What is Behind the Shift for Advertisers?

by Jay Deragon on 01/17/2008

What is Behind the  Shift for Advertisers?Advertisers fueled the “hits economy” since the web was introduced. The old web was all about hits gained from traffic generated by the attractiveness of content. Content was the deliverable of Web 1.0 and the masses were drawn in by the utility and content affinity.

The web grew as the marketplace of information exploded. Advertising fueled the attractiveness.

With the introduction and growth of Web 2.0 the dynamics are changing for advertisers. Now it has become more about relationships rather than just information. The influence has shifted away from connections away from just information to connections with people, the ultimate influencers.

Accenture has issued Part 4 of its Digital Advertising Study. This part of the study focuses on how digital advertising will change the advertising value chain.

Accenture’s study shows that 49 percent of those surveyed believed that digital medial will become the primary form of programming and advertising content within five years. Accenture believes that new digital media are set to undermine the current TV based structure in the next few years by turning advertising into a two-way interactive experience for each consumer, and by ruthlessly highlighting the real performance and returns generated by campaigns

The study also shows that 75 percent of the respondents believe that the advertising agencies and the broadcasters have the most to lose in this transition. Accenture believes that those most at risk are the companies that do not embrace the new technologies and business models.

In Part 3 of its series on The Future of Digital Advertising. It examines the degree that the advertising industry is prepared for the technological changes that are coming with the new digital techniques. The report finds that:

  • The migration to digital technology will challenge the advertising industry in virtually all aspects of what it does — its business models, its culture, its customer relationships, and even how it is compensated.
  • The advertising industry is not well prepared for the new technology.
  • Advertising will move to three screen strategies that will encompass the TV, the PC, and the mobile handset.
  • The new technology entrants such as the online search companies may have the most to gain from digital advertising.
  • 79 percent say that advertising will become more performance based.
  • 87 percent say that analytics will become more accurate and more critical to the business.
  • 97 percent say that advertising relationships with customers will become more interactive.
  • 52 percent of DVR users skip all ads and 36 percent skip most ads.

The power of influence is shifting to people’s opinions, affinity and interactivity. The power shifts a fueled by the conversations of the social web, one to one to millions. These conversations are shaping opinions about everything, anything and people opinions voiced through conversations are the new influencers of the marketplace.

Those that supply the fuel for the advertising industry are businesses selling everything to anyone and everyone anywhere. The traditional methods of reach have changed. The traditional methods of creating affinity are changing. The game of spin is becoming unspun and replaced with honest, frank and sometimes disruptive conversations. Disruptive in the sense that if a product or service doesn’t deliver on its promise, the suppliers, businesses, will and can quickly loose brand credibility with its audience of buyers, the people.

Behind the shift in advertising models and methods are waves of changes coming at business leaders, managers and entire markets. Those prepared to lead the necessary transformations will win, those not prepared with loose. Advertising is a process for brand identity, product and service affinity, reach and relations with target audiences, people and other businesses. If the relationships are changing then so must everything else.

What say you?

{ 1 comment }

Michael Pokocky January 18, 2008 at 3:27 pm

With all due respect its Economics 101: Supply and Demand and the Elasticity of Price.

Its all about following the money trail. In this case its not for prosecution but rather profit earned in a legal and ethical manner.

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