The trends toward creative populism, personalised measurements, interactivity, open inventory platforms, together with greater consumer control, is going to generate more change in the advertising industry over the next 5 years than it has experienced in the last 50.
Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked, so the traditional advertising players; agencies, broadcasters, and distributors will be affected unless they can successfully implement consumer, business model, and business design innovation.
There is no primary role for linear TV any more, and we are seeing the ‘neutral’ evaluation of all media formats meaning that many of the skills and capabilities that were the foundation of success in the past will need refinement, transformation, or even outright replacement.
The latest research from IBM Global Business Services points to four change drivers which are shifting control within the industry:
Attention
Consumers are increasingly exercising control of how they view, interact with, and filter advertising in a multichannel world. TV time is now rivaled by PC time as consumers continue to shift their attention away from linear TV and adopt ad-skipping, ad-sharing, and ad-rating tools.
Creativity
Thanks to technology, the rising popularity of user-generated and peer-delivered content, and new ad revenue-sharing models, amateurs and semi-professionals are now creating lower-cost advertising content that is arguably as appealing to consumers as the versions created by agencies. The survey suggests this trend will continue with user-generated content sites becoming the top destination for viewing online video content, and established players, like magazine publishers and broadcasters partnering with advertisers to develop strategic marketing campaigns – taking on traditional agency functions and broadening creative roles.
Measurement
It is expected that 20% of advertising revenue will shift from impression-based to impact-based formats within three years as advertisers demand more individual-specific and involvement based measurements, putting pressure on the traditional mass-market model.
Advertising inventories
New entrants are making ad space that once was proprietary, available through open, efficient exchanges. As a result open platforms will start to take more of the revenue currently flowing to proprietary incumbents such as broadcasters.
Showing posts with label Change. Show all posts
Showing posts with label Change. Show all posts
Friday
It’s a changing world
It’s a changing world.
Today’s consumers are being bombarded with messages from an ever-growing number of brands, via an ever-growing number of channels, but understanding and using these channels is more challenging, and more interesting than ever.
So what does this mean? Well, we need to embrace this new model of communication and interaction. We are going through a period of rapid transformation and it is difficult to predict what will happen in the future. But if you look around, change is everywhere not just in the way we communicate.
Consumers no longer view brands through the prism of traditional channels. Instead they use a complement of channels that help to inform their choices. Digital has radically shifted and shaped the way we interact and communicate with one another.
The emergence of digital technologies has changed who is in control of information, experience, and resources. There is a blurring of the distinction between the creative (content) and the media (the delivery of this content). The new consumer is empowered and in control. They have turned from a user into a creator and distributor of content, in partnership with the media they consume.
Digital is about creating experiences which are focused and entertaining, all stemming from a unique balance of creativity, technology, and human interaction.
As more people choose to communicate with each other digitally, we are finding that the demand for these services continues to grow and evolve – changing the way that brands communicate with their customers, changing the way that consumers, in turn, respond, and changing the way that customers talk to each other about brands.
It really is a changing world.
Today’s consumers are being bombarded with messages from an ever-growing number of brands, via an ever-growing number of channels, but understanding and using these channels is more challenging, and more interesting than ever.
So what does this mean? Well, we need to embrace this new model of communication and interaction. We are going through a period of rapid transformation and it is difficult to predict what will happen in the future. But if you look around, change is everywhere not just in the way we communicate.
Consumers no longer view brands through the prism of traditional channels. Instead they use a complement of channels that help to inform their choices. Digital has radically shifted and shaped the way we interact and communicate with one another.
The emergence of digital technologies has changed who is in control of information, experience, and resources. There is a blurring of the distinction between the creative (content) and the media (the delivery of this content). The new consumer is empowered and in control. They have turned from a user into a creator and distributor of content, in partnership with the media they consume.
Digital is about creating experiences which are focused and entertaining, all stemming from a unique balance of creativity, technology, and human interaction.
As more people choose to communicate with each other digitally, we are finding that the demand for these services continues to grow and evolve – changing the way that brands communicate with their customers, changing the way that consumers, in turn, respond, and changing the way that customers talk to each other about brands.
It really is a changing world.
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