The end of advertising as we know it

The recently released “The end of advertising as we know it” executive brief written by IBM’s Global Business Services addresses the current paradigm shift that is taking place within the advertising industry. With television audience erosion, fragmentation and measurement shortcomings the advertising executives in the study recognize that consumers are in control of how they interact with, filter and block marketing messages. They also state that advertising will increasingly be purchased through open, Web-based platforms that deliver real time metrics.

The brief shows that,
1) personal PC time now rivals linear TV viewing time and consumers are exercising control over how they view advertising in this multi-channel world;
2) lower cost advertising content (ads) is arguably as appealing to consumers as versions created by agencies and this trend will continue;
3) advertisers are demanding more individual-specific and involvement-based measurements that will put additional pressure on the traditional mass-market model;
4) advertising inventory will increasingly be bought and sold through efficient open exchanges and within the next five years, 30 percent of all advertising expenditures will be purchased through exchanges.
With audience erosion continuing in television’s primetime and early morning/6pm/11pm newscasts, advertisers are following their audiences online. In 2008, the online exchanges that can aggregate sizable audiences and target them based on content vertical and/or subchannels within individual video sites will meet the advertiser’s need for reaching their desired audiences.

The entire brief can be accessed here.

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Explore posts in the same categories: Industry Articles, Paul Bowlin

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