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October 2007
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December 2007

The End of Advertising (as we know it)

“The next 5 years will hold more change for the advertising industry than the previous 50 did.”  So begins a recently released report from IBM Global Business Services. Many of us have been talking about the cultural shift and its impact on marketing for years, and it’s nice to see “Big Blue” weigh in.

Some highlights of the report projecting growth rates for 2007-2010:
•    US local stations can expect annual advertising revenue growth rates of 2% per year
•    Internet advertising is expected to grow at 20% annually during that same time. (Internet advertising growth has consistently outperformed previous projections)
•    Newspapers 2%
•    Mobile advertising 41%

Some other observations from the report which underscore the cultural shift in media:
•    Within five years, advertising executives expect 15 percent of television viewing time and 25 percent of PC time to be devoted to user-generated content (UGC)
•    Two-thirds of the industry execs expect 20 percent of advertising revenue to shift from impression-based formats to impact-based formats within three years.
•    The US television advertising upfronts are not likely to exist more than another few years.
•    The two variables likely to be most disruptive to the industry’s future are the increasing degree of consumer control over marketing and the shift toward open exchange platforms for advertising sales.
•    Agencies are developing new approaches to put consumers at the center of marketing programs. (Imagine that!)

There’s a lot more in the report which will prove either disturbing or exciting (my view) depending on your perspective.

Download report here.

Also check out the Internet vs. TV street interview.