Industries in Despair Part One - The Advertising Industry

As I look at many of the new technologies being developed by major technology companies on thing remains clear. The future of digital media will be all about giving consumers absolute control of their digital media experience. The problem with this future is that it is one that does not support today’s traditional advertising model. Advertisers are facing great challenges the likes of a prime demographic that spends more time online and playing video games then they do watching TV. Not only do they not watch TV they are conditioned to gloss over online advertising in both video games and digital media online. Not a great use of adverting dollars when you ask someone in the Gen X or below market what the last banner ad they remember is and you are faced with a blank stare. Advertisers also face great challenges with the arrival of pull VOD and IPTV. Both of these digital media strategies are about the consumer and putting the consumer in control. In an IPTV, VOD world the traditional broadcast medium changes drastically changing the way content gets to consumers. Advertisers will need to strategically evolve their strategies to be much more tightly integrated with digital media while it is being produced. The BMW films are a perfect example of great advertising in the future. The key for advertisers will be to be integrated into content consumers are pulling or choosing to see on their TV sets. You are seeing a lot more of this today with product placement on TV and the big screen however I believe this goes much farther then just pure product placement. Primarily because product placement does not necessarily get the products marketing message across. Again the BMW films come to mind. The trick for advertisers and marketers will be do not just do product placement but figure out how to integrate the brand and brand messaging into the pulled content. I believe this will take a much tighter relationship with content producers, brands and marketers and advertising agencies. Frighteningly for the networks in an IPTV, VOD world this relationship can happen independent of them and still find it's way to the consumer. Which is a great transition to my next industry in despair article about the TV Networks.