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Advertising & Technology Collide: Semiconductor Companies, Technology Providers, Media Companies and Ad Agencies Partner to Move from Disruption to Monetization
MultiMedia Intelligence, Sep 2007, Pages: 64
Technology has played a key role in making things better, faster, and cheaper. However, technology has also been highly disruptive to the status quo. It changes user behaviour as well as business behaviour, which in turn changes competitiveness and business models. Failure to adapt to changing technology and user behaviour have has proven deadly for companies. The $185 Billion dollar TV advertising industry is now in technology’s cross-hairs. Collectively, the research has identified ‘new media advertising’ opportunities that include Internet advertising, Internet TV, IPTV advertising, mobile TV advertising and in-game advertising will collectively reach over US$31 billion by 2011.
Beyond these segments, a variety of potential advertising and branding models have remained un-exploited, largely because advertisers and media companies don’t fully understand the technology industry, and the technology industry doesn’t understand media and advertising. The report asserts that advertising and technology companies need to engage with companies that in the past they did not pay much attention to. If you are an advertisement agency executive, you need to be asking yourself: What are STMicroelectronics, Texas Instruments and Intel working on today that will enable my next opportunity? If you are a semiconductor or software company, you need to ask: How can my technology enable the next wave of digital advertising?
This report provides a perspective and analysis of the impact that new technologies will have on the advertising industry. It first examines why current advertising is becoming less effective and the role of the DVR. It then addresses the resulting impact on the “upfronts” and the impact on ratings providers such as Nielsen. Digital technologies, platforms and the impact on advertising will subsequently be examined. This includes such products as set-top boxes, PCs, game consoles, DVRs and portable devices. It will finish by discussing new and creative ways that advertisers can utilize core technologies and examining some of the new digital advertising opportunities, including Internet advertising, IPTV advertising, Internet TV, mobile TV advertising, and in-game advertising.
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