in terms of its share of U.S. ad spending by 2017.

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2. Mobile is the fastest-growing ad medium, and will see 43% annual growth between 2013 and 2018. Display ads, search ads, and video ads appearing on mobile screens are grabbing an ever larger share of U.S.-based advertising budgets. In the chart below, mobile includes all ad formats - including video, search, and display - on mobile, as well as SMS ads.

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3. Companies that specialize in programmatic ad buying technology are driving impressive growth, and there is some industry consolidation (Example: AOL's ownership of Ad.com and Adap.tv). Real-time bidding, or auction-style buying of impressions in the milliseconds before pages load, is the dominant form of programmatic.

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4. Video advertising is also growing quickly.

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