Yesterday I covered the Rocket Fuel IPO filing. The digital marketing analysis firm plans to raise up to $100 million going public. Even more insightful are the many digital advertising trends detailed in Rocket Fuel's S-1 statement.

Ad networks are growing larger by the minute, they track and catalog nearly everything that is done on the Internet. This is the industry that created huge companies like Google (GOOG). But as the data collection gets more pervasive and easier to track, ad-targeting will get even more intelligent, and possibly more intrusive on the privacy front.

Think about it this way:

* Right now, the ad networks know a lot about what you are doing
* In the future, they will know almost everything about you, including predictive information about what you may do in the future.

This is Rocket Fuel's business, basically. Collect reams of data and then build artificial intelligence (AI) algorithms to predict what works best. This is the future. Rocket Fuel's S-1 filing contained a detailed analysis of the industry, so let's crib certain points:

There is so much information in the S-1, why not just cut and paste? Here are the valid points on the digital media industry, per Rocket Fuel:

1) Data will be used to create Artifical Intelligence (AI) technology. From the S-1:

AI-driven systems can rapidly process enormous amounts of data and execute transactions on a large scale, enabling decision-making capabilities that generally are not otherwise feasible or economical. One of the historical limitations of AI was its need for substantial and costly amounts of computational power. However, the cost of computational power is rapidly decreasing, making AI solutions more practical for mainstream business applications.

2) Big data and AI technology can be used to streamline business processes:

The continuing increase in global online activity generates massive amounts of data that can be collected and analyzed to provide valuable insights for business processes, especially given the dramatic drop in computation and storage costs. According to the IDC Digital Universe Study, the global volume of digital information created, replicated and consumed is expected to grow from 2.8 zettabytes in 2012 to 40 zettabytes in 2020, which implies a doubling of data every two years, with 68% of all digital data created and consumed by consumers in 2012.

3) As data proliferates, this trend will accelerate.

The continuing increase in global online activity generates massive amounts of data that can be collected and analyzed to provide valuable insights for business processes, especially given the dramatic drop in computation and storage costs. According to the IDC Digital Universe Study, the global volume of digital information created, replicated and consumed is expected to grow from 2.8 zettabytes in 2012 to 40 zettabytes in 2020, which implies a doubling of data every two years, with 68% of all digital data created and consumed by consumers in 2012.

4) The Internet is changing the way consumers consume, and sellers sell:

The Internet has become a primary channel for content creation, consumption, social engagement and commerce. Adults in the United States spend more time online and on mobile devices for non-voice activities than ever before. According to eMarketer, in 2012, they spent on average 255 minutes per day on such activities, up over 50% from 2009. Historically, advertisers have relied heavily on offline media, such as television, newspapers, magazines and radio, to promote their brands and to sell products and services.

5) Digital advertising is growing like mad:

With the rapid growth of online activity and the proliferation of Internet-connected devices, advertisers are increasingly using the Internet to reach, influence and creatively engage consumers. As a result, digital advertising spending as a percentage of overall advertising spending has increased substantially in recent years. According to eMarketer, worldwide digital advertising spending is expected to grow from $72 billion in 2010 to $163 billion in 2016, or from 17.5% to 25.9% of total worldwide advertising spending, respectively.

6) Digital advertising is moving rapidly to market systems and real-time bidding:

In recent years, this trend has resulted in the emergence and rapid growth of real-time advertising exchanges, which have reduced the transactional friction that historically was associated with the buying and selling of digital advertising inventory. Like stock exchanges for buyers and sellers of investment securities, real-time advertising exchanges enable increased liquidity, transparency and efficiency in transactions between advertisers and publishers.

Real-time bidding, or RTB, is the real-time purchase and sale of advertising inventory on an impression-by-impression basis on real-time advertising exchanges. According to IDC, RTB is expanding faster than any other segment of the digital advertising industry, with total RTB sales increasing from approximately $3 billion in 2012 to approximately $14 billion in 2016, representing a 47% CAGR.

7) There are several additional themes in real-time bidding for ads:

• Programmatic buying. Programmatic buying enables the automated buying of advertising inventory, typically using predefined and data-driven algorithms.

• Abundance of inventory. The digital content revolution has created huge amounts of inventory, which isn't always great for publishers, but it yields more and more data and opportunities for advertisers to sift through, analyze, and use the best solution.

• Publisher adoption. Publishers are having to adopt to these new fast-moving digital models. Therefore, they are increasingly relying on technology partners including real-time bidding systems and ad networks.

• Precision for advertisers. Programmatic buying and data analysis gives advertisers acces to large amounts of inventory and the ability to more accurately analyze and execute their market needs and campaign goals.

Rocket Fuel points out that all of these trends will yield massive growth in the industry. The numbers certainly appear to back that up. According to MAGNA GLOBAL, display, mobile, social and video channels for digital advertising are forecast to grow from $42 billion in 2012 to $73 billion in 2016 globally, a 15% CAGR [compound-annual growth rate], according to the Rocket Fuel statement.