Tuesday, 13 November 2007

The End Of Advertising As We Know It

A voluminous report from IBM gloomily predicts the end of the current advertising model. The core drivers of this according to IBM are:
  • Attention is increasingly controlled by consumers as media consumption moves away from the TV and due to ad skipping/blocking technologies
  • The rise of user generated content is enabling engagement marketing
  • New channels and technologies are enabling measurement of advertising effectiveness for the first time
  • The rise of exchanges is changing the way advertising is bought and sold
There is no doubt that allocation of ad spend against the evolved media consumption needs to change (and quickly). We spend 37% of our time as consumers watching TV - a whopping 32% of ad spend is allocated to that medium. On the other hand, we spend 29% of our time on the Internet, where the ad spend is around 8%... So much for engagement marketing, at least so far...

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