IBM has released a report entitled “The End of Advertising as We Know It”. The report predicts a shift from mass media to interactive niche advertising targeted at specific groups.
Traditional advertising players risk major revenue declines as budgets shift rapidly to new, interactive formats, which are expected to grow at nearly five times that of traditional advertising. To survive in this new reality, broadcasters must change their mass audience mind-set to cater to niche consumer segments, and distributors need to deliver targeted, interactive advertising for a range of multimedia devices.
If true, and I suspect it is, there are obvious implications for newspapers, radio and television. I think TV is the biggest loser. People are already switching to pay services and the internet for much of the information and entertainment they previously gained from free-to-air channels.
Newspapers are adapting to the new age through their internet services. I guess television could do the same, and NBC for example, is now offering video downloads, but I wonder at their ability to manage the transition.
IBM surveyed more than 2400 consumers and 80 advertising executives globally. “The report shows increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked.”
Product Placement will be the only traditional marketing tool that will keep pace with the growth of new media, enjoying a CAGR of 20 percent, says the report.Â
Most forms of future advertising will be typically found in content. Self service niche ad marketplaces like our own will enable advertisers and content producers to DIY.