The End of Advertising as We Know It: IBM Survey, PART 2: Critical Comments by MediaPost

November 14th, 2007 Nurlan Urazbaev

While she completely agrees in general with the statement that advertising will undergo “tectonic” changes in the next few years, Diane Mermigas of MediaPost is concerned that the IBM survey and other research has not yet offered any recipes as to how exactly marketers should be handling the changes:

“… we need templates for change.

And that’s where the best intended research and surveys fall short. Media players and advertisers are desperate for concrete ideas, business models, creative formats. They need a road map on how to alter their existing infrastructures, operations and processes to accommodate the new digital ways. They need particulars to help them construct personalized solutions. Too many pricey consultants are still dealing in generalities, not specifics.

The IBM report offers a fine summary and point of discussion of what we know. But it’s also a stark reminder of what we don’t know–and what we need to do in order to become participants in digital change rather than mere observers,” writes Mermigas.

I always try to see how the media trends analysis affects and reflects trends in digital signage. In this respect I found the following paragraph from the article relevant:

“With Google’s ad auction-based ad sales and placement already a model, the report predicts advertising inventory will increasingly be bought and sold through more efficient open exchanges. More marketing will be matched specifically with consumers who are more receptive to and in need of the pitched products and services to maximize ROI. Precise measurement of consumer response to specific ads and companies will determine effective pricing as users monitor and respond to the full spectrum of technologies. Those three scenarios are givens.” - This trend is mirrored in digital signage, where targetting by consumer profile and geographic market, coupled with “cost per transaction” and “cost per action” measurements will be prevalent methods of media placement within the next 3 years.

Related topics: Is Digital Signage for Branding or for Sales Lift? ; New Metrics for New Media? A Multi-Billion Dollar Question ; Digital Media M&As a “High Growth Category,” Despite the Credit Crunch and Fears of Recession: WSJ 

Entry Filed under: The Big Picture, Digital Signage Evolution, Uncategorized