IBM Study: The end of advertising as we know it
IBM released a really interesting study about the trends in the advertising and marketing fields and how the internet is going to change them. On a gut level we at Dreamgrow have predicted this change for some years now but it is nice to have such information supporting our views. This ties in nicely with the earlyer post Internet overtakes TV as the biggest advertising sector in the UK. From the study:
The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked. Our research points to four evolving future scenarios – and the catalysts that will be driving them. Traditional advertising players – broadcasters, distributors and advertising agencies – may get squeezed unless they can successfully implement consumer, business model and business design innovation.
Based on an IBM global survey of more than 2,400 consumers and feedback from 80 advertising executives worldwide collected in conjunction with Bonn University’s Center for Evaluation and Methods, we see four change drivers shifting control within the industry:
Attention – Consumers are increasingly exercising control of how they view, interact with and filter advertising in a multichannel world, as they 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 peerdelivered 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 versions created by agencies. Our survey suggests this trend will continue.
“Consumer-created advertising will have all the appeal of anything crafted by the agencies, and will be ‘coopted’ by the brands themselves.” – CEO, advertiser, Asia Pacific
Measurement – Advertisers are demanding more individual-specific and involvementbased measurements, putting pressure on the traditional mass-market model. Two-thirds of the advertising executives IBM polled expect 20 percent of advertising revenue to shift from impression-based to impact-based formats within three years.
Advertising inventories – New entrants are making ad space that once was proprietary available through open, efficient exchanges. As a result, more than half of the ad executives interviewed expect that open platforms will, within the next five years, take 30 percent of the revenue currently flowing to proprietary incumbents such as broadcasters.
New platform players are offering advertisers the ability to purchase ads via aggregated networks. These capabilities provide key benefits such as: improved inventory management, improved pricing transparency, streamlined buying/selling processes, and improved analysis and reporting capabilities.
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