A new report from IBM Global Business Services forecasts "greater disruption for the advertising industry in the next five years than occurred in the previous 50." The report found that control of attention, creativity, measurement, and advertising inventories are tipping the advertising industry balance of power.
To examine the factors influencing advertising and explore future scenarios, IBM surveyed more than 2,400 consumers and 80 advertising executives globally. The IBM report shows increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked.
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. All players must adapt to a world where advertising inventory is increasingly bought and sold in open exchanges vs. traditional channels.
The complete report can be found at: http://www.ibm.com/media/endofadvertising
Discussion
By Brian Regan on Nov 13, 2007
This makes sense to me and I certainly see it happening from my personal standpoint. If I look at my own personal habits I can see how things have changed for me.
1. I read magazines and want to contue to receive them
2.I like and my wife loves mailed catalogues.
3. I do not watch much TV (Except my beloved Patriots), I prefer interactive media, not me watching something, but me interacting with my entertainment.
4. I read my daily News on the Internet, CNN, Cnn/Money, Boston Globe tec. Either with my iPhone on the train into work or througout the day.
5. I used to play video games from time to time, but now I use Second Life as social entertainment and have developed business within it. Its a new type of entertainment for me, blends business, self education and entertainment in one.
6. I use Myspace to stay in touch with many of my friends that live in California and other distant places from my home in Boston. Its simple, I can update them all at onece and we can share pictures and videos.
7. I rarely look at ads and prefer to Google things I find interesting and read about services and products that support the thing I am interested in.
8. I love Wikipedia
A snap shot.
By Henry Freedman on Nov 14, 2007
Didn't IBM turn down Chester Carlson's invention of Xerography
as not having an economic future ? Now they are predicting an
end to what they cannot see.
By Michael Jahn on Nov 16, 2007
It matters little if IBM recognizes this change in the advertising ecosystem or not - it is simply a fact that traditional print ads have no method to track response and web based PURLs do - so, if you are spending cash on a campaign, you can get feedback on response rate and adjust your messaging. Besides this incentive, we find that over 2% of people respond to personalized mailings - so from a 'return on investment' - cross media approaches do better than tradition print ads.
By Ralph Del Rio on Nov 19, 2007
An interesting article from a globalizing company that is moving further and further away from the consumer products industry. This company is as famous for its innovations as its miscalculations and its miscalculations often result in a major boom for other industry players and brand new directions to explore.