The end of advertising as we know it, or is it the end of everything?
IBM made a powerful statement this month that TechCrunch picked-up on where they predict an end to advertising as we know it within 5 years:
Traditional advertising players risk major revenue declines as budgets shift rapidly to new, interactive formats, which are expected to grow at nearly five times that of traditional advertising. To survive in this new reality, broadcasters must change their mass audience mind-set to cater to niche consumer segments, and distributors need to deliver targeted, interactive advertising for a range of multimedia devices. Advertising agencies must experiment creatively, become brokers of consumer insights, and guide allocation of advertising dollars amid exploding choices.
Consumers have tired of interruption advertising, and are increasingly in control of how they interact, filter, distribute, and consume their content, and associated advertising messages. Amateurs and semi-professionals are increasingly creating low cost advertising content that threatens to bypass creative agencies, while publishers and broadcasters are broadening their own creative roles. Advertisers are demanding accountability and more specific individual consumer measurements across advertising platforms.
The full PDF Report can be downloaded here!
In related news, Read / Write Web reports on a 25% increase in online advertising for this quarter alone, which certainly helps to sustain the IBM belief that traditional advertising will come to an end quite soon, or at least, it will certainly no longer be controlled by the moguls who now run it:
PricewaterhouseCoopers and the Interactive Advertising Bureau released their 3rd quarter numbers estimating total ad buys online today. Big growth continues, but take it with a giant grain of salt. Last quarter the number exceeded $5.2 billion according to the study, up 25% over Q3 last year. According to the IAB, the glory days are here. “Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy,” says Randall Rothenberg, President and CEO of the IAB.
Following suite with the online efficiency of control, and a shift in marketing paraidgms, WebWare reports on a similar occurance taking place within the music industry:
Two analysts downgraded Warner Music Group last week, leading to a sharp drop in the company’s stock price. One of the analysts, Richard Greenfield of Pali Research, penned a gloomy report about why he thinks the sector is headed for even greater losses.
“No matter how many people the RIAA sues, no matter how many times music executives point to the growth of digital music, we believe an increasing majority of worldwide consumers simply view recorded music as free,” Greenfield wrote.
Proof of this was provided last month by Radiohead fans. The British super-group offered the digital version of In Rainbows, the band’s latest album, for whatever fans wanted to pay. According to research firm ComScore, which conducted a study of the groundbreaking promotion, 62 percent of those who downloaded the album paid nothing.
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ni-limits.com/blog/index.php/the-future-of-widgets-and-their-role-within-advertising
December 9th, 2007 at 12:12 am
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