Digitization
Description
The digitization of media is causing a number of fundamental changes in the advertising world. First,the gragmentation caused by digital offering caused market shares of most mass media to decline by 20% to 30%. Another effect of digitization is that as the distribution contraint on content has been released, more and more content is avaialbe for free. There are a large share of video downloads are advertising financed rather than paid-for content.
Impact of digitalization
Online’s Slice of Ad Spending Grows Worldwide: Web ad growth to reach double digits in 2010
Online ad spending forecasts from GroupM put digital spending at 17% of total US ad spending in 2010, up from 15.4% this year and 13.9% in 2008.
The “Interaction 2009” report predicts 4% growth in US online ad spending in 2009, to $22.77 billion. Growth will ramp up to 7% next year. Worldwide, online spending is expected to climb 9% in 2009, returning to double-digit growth in 2010.
The rise in worldwide spending to $58.17 billion this year will mean online takes 13.2% of total ad dollars. GroupM predicts that share will increase to 14.6% in 2010.
Online ad spending has been fortunate in the economic downturn—recession-resistant due to its high level of accountability, Internet ad revenue growth has remained positive as spending in all other media dropped.
In the UK, the effect has been so dramatic that online took the biggest slice of advertising revenues in the first half of 2009. Research from the Internet Advertising Bureau UK (IAB UK), PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) put online revenues at 23.5% of the total from January to June, 1.6 percentage points ahead of TV.
Enables
- technological development
- Internet advertising growth
Inhibitors
- people's desire for mobility
- Advertsing payments models are moving to measurable impact
Paradigms
A couple of decades ago people lost their mobility because of technology (landphones, PC’s, etc). Nowadays and with the advances that technology provides people won back their mobility without sacrificing connectivity. People are always online anywhere and with full access to their information.
Experts
- Telecom companies
- Software companies
Web sources
- Annet Aris & Jacques bughin,2009, Managing Media Companies Harnessing Creative Value, Second edition
- eMarketer, september 2008, Citigroup Investment Research, March 2006
- www.emarketer.com/Article.aspx?R=1007312&Ntt=advertisnin+growth&No=8&xsrc=article_head_sitesearchx&N=0&Ntk=basic