Advertising sector: Future of Advertising and impact of technology – Part 3

Future is uncertain, unseen and for industry like advertising and marketing fairly challenging. Advertising is going through interesting times, social media hype has been blown out of proportion, and some have started to celebrate the death of TV and 30 second commercials. As per my understanding of communication industry, following is my perspective about advertising’s future

  • New age advertising will be very much like old-age advertising – The soul of advertising and communication has always, been and will always be in IDEA. The means of communication will keep on changing. It is the power of a relevant idea that drives marketing and communication. and more empowered generation of consumers will demand more relevance (in terms of everything from product to communication).
  • To increase revenue (product usage) there are only two ways either we should increase the uses or the users. Advertising industry will expand also like this either we will tap into the untapped i.e. new markets and/or new media.

Following is my understanding about the future of communication industry, hope you will find it useful

Link to previous mails about Future of advertising part two & part one

Additional readings:

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10 responses to “Advertising sector: Future of Advertising and impact of technology – Part 3

  1. i love this……..im also wondering why i was never able to articulate my thoughts and ideas like you did….

    im loving what ur doing with ur blog 🙂

    keep rocking.

  2. Honestly… I can’t agree to your conclusion.

    The new age of advertising will be nothing like the push-model of Traditional advertising where assumptions are:

    1. The consumer is a sheep.
    2. The consumer does not have complete information about the product.
    3. Consumer opinion can be shaped through advertising.

    In the new media world, review sites and bloggers are more powerful than those 30 second ads (aka Social media) and with the fragmentation of media that is ever present and growing, it’s no longer enough to be on broadcast.

    The new wave of marketing will be about reaching those perfect 100, who’ll reach another 100, who’ll reach another hundred and so forth. It will be driven by the user, not the marketer or the agency, which is nothing like the current model.

    • Thanks Umair, for your detailed input. I agree that advertising will not follow the assumptions you mentioned however I dont think that is the assumption advertisers are following. For reference I am pasting JWT’s vision reported on CNN: Today, JWT operates based on the concept of “time” as “the new currency.” Its role is “to ensure that more people spend more time with our clients’ brands;” its purpose is “to create ideas that people want to spend some more time with;” its belief is “the better the idea, the more time people will spend with Agencies are supposed to listen to consumers and develop a brand offering in the light of consumer’s want. and later on should find a media that compliments the brand vision. If agencies are not doing so they are not doing the right job.

      I agree it is no longer enough to be on broadcast alone but it was never the case right from the start. You do include direct mailers, PR activities, feedback channels, ATL media and BTL activities when crafting a 360 degree media campaign.

      I want to neutralize the hype around social media, Social media will grow but does it mean TV will die? No..!! Because the offering that TV has Internet still doesnt have i.e. cost effective entertainment for all. Exactly the way TV couldnt kill radio, radio couldnt kill newspaper and so on. Ad-spend on internet will increase, new options will emerge, collaborations between technologies like mobile and internet, mobile and TV will increase but that the natural evolution of the technology.

      Media strategy will always be about the optimum usage of touch points and there are only three types of touch points 1. static, 2. human 3. interactive. (and social media is a subset of interactive media)

      But i agree with you 100% on the fact that consumer will have a stronger say then before in advertising agency model. I suggest you refer to the comments of Karim & Ivan as well.

      Thanks again for thoughtful feedback

  3. I can also cite you Ogilvy’s Lazarus’s report when she said ‘Ideas are the new currency and how we’ll always matter’. Unfortunately, It’s hardly matters what traditional agencies are saying. They don’t get digital because the main focus is media buying (the bread and butter) and the entire business model collapses when media spending starts going down. None of them is really making big money off their digital agencies or their BTL agencies for that matter.

    What you’ve quoted is the new ‘engagement’ buzzword that’s going round and engagement basically is what we call activations. Budgets have been shifting into direct for years now and the trend will only escalate as fragmentation increases.

    For your TV couldn’t kill…. this time the internet has been killing newspapers since 1990 and if you were to read the financial reports of all media giants, they’re citing digital as their biggest threat. I can safely say that in the future, all pipes to content (TV, Radio, Music, Film, etc) will be internet based.

    For your reference, I will recommend you read PHDs report on ‘Agency Of the Future’. It’s also on my blog at http://umairmohsin.wordpress.com and very inciteful. There’s also a report there on the future of media and entertainment, which really helped me a lot in devising my strategies. I’m also going to put up my views on the future of TV soon, so will ask you to comment on that when I do so.

    I will also recommend you read up on Social TV The web 4.0 version of TV, which as you’ve used the term ‘Natural Evolution’ is where it’s going.

    Anyways, keep up the good work.

  4. One more thing, do read up on ‘Who Do You Trust’ report by Neilsen. 79% of the people do not trust advertising anymore, so… it hardly matters whether you’re on broadcast or on print, or even digital.

    • Thanks again for your comments. I would like to restate what I said earlier

      1. Advertising will always be about the big idea
      2. It will focus more and more into the untapped – new media and new markets

      I appreciate your detailed review about digital revolution but for me digital is just another media to engage with your consumer. And like anyother media it requires ideas to connect with audience.

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  6. Given I work in the transmedia realm (do read up Tuesday Digital’s Philosophy at http://www.tuesday.com.pk), I would like to agree with your statement. However this is only valid for the now.

    If trends like crowd-sourcing gets any more trendier, the idea as driver across media argument will also collapse.

    Secondly, the idea as drive refers to the push model of traditional advertising where the marketer is in control and the agency executes his wishes.

    The new advertising world will be totally different where the user is in control and thus there will be no big ideas, just management of a lot of ideas serving a lot of different niches.

    I’m not sure how many users will tolerate ‘interruptions’ in their schedules in the future.

    My two cents. 🙂

  7. Anyone who wants to know what the future is like, take a look at my presentation.

    Traditional methods as outlined above are dead.

    • Hi Graham, Thanks for sharing the link. I personally like your presentations. As far as death of traditional method is concerned, I have a disagreement here. The medium might have changed over time but it will always fall in one of the three catagories identified above. However, I understand where you are coming from but we have a different perspective on the subject

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