IBM study: The end of advertising is near – as we know it…

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eu-social-mediaSometimes studies come back too late. When I was the host of the dmexco social media panel ‚Show me the money – effective ways to advertise‘, I would have loved to talk about these study results.

IBM did a global study where more than 2.400 consumers and 80 advertising experts were asked about how they think the advertising world is changing. And they start their presentation of the study with the following words…

The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked. Our research points to four evolving future scenarios – and the catalysts that will be driving them. Traditional advertising players – broadcasters, distributors and advertising agencies – may get squeezed unless they can successfully implement consumer, business model and business design innovation.

Why is this study so interesting? Well, there are different topics to talk about. Companies are shifting budgets more and more to the digital world – and not only in the States. But we also know that social media is on the rise. But what we do not know is, how to define the budgets that marketers spend with social media. Are these called advertising dollars – and will these be called the same way in the future? Will these advertising dollars be moving into PR budgets?

Why PR budgets? Because social media is all about the dialogue – the antithesis of a monologue like advertising. Social media is more, it is even a multilogue (company to customers and customers amongst customers). And this is how IBM argues the change…

Attention: The consumer are in control of the sales process. They define the way they receive, perceive and appreciate advertising.

Creativity: The value of advertising comes from the new ‚digital natives‘ that create content for their peers, work with new ad revenue-sharing models (e.g., YouTube, Crackle, Current TV) – all based on new technology. The professional does not rule the process, it will be the semis.

Measurement: Mass reach gets replaced by a new wave customers demanding more individual-specific and involvement- based measurements.

Advertising space:
In the ad sales process the Traditional intermediaries will be made redundant by efficient exchanges

Spot On!
A lot of interesting (and researched) thesis that might become true for the future of the advertising industry. One thing is for sure: Advertising is a one way street – not a dialogue. The company wants the customers – who decides himself if he wants to be addressed by the ad. The truth is that we do more sales by talking to each other, right? Social media will become the new form of lead generation, and lead generation is based on customer service (not on clicks!) which is the basis of building trust – formerly generated via advertising.

Nevertheless, TV did not kill the radio star. But can social media kill the advertising industry?

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Kommentare

5 Kommentare zu "IBM study: The end of advertising is near – as we know it…"

  1. Nils König am 02.10.2009 12:13 

    „Too late“ is a bit overemphasized… The study was published in 2007. All data in it is quite old and it includes basically forecasts even for the last three years and is therefore pretty worthless IMHO… So talking about „the next 5 years“ actually refers to 2008 onwards. However, most of the content is apparently still valid.

  2. Studie: The end of advertising as we know it am 02.10.2009 13:41 

    […] Infos gibt es bei Martin Meyer-Gossner auf TheStrategyWeb. Socialize […]

  3. Martin Meyer-Gossner am 02.10.2009 14:11 

    Nils, THX for the hint. Have changed the wording in order to take out the misunderstanding. The mian point was the content, not the actuality of the study. The content becomes more and more of relevance in my eyes these days. I saw this in talks at dmexco as well as in the panel and answers of the experts. In talks with our clients we can also see this. The world turns a 180 degress with the social web and some clients see what is happening but don’t know how this needs to affect the companies advertising tactics.

  4. Nils König am 02.10.2009 14:17 

    Hallo Martin, alles klar. Hatte mich nur gewundert nach dem Text-Auftakt eine Studie zu lesen, die mir doch schon sehr bekannt vorkam ;-)

  5. Martin Meyer-Gossner am 02.10.2009 14:31 

    Die Studie wurde in meinen Augen von vielen PR und Marketing Menschen nicht wahrgenommen. Und vermutlich ist sie für viele ’neu‘ und hat mehr Aktualität als ich dachte (sie spricht einen ‚langen‘ Zeitraum an, an dessen Anfang wir immer noch sind). Schon nach der dmexco habe ich gemerkt, daß einige mit mehr Fragen zu diesem Thema an mich herangetreten sind. Und nachdem die Entwicklung in zahlreichen Unternehmen doch eher langsamer beim Thema Web und Advertising fortschreitet, kann man den von IBM anvisierten Zeitraum von 5 Jahren vermutlich leicht um ein paar Jahre verlängern.

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