Internet companies want a piece of the tradional media pie
Knowledge @ Wharton writes:
The benefit to advertisers would be reduced costs driven down by an open market and hopefully open up entry to a whole raft of new marketers where the barrier to entry was not reachable. There will be a backlash by agencies, marketers and several individuals but as technology brings in the efficiency the question will be are individuals, sales houses, media agencies and the likes providing that much more additional value to their customers?
The value of an agency will still be there, it will be different, but the rates won't be at the center of their offering. I can see a world where advertisng is bought, created and consumed is completly different from today.
"After conquering the advertising frontier in cyberspace, Google, Yahoo and eBay are now turning to traditional media for future growth by brokering ad sales for offline media like radio, television and print. The Internet players' foray into offline advertising could drive down rates, but advertisers and media companies may not completely abandon the current system of relationship-based sales for Internet auctions, according to Wharton faculty and industry executives. There will be little, if any, change in the way viewers see traditional media advertising. What will change are the middlemen who broker these ads." - Read the article for more.Its still early days for this to be a threat and for the likes of Google to change the rules of this game. The Global offline media market is worth $200 billion plus in comparison to an estimated $20 billion global online advertising market. Surely, they would love to get a piece of this. From a technology standpoint its not difficult for these companies to make the process a whole lot easier and efficient. As technology has changed the models of several other businesses, personally i think its only a matter of time before it starts impacting the world of media buying. As media is gets more fragmented and the number of platforms and channels to target users increase the traditional architecture of media negotiation will have to change.
The benefit to advertisers would be reduced costs driven down by an open market and hopefully open up entry to a whole raft of new marketers where the barrier to entry was not reachable. There will be a backlash by agencies, marketers and several individuals but as technology brings in the efficiency the question will be are individuals, sales houses, media agencies and the likes providing that much more additional value to their customers?
The value of an agency will still be there, it will be different, but the rates won't be at the center of their offering. I can see a world where advertisng is bought, created and consumed is completly different from today.
Comments