Banner ads, nearly given up for dead, are showing new life thanks to developments in the display ad business that could close the gap between ad spending on search and display ads.

Despite the plethora of banner inventory, marketers have been earmarking more of their Web budgets to search since it has better return on investment. Research firm eMarketer estimates that U.S. advertisers spent $11 billion on search ads in 2009, compared with less than $5 billion on display ads.

But the rise of automated, real-time exchanges — which collect data used to fine-tune ads based on targeted audiences — are showing returns that rival search, according to some marketers.

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